In many countries, the responsibilities for the provision and financing of public services are being increasingly decentralized. In transition and developing economies, the expanded local government role in service delivery is often hindered by limited financial resources, as well as weak institutional capacity, particularly in terms of inadequate financial, practices, management and know-how. In this context, this note reviews the broad range of parameters pertaining to a sound local government finance system, including local government capacity and potential to access private capital markets in a way consistent with macroeconomic stability and policy objectives. To this effect, the note identifies the building blocks for a resilient local government finance structure, and the crucial elements on which local government creditworthiness is predicated, and is likely to be assessed by relevant market players. The main issues in this regard relate to: enhancing the local regulatory framework and institutional capacity for effective service delivery; improving inter-governmental fiscal relations, and budgetary and control systems; and, strengthening local financial management and capacity to mobilize private resources for local infrastructure. The note also addresses the links between local government finance, and broader capital market issues, as well as the role of specialized intermediaries in local infrastructure finance.
The paper provides information and analysis in support of the Bank's subnational development strategy (GN-2026). The strategy will guide future Bank operations in support of decentralization to address the complex issues countries are facing in their efforts to promote the socioeconomic development in subnational territories. The document is divided in three sections: the first section provides an overview of the decentralization process in Latin America and the Caribbean and sets the stage for an analysis of the key isuues that need to be addresses by the Bank when supporting the decentralization process in the region; the next chapter discusses the challenges confronted by subnational governments. The development of subnational governments is key to improving well-being. The next section focuses on the structure of intergovernmental relations and concludes that a well-designed structure provides subnational governments with incentives to efficiently allocate resources to the most socially profitable uses. The next chapter discusses the governance issues involved in decentralization, while the next section concentrates on the institucional aspects of the institucional aspects of decentralization and concludes that the Bank should emphasize the need for subnational governments to have sufficient institutional capacity at socially acceptable levels of performance. Finally, the last chapter discusses the variety of issues related to financing subnational governments and recommends that the Bank stress the paramount importance of sufficient sources of financing for ensuing good subnational government performance.
South Africa is at a crossroads in its decentralization policy. On the one hand, it has declared its intention to strengthen the fiscal powers of local governments. On the other hand, the institutional arrangements to guarantee fiscal decentralization -- revenue powers and expenditure responsibility -- have not yet been fully defined. Nor has a target been set for the vertical division of resources between the central and lower levels of government. The revenue dimension of fiscal decentralization in South Africa, particularly the question of an equitable vertical share for local governments, is the subject of this paper.In the first section of the paper, we ask how South Africa fits the profile of countries that are “good” candidates for decentralization. We then turn to a description of vertical revenue sharing as it presently exists in South Africa. We also offer a proposal about how an equitable vertical share for South Africa should be determined. A final section summarizes the results. The policy question raised in this paper is straightforward: What percent of all tax and non-tax revenues should be assigned to the central government and what percent should be assigned to the local government? The implementation question is also straightforward: Once the assignment is decided, how do we structure each revenue instrument to guarantee the “desired” assignment of resources?
Based on cross-country data for up to 78 countries, this paper shows that fiscal decentralization-the assignment of expenditure and revenue mobilization functions to subnational levels of government-is associated with various indicators of governance, such as corruption, rule of law, and government effectiveness. Unlike previous studies in the decentralization/governance literature, which focus primarily on expenditure-based measures of decentralization, the results reported in this paper show that the relationship between decentralization and governance depends on how subnational expenditures are financed. The higher the share in total subnational revenues of nontax revenues and grants and transfers from higher levels of government, the stronger the association between decentralization and governance.
This study discusses some characteristics in trend and operation of local finance, and suggests some reform agenda for sound finance. While the share of local finance has decreased compared with that of national finance, local debt and inefficient operations of local expenditure have increased since 1995. This study seeks to find reform agenda of local finance on the basis of decentralization and participation. On the side of decentralization, reform of local tax system and financial management system are suggested. The introduction of consensus-based budgeting and taxpayers' suit are proposed on the part of citizen participation.
