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The Dilemmas of Reform in Weak States: The Case of Post-Soviet Fiscal Decentralization

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  • Lucan A. Way

Abstract

This article explores the dilemmas of reform in weak states through an examination of efforts to decentralize the fiscal system in post-Soviet Ukraine in the 1990s. Despite increased attention to the state, many reform efforts still ignore the full implications that state weakness has for institutional transformation. Inattention to the problems of institutional capacity has led to a misdiagnosis of the problems facing intergovernmental institutions in post-Soviet Ukraine. Overcentralization and soft budget constraints built into formal institutional design demand an unrecognized degree of institutional capacity that is frequently weak or absent in the post-Soviet context. In addition, reform measures that fail to take into account the problems of weak institutions have inadvertently reduced the authority of already enfeebled state institutions.

Suggested Citation

  • Lucan A. Way, 2002. "The Dilemmas of Reform in Weak States: The Case of Post-Soviet Fiscal Decentralization," Politics & Society, , vol. 30(4), pages 579-598, December.
  • Handle: RePEc:sae:polsoc:v:30:y:2002:i:4:p:579-598
    DOI: 10.1177/003232902237827
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    Cited by:

    1. Libman Alexander & Feld Lars P., 2013. "Strategic Tax Collection and Fiscal Decentralization: The Case of Russia," German Economic Review, De Gruyter, vol. 14(4), pages 449-482, December.
    2. UNICEF Innocenti Research Centre. MONEE project, 2009. "Innocenti Social Monitor 2009. Child Well-being at a Crossroads: Evolving challenges in Central and Eastern Europe and the Commonwealth of Independent States," Papers insomo562, Innocenti Social Monitor.
    3. Libman, Alexander, 2010. "Internal centralization and international integration in the post-Soviet space," MPRA Paper 21882, University Library of Munich, Germany.
    4. Libman, Alexander, 2009. "Russian federalism and post-Soviet integration: Divergence of development paths," MPRA Paper 12944, University Library of Munich, Germany.

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