n Journal of Public Administration - Theoretical perspective to fiscal decentralisation in developing countries
|Article Title||Theoretical perspective to fiscal decentralisation in developing countries|
|© Publisher:||South African Association of Public Administration and Management (SAAPAM)|
|Journal||Journal of Public Administration|
|Author||A. Hoyos and F. Uys|
|Publication Date||Nov 2008|
|Pages||26 - 43|
Fiscal decentralisation may create a better delivery of public services and a faster response to local and national responsibilities. However a major constraint towards an effective fiscal decentralisation process is the phenomenon of inadequate finance to sub-national governments especially in developing countries. Fiscal decentralisation in developing countries has been approached in different ways and has yielded different results. In order to have sound fiscal decentralisation processes and efficient intergovernmental fiscal relations, several key changes have to be followed. Although there is no one right way to implement fiscal decentralisation these frameworks should be improved if countries wish to secure profitable and effective development of their fiscal decentralisation processes.
The process of fiscal decentralisation comprises many interrelated, interdependent, and mutually-supporting processes; it is important that all components be considered in conjunction with the others. If correctly implemented, fiscal decentralisation can be a feasible way to obtain poverty reduction and to provide an enabling environment for human development and economic growth.
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