The biggest tax story of the last third of the 20 th century was the value-added tax (VAT). From its tentative beginnings in the reform of the French production tax in the early 1950s, by August 2000 some form of VAT existed in at least 123 countries. Few fiscal innovations have been adopted so widely and so quickly. Towards the close of the century, another striking trend was the increasing decentralization of the public sector in many countries around the world. In this process, increasing responsibility for delivering such important and expensive public services as education and health has been devolved to sub-national governments, often to regional governments such as states or provinces. Such decentralization may make good sense in many respects, but experience suggests that it is essential to devolve responsibility not only for expenditures but also for some significant revenues if adequate fiscal accountability is to be maintained.The traditional literature on tax assignment suggests that the best form of taxation for intermediate-level governments is a sales tax. Some form or another of sales tax does in fact constitute the major source of finance for intermediate governments in many countries. Indeed, in developing countries in which income taxes do not play a major role, it is hard to see what other major revenue sources such governments could utilize. The retail sales tax once favored as a regional tax, and still in place in most U.S. states (and some Canadian provinces) is now an aberrationfrom a worldwide perspective. The only good sales tax is now generally considered to be a VAT.There appear to be at least three reasons why the question of sub-national consumption VATs needs to bereconsidered, particularly in federal countries with important regional governments. First, there are few other major revenue options open to countries in which, for whatever reason, substantial expenditure responsibilities have been shifted to lower levels of government, if those governments are to behave in a fiscally responsible manner. Second, sub-national VATs have now in fact been successfully operating in Canada for a decade and have also existed, if to less general acclaim, in Brazil for over 30 years. Finally, several novel proposals have recently been made to overcome certain problems that some see with applying the system used in Canada to other countries in which tax administration is less well developed.
Abstract This paper is contextualized within postcolonial movements for social justice and ecological restoration in India, enabled through the emergent participation of diverse and subaltern stakeholders. This paper engages shifts in forest management in India. Within this frame, it refers to public forest lands reform initiatives in Orissa, a state in eastern India. In 1997-98, assisted by the Swedish International Development Agency, a review was conducted of forest management systems in Orissa. The intention was to understand microlevel frameworks within the state toward the transfer of authority over public forest lands from the government to local communities. Using information generated by this review, this paper discusses critical concerns in Orissa. ********** Explanations Within movements for social change currently underway in South Asia and India, development reforms imply a multitude of contradictions and complexities to a diverse constituency of stakeholders. Such reforms instigate discussions and debate on sustainable development and raise strategic questions related to the role and responsibility of the State and international agencies to marginalized rural communities, and of community access to livelihood resources. It speaks to possibilities of social and ecological restitution that confront critical concerns of governmental decentralization, and relocation of authority and resources. This paper is informed by research connected to public forest lands reform in Orissa, a state in eastern India. In 1997-98, the Swedish International Development Agency (SIDA), the Swedish Government's international development assistance program, aided a review of forest management systems in Orissa. The intention was to understand microlevel frameworks within the state of Orissa toward the decentralization of forest management. A primary objective was to reframe the fabric of donor-community-government collaborations. The aim was to operationalize development mechanisms that embody the ethical commitments of postcolonial advocacy and action in India. I was involved in this process, and responsible for conducting a Statewide participatory assessment of management systems related to public forest lands. (See Chatterji, 1998.) The SIDA review supported participatory and generative methods of inquiry. It produced openings for limited participation of citizens in decision making within consultative governmental forums on public forest lands management. The review submitted its recommendations to SIDA in 1998. These recommendations constituted a proposal for future action linked to the devolution of authority over public forest lands, requesting SIDA financing for an implementation phase in Orissa. This implementation phase would facilitate capacity building for public lands reform through a reorganization and decentralization of the forest department and support to community institutions. In 1998, India conducted nuclear experiments, and in 1999-2000 SIDA retracted its support, citing its differences over India's nuclear politics as a primary reason for its withdrawal. While implicitly committed to anti-nuclear military policies, I would like to acknowledge the problematics of North-South relations where attempts at political/military self-assertion by ex-colonies are policed and met with punitive aid sanctions. (1) Reciprocal penalties are not enforcible on countries of the Global North as they continue to set the standard for nuclear stockpiling or participate in nuclear proliferation. The history of manufactured debt, and the plundering of the resources of former colonies, makes donor aid a critical component of human rights activities in the Global South. This is especially true as the debt of the colonizers to the most underprivileged sections of these societies have never been calculated or repaid. Revoking aid impacts the most margilanized sections of these societies who, ironically, do not have access to decision making that relate to nuclear policy. …
