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Reducing poverty through fiscal decentralization in Ghana and beyond: A review

Author

Listed:
  • Williams Agyemang-Duah
  • Evans Kafui Gbedoho
  • Prince Peprah
  • Francis Arthur
  • Augustus Kweku Sobeng
  • Joshua Okyere
  • Jennifer Mengba Dokbila

Abstract

The unfinished agenda in the theory and practice of fiscal decentralization is how fiscal decentralization affects the universal plague of poverty reduction in developing economies. Focusing on developing economies especially Ghana, and also employing secondary sources of information, this paper made an attempt to provide a holistic review of the concept of fiscal decentralization and its effects on poverty reduction from the optimist and pessimist views. The paper affirmed that fiscal decentralization has the potential for poverty reduction when it is characterized by greater financial autonomy of the local units with proper budgetary allocation, prioritization, accountability and responsiveness. Accountability and proper regulation may reduce some institutional setbacks such as corruption from the system. We, therefore, recommended for a more effective, efficient, and transparent institutional and legal framework to ensure effective fiscal transfer between the central and local governments in order to eliminate various lapses associated with fiscal decentralization as highlighted by the pessimists.

Suggested Citation

  • Williams Agyemang-Duah & Evans Kafui Gbedoho & Prince Peprah & Francis Arthur & Augustus Kweku Sobeng & Joshua Okyere & Jennifer Mengba Dokbila, 2018. "Reducing poverty through fiscal decentralization in Ghana and beyond: A review," Cogent Economics & Finance, Taylor & Francis Journals, vol. 6(1), pages 1476035-147, January.
    • Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1476035
    DOI: 10.1080/23322039.2018.1476035
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    Cited by:

    1. Vincent Ekow Arkorful & Benjamin Kweku Lugu, 2023. "Understanding Rate Evasion Behavior in Local Governance: Application of an Extended Version of the Theory of Planned Behaviour," Public Organization Review, Springer, vol. 23(3), pages 1035-1054, September.
    2. Muhammad Rafiq & Shumaila Naz & José Moleiro Martins & Mário Nuno Mata & Pedro Neves Mata & Saif Maqbool, 2021. "A Study on Emerging Management Practices of Renewable Energy Companies after the Outbreak of Covid-19: Using an Interpretive Structural Modeling (ISM) Approach," Sustainability, MDPI, vol. 13(6), pages 1-15, March.
    3. Megbowon Ebenezer & Aderoju Samuel & Gbenga Peter Sanusi, 2021. "Effectiveness of fiscal federalism for poverty reduction in Nigeria: an analysis of federal and state governments’ expenditures," SN Business & Economics, Springer, vol. 1(9), pages 1-19, September.
    4. Tselios, Vassilis & Rodríguez-Pose, Andrés, 2022. "Can decentralisation help address poverty and social exclusion in Europe?," CEPR Discussion Papers 17471, C.E.P.R. Discussion Papers.
    5. Zhao, Desen & Dou, Yao & Tong, Lu, 2022. "Effect of fiscal decentralization and dual environmental regulation on green poverty reduction: The case of China," Resources Policy, Elsevier, vol. 79(C).
    6. Tselios, Vassilis & Rodriguez-Pose, Andres, 2022. "Can decentralization help address poverty and social exclusion in Europe?," LSE Research Online Documents on Economics 115545, London School of Economics and Political Science, LSE Library.
    7. Ratnawati Kusuma & Prabandari Sri Palupi & Kurniasari Irma, 2022. "The impact of financial inclusion on national development and national financial system stability," HOLISTICA – Journal of Business and Public Administration, Sciendo, vol. 13(2), pages 63-82, December.

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