Intergovernmental Fiscal Relations

The book provides an examination and analysis of the normative issues related to subnational governments public finance, combined with a discussion of decentralization case studies. Although some emphasis is placed on the role of subnational governments in the management of environmental resources, notably water and waste, most of the analysis applies to all public goods and services provided by subnational governments. The book discusses optimal arrangements for sharing fiscal responsibilities among different levels of government, the potential impact of decentralization on the quality of public goods delivery, local governments expenditure and revenue choices, and the effect of decentralization on governments accountability, governance and policy outcomes. It surveys both public finance theory and applied policy debates. The topic is particularly relevant for developing and emerging countries, where well designed decentralization reforms have a higher potential to improve efficiency in the provision of public services, and to enhance the development of integrated and sustainable strategies for the use of water, soil and waste resources.