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depend on the performance of these two taxes. Secondly, public enterprises demonstrate
reasonable collection efficiency but have poor costing and pricing mechanisms. Lastly, the
local capacity to undertake the new decentralized role is limited because management and
financial control systems are often deficient. There is little co-ordination between different
levels of the decentralized system. In addition, however well designed systems might be, they
cannot achieve the desired results unless the local governments have the capacity to
undertake administration, implementation and enforcement of policies in an efficient and
Unless local governments improve and streamline their revenue generation
mechanisms and expenditure decisions, fiscal decentralization will not be successful.
Furthermore, fiscal decentralization is very much a top down reform and has missed
opportunities for creating good links to the working conditions on the ground at the local level. As can be seen from the assessment of Olongapo City, there are limitations within the
local unit that obstruct its performance. Part of the problem is that a national Code app...
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This document was uploaded on 01/27/2014.
- Winter '13