Conservation, Biodiversity, and Resource Management
This study examined the implementation of Responsibility Center Management (RCM) systems in two institutions of higher education: the Graduate School of Business at Institution and the Center of Collaborative Education and Professional Studies at Institution B. RCM is a management and budgeting process for universities that decentralizes authority and responsibility to academic and support centers. Twelve interviews were conducted with one provost and one Chief Financial Officer from each institution and one dean and three faculty members from each school. Their interview responses were subjected to content analysis. All the administrators at each institution were strongly in favor of RCM, which they regarded as a method of continuing strong central guidelines while decentralizing operations, increasing understanding and awareness of costs, and enabling deans to manage income and expenditures better at their schools and centers. Faculty members praised the decentralization and rationality of RCM, but five of the six voiced concerns about the dean's accountability and their individual management styles. There was consensus on both campuses that RCM was more flexible and more rational than traditional fiscal management. Two senior faculty and the six administrators thought that RCM increased information flow and expanded the number of participants in the decision making process. Four of six faculty members thought that academic quality might be hurt because of financially motivated decisions. Faculty members were aware of the difficulties in achieving a proper balance in RCM. Overall, respondents did not advocate RSM as a panacea, but they did consider it an effective planning tool. (Contains 19 references.) (SLD) PERMISSION TO REPRODUCE AND DISSEMINATE THIS MATERIAL HAS BEEN GRANTED BY TO THE EDUCATIONAL RESOURCES INFORMATION CENTER (ERIC) 1 U.S. DEPARTMENT OF EDUCATION Office of Educational Research and Improvement EDUCATIONAL RESOURCES INFORMATION CENTER (ERIC) ffle<is document has been reproduced as received from the person or organization originating it. 0 Minor changes have been made to improve reproduction quality. Points of view or opinions stated in this document do not necessarily represent official OERI position or policy. RESPONSIBILITY CENTER MANAGEMENT: A FINANCIAL PARADIGM AND ALTERNATIVE TO CENTRALIZED BUDGETING Phyllis A. Hensley Benerd School of Education University of the Pacific Stockton, California DJ Bava Fisher Graduate School Monterey Institute Monterey, California Dennis C. Brennan Benerd School of Education University of the Pacific Stockton, California Paper Presented at the American Educational Finance Association 26th Annual Conference Cincinnati, Ohio
The note focuses on the leading role of local level institutions (LLIs) in Burkina Faso, in rural decentralization, and poverty eradication, to enhance equitable prosperity. It is based on the study undertaken by the National Decentralization Commission in Burkina Faso, which draws on case studies in Sanmatenga, Sissili, Houet, and Yatenga, and, presents sociological evidence that certain high-performing LLIs contribute to equitable economic development. Economic findings support this, showing that both lower inequality levels, and lower poverty levels, are linked to a high degree of internal village organization. Contextually, LLIs surround, connect, and manage communities, incorporating many different kinds of indigenous organizations, and functions. Three categories of institutions active at the local level are identified: value institutions, which focus on activating, and maintaining the stability of local governance, and values of the society; production institutions, focused on accessing resources from the national government, so as to increase productivity; and, service-asset management institutions, which integrate productivity, and growth values, focused on managing, and expanding local assets for sustainable development. External aid will need to map these LLIs to guide pro-poor investment, and financing of community driven development, and encourage local governments to formalize participation.
The main purpose of this study is to analyze the correlations between the decentralization and regional disparity in Korea in the 1990s. This study measures the level of decentralization not by single factor, but by three indicators on the dimensions of finance, government function, and personnel. This study also measures the degree of regional disparity using ten indicators on the five dimensions of local economy. local government finance. human resources, SOCs. and living conditions. The major finding is that functional decentralization and personnel decentralization are more positively correlated with alleviating regional disparity than fiscal decentralization. Another finding is that decentralization is positive to alleviate regional disparity on the dimension of local economy and local government finance. but negative to alleviate regional disparity on the dimension of local sacs. The above findings imply that a system of equalization-oriented vertical transfers from the central government is very important to alleviate regional disparity.
Евгений Федорович Сабуров, N. Tipenko, A. Cherniavskii
Budget federalism in Russia began in 1992. Under the effects of strong centrifugal trends, the decentralization of the budget and tax system took place in the form of "waves" of agreements regarding the share distribution of tax receipts, the entry into which entailed the delegation of ever greater powers to finance spending, especially social spending, to the regions.
