Managing Decentralization

• In Event: Future Challenges in Fiscal Federalism

Abstract

Abstract. Paul Smoke(New York University). Strengthening subnational governments through public sector decentralization has been a global phenomenon for many years, albeit in diverse ways. The fiscal framework is indisputably a foundational element of decentralization—without adequate, well-designed and well-utilized resources, decentralization cannot meet its objectives. Although fiscal decentralization may be necessary to pursue priority goals, it is not sufficient for good performance. The broader intergovernmental framework needs not only to establish the fiscal powers and functions of different levels of government, but also to incorporate or be linked to other policies on public sector structures and processes that support subnational government operations. Failure to capture relationships among administrative, fiscal and political dimensions of decentralization can reduce their impact. This paper focuses on selected aspects of decentralized administration, governance and operations that must work together with fiscal elements for successful and sustainable decentralization. It also advocates for greater balance between the design of decentralization and its implementation.

Author

• Paul Smoke, New York University