Fiscal decentralization practices in developing countries

Abstract

The objective of the article was to identify and describe the current state of fiscal decentralization in Ukraine, Armenia and Georgia and the problems and achievements of territorial communities. Observation and comparative analysis were the main tools used. The study showed that effective fiscal decentralization of territorial communities requires the implementation of the relevant experience of developing countries that have achieved significant results. Fiscal decentralization, the transfer of taxes and spending powers to lower levels of government has become an important strategy for modern governance in developing countries. Fiscal decentralization is facilitated by a combination of citizens’ struggle to actively participate in the management process and dissatisfaction with the outcomes of the centrally planned economy. It is concluded that adequate decentralization strengthens the organs of local self-government and forces states to be more accountable to their citizens. In this regard, the adequacy and prospects of Sweden’s fiscal decentralization approach were also noted as a model worthy of study.

Municipal Tax Management. A Case Study in Municipalities in Norte de Santander, Colombia, From 1995 to 2023

“…En su teoría pura de los gastos locales, Tiebout (1956) señala la importancia de la satisfacción de la demanda de bienes públicos y su relación con la carga impositiva para financiarlos a instancias subnacionales de gobierno, donde los ciudadanos tienen capacidad directa de influir en las decisiones políticas, por lo que, hipotéticamente, la participación democrática no se limita al ejercicio de un voto. Frente a este último aspecto, Ramírez Gómez et al ( 2023), Medina Sotelo et al (2023) y Oluyko et al (2022) resaltan la importancia de la descentralización en el fortalecimiento de la democracia, ya que traslada la toma de decisiones a unidades de gobierno donde es más cercana la participación de la ciudadanía.…”

The Challenges of Decentralization Fiscal Regulations: Experience from the Philippines

“…Fiscal decentralization can exacerbate or mitigate economic inequality, depending on how resources are distributed and used. 49 Seventh, evaluate how fiscal decentralization will affect the provision of essential public services. Ensure that this leads to the provision of better services, especially in areas such as education, healthcare and infrastructure.…”