This paper describes how library operations can be integrated in a cross-platform programming It discusses the organizational and technical issues in planning and designing of macro applications from the technical services workstation. It then describes a variety of technical and public service macro applications. It shows the efficiency and ergonomic benefits of these customized programs. It concludes with an example of how PC-based macro-programs can populate Web-accessible server-side databases with ActiveX technologies. Programming Initiatives Background This article describes how library operations can be integrated, regardless of the systems in use, through what we call the environment. Two keys to a desktop-programmed are the technical services workstation and the macro, a computer program created either through recording series of keystrokes or--far better--through purpose-designed algorithms.(1) While such macros are commonly in use in many libraries within a single system, our article shows how these can be used to link and integrate systems to great functional advantage. At the University of Illinois at Urbana-Champaign (UIUC) we began developing cross-system macros in the context of our migration away from a first-generation system known as LCS/FBR, which had been largely developed in-house and used by a consortium of Illinois libraries.(2) While long-range plans call for moving to a state-of-the-art client/server-centered system, interim arrangements required the implementation of a turnkey telnet-based system, DRA Classic. It quickly became evident that the introduction of new technology would have a profound effect on the library as an organization. Indeed, existing structures and entrenched technologies affected implementation of the system and were in turn highly affected themselves by what was implemented. For that reason, this article looks at the programmed environment not only as a desktop phenomenon, but also as an organizational phenomenon. To have a deep understanding of the real impact desktop computer programming can have in a library, we begin with some organizational and technical issues and how they affected systems and services. Local Organizational Structure The UIUC Library is highly decentralized, made up of some forty-five semi-autonomous departmental libraries. Original cataloging had been decentralized in the mid-1980s; much acquisitions and serials check-in work was also done in the departmental libraries. Serials cataloging and copy cataloging were the respective responsibilities of an Office of the Principal Cataloger unit and of an Automated Services unit. Catalog maintenance was entirely centralized for systems reasons: changes to the consortial catalog could only be performed using hardwired terminals running SuperWylbur or WLN text-editing software. Besides using LCS/FBR, UIUC also maintained a variety of other systems, including IBM for acquisitions accounting and Innopac for serials check-in. All original cataloging was done through OCLC. Hence, multiple input was an overall feature of the configuration. Many parts of the system were not automated; many card files were still in use, especially since retrospective conversion was incomplete. Catalog Maintenance in a Pre-Windows (DOS) Environment UIUC had long grappled with the problem of carrying out catalog maintenance using an inflexible line-editing system. This situation has been documented by Clark and Chan and by Henigman.(3) A variety of computer programs written in BASIC and operating under DOS had been developed to facilitate accuracy and productivity in cataloging maintenance. Essentially, these programs guided inputters in the formatting of data and made possible the interface between the separate LCS and FBR databases. In implementing the new system, however, these programs became obsolete, since SuperWylbur, LCS, and FBR were all being retired. …
The note focuses on the external \n benefits of rural electrification (RE), i.e., improved \n access to communication, education, and economic \n opportunities, in addition to extended health services. It \n outlines key lessons to scaling up RE, namely macroeconomic \n stability, continued government commitments, and \n institutional capacity. However, it also suggests that grid \n extension is not always cost-effective, rather, \n decentralized delivery options, and alternative energy \n sources, such as solar photovoltaic, mini-hydro, and other \n renewable energy sources should be considered. Moreover, \n good practices indicate the need for power sector reform, \n regulatory framework with legal guarantees that utilities \n can operate autonomously, and, financial viability, that is, \n to ensure commercialization, and identify a cost-recovery \n system that takes into account capital investment costs, and \n contributions levels. Strongly emphasized is the involvement \n of local communities in the design, and implementation of \n RE, by setting rural electrification committees, and by \n establishing institutional, and organizational procedures \n for project planning.
Abstract Before describing the model of palliative care in Spain, it is necessary to give a brief description of the country’s current health care model. Our country has approximately 40 million inhabitants. The public health system offers universal access and is publicly financed. In accordance with the constitutional principle of territorial decentralization in the healthcare field, public health services and functions have been transferred from central government to 7 of the 17 Autonomous Regions, affecting some 62% of the country’s population.