Principles of Fiscal Decentralization

Fiscal decentralization reform is among the most widely debated policy issues in developing and transitional economies around the world today. The online module Principles of Fiscal Decentralization was designed to provide an introductory overview of how fiscal relations between different levels of government could be structured in order to achieve a sound fiscal system. In many cases, the government sector can be more flexible in responding to variations in regional and local needs and demands for public services by yielding greater fiscal responsibilities to regional and local governments. In addition, decentralization of the public sector also allows for increased citizen participation in the governance process and enhances government accountability.

Development of the materials contained in Principles of Fiscal Decentralization was supported by a variety of sources, including the Andrew Young School of Policy Studies, the World Bank Institute as well as the United Nations Capital Development Fund.

This online module consist of four units, providing an overview of the concepts underlying intergovernmental fiscal relations and highlighting the main building blocks of fiscal decentralization policy. Each unit contains an introductory paper that provides a comprehensive overview of the topic. In addition, each unit contains one or more video lectures by Andrew Young School faculty to provide additional background information. Finally, each unit contains additional resources on the topic, such as background papers, internet links, or references for further reading.