commission on fiscal imbalance 合集

In the centralist structure decision making power

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Unformatted text preview: % 55.47% 100.00% 0.00% 100.00% 0.00% Estonia 44.19% 55.81% 44.26% 55.74% 0.00% 100.00% 100.00% 0.00% 100.00% 0.00% Hungary 81.27% 18.73% 79.50% 20.50% 49.84% 50.16% 50.00% 50.00% 100.00% 0.00% 100.00% 0.00% 0.00% 100.00% Iceland 46.92% 53.08% 45.63% 54.37% 54.46% 45.54% 54.64% 45.36% 100.00% 0.00% 100.00% 0.00% Kazakhstan 18.06% 81.94% 15.86% 84.14% 3.30% 96.70% 0.98% 99.02% 100.00% 0.00% 100.00% 0.00% Latvia 0.00% 100.00% Lithuania 21.79% Mauritius 100.00% Moldova N/A Mongolia 78.21% 0.00% 100.00% 0.00% 100.00% 0.23% 99.77% 100.00% 0.00% 100.00% 0.00% 0.00% 100.00% 0.00% 100.00% 0.00% 100.00% 100.00% 0.00% 100.00% 0.00% 0.00% 100.00% N/A 0.00% 100.00% 0.00% 85.10% 14.90% 85.88% 14.12% 100.00% 0.00% 100.00% 0.00% 0.00% 100.00% N/A N/A 1.55% 98.45% N/A N/A 100.00% 0.00% 0.00% 100.00% 100.00% 0.00% 100.00% 0.00% 59.56% 100.00% 0.00% 100.00% 0.00% 0.00% 100.00% 100.00% 0.00% 100.00% 0.00% 71.32% 100.00% 0.00% 100.00% 0.00% Slovenia 100.00% 0.00% 100.00% 0.00% 0.00% 100.00% 15.53% 84.47% Source: International Monetary Fund. 1998. Government Finance Statistics Year Book 1998, Country Tables. 100.00% 0.00% 100.00% 0.00% Norway 40.87% 59.13% 44.10% 55.90% Poland 77.17% 22.83% 76.55% 23.45% Slovak Rep. 82.91% 17.09% 84.33% 15.67% 150 0.00% 100.00% 35.17% 64.83% 0.00% 100.00% 24.50% 75.50% 0.00% 100.00% 40.44% 28.68% Commission on Fiscal Imbalance 2. WHY DECENTRALIZATION? The best starting-point for a discussion about decentralization-centralization debate is the structural arrangement of government. In the centralist structure decision-making power concentrates in the hands of central government bureaucrats whereas in a decentralized system subnational governments have decision-making power on issues that effect their citizens’ life. Although decentralization takes different forms, as discussed in the fourth section, political and economic dimensions of centralization-decentralization debate are inexorably linked to each other. In order to have economic gains to be realized from decentralization, it is necessary to have decentralization of political decision-making authority. This logic suggests that the greater the number of political units to which political authority is decentralized, economic gains are likely to be maximized. This is because large numbers of political units mean more choice to individuals to find a community that provides the level of outputs best suited their tastes (Tiebout, 1956). Therefore, there are two dimensions of the decentralization of public management system: economic and political. The standard economic dimensions of a public finance policy are macroeconomic stability, equity and efficiency (Musgrave and Musgrave, 1984). The efficiency aspect of the economic dimension is the economists’ raison d’être for fiscal decentralization. Since individual preferences for public goods differ, in a fiscally decentralized system individuals choose to live in a community that reflect their preference, which in return maximizes social...
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