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Why Decentralization ? The Puzzle of causation

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  • Sharma, Chanchal Kumar

Abstract

Most countries especially the developing ones around the world are facing external as well as internal pressures to decentralize and are actually becoming part of the trend which if not universal is nonetheless the dominant trend. General causes include systemic forces like democratization and economic development; specifc causes however are different for different countries. In some countries the policies of opening up of economy and policies devised to deal with the challenges posed by new ‘globalized’ world are interacting with domestic political and economic institutions in such a way so as to create incentives for decentralization. In addition there is external pressure coming from IMF and WB who implicitly and explicitly have declared ‘decentralization’ as their most favoured policy prescription especially for the developing world.

Suggested Citation

  • Sharma, Chanchal Kumar, 2004. "Why Decentralization ? The Puzzle of causation," MPRA Paper 196, University Library of Munich, Germany, revised Feb 2005.
    • Handle: RePEc:pra:mprapa:196
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    File URL: https://mpra.ub.uni-muenchen.de/196/1/MPRA_paper_196.pdf
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    References listed on IDEAS

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    1. Philippe Aghion & Patrick Bolton, 1992. "An Incomplete Contracts Approach to Financial Contracting," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 59(3), pages 473-494.
    2. Roy Bahl, 1999. "Implementation Rules For Fiscal Decentralization," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper9901, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
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    Cited by:

    1. Plata, Mar de, 2009. "Reunión Comisión de Descentralización y Autonomía Local Congreso FLACMA [Reunion Committee on Decentralization and Local Autonomy]," MPRA Paper 16563, University Library of Munich, Germany.
    2. Grasa, Rafael & Camps, Arnau, 2009. "Conflict Prevention and Decentralized Governance," MPRA Paper 18877, University Library of Munich, Germany.
    3. Robinson D. BoyeBandie, 2015. "The Effects of the District Assemblies Common Fund on District Assemblies Internally Generated Revenue Mobilisation in Ghana: An Analysis of the Early Years of the Fund," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 5(9), pages 529-542, September.
    4. Thushyanthan Baskaran, 2010. "Supranational integration and national reorganization: On the Maastricht treaty’s impact on fiscal decentralization in EU countries," Constitutional Political Economy, Springer, vol. 21(4), pages 309-335, December.
    5. Baskaran, Thushyanthan, 2009. "Supranational Integration And National Reorganization," MPRA Paper 21597, University Library of Munich, Germany.
    6. Libman, Alexander Mikhailovich, 2009. "Эндогенные Границы И Распределение Власти В Федерациях И Международных Сообществах [ENDOGENOUS BOUNDARIES AND DISTRIBUTION OF POWER In the Federation]," MPRA Paper 16473, University Library of Munich, Germany.
    7. Inaki Aldasoro & Mr. Mike Seiferling, 2014. "Vertical Fiscal Imbalances and the Accumulation of Government Debt," IMF Working Papers 2014/209, International Monetary Fund.
    8. Thushyanthan Baskaran, 2010. "On the link between fiscal decentralization and public debt in OECD countries," Public Choice, Springer, vol. 145(3), pages 351-378, December.
    9. Sharma, Chanchal Kumar, 2008. "Emerging Dimensions Of Decentralization Debate In The Age Of Glocalization," MPRA Paper 6734, University Library of Munich, Germany.
    10. Abdul Jalil, Ahmad Zafarullah, 2009. "Decentralization, Subnational Governments' Behaviour and Macroeconomic Instability: The Case of Malaysia," MPRA Paper 19071, University Library of Munich, Germany.

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    More about this item

    Keywords

    Decentralization; Causes; Globalization; IMF; WB;
    All these keywords.

    JEL classification:

    • Z0 - Other Special Topics - - General
    • H1 - Public Economics - - Structure and Scope of Government
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • H8 - Public Economics - - Miscellaneous Issues
    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration

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