Commentary
During our visit, we observed a democracy that has learned from its difficult past and is working toward an even more dynamic future.
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Paper
Pitfalls on the Road to Fiscal Decentralization
Recently, pressures for fiscal decentralization have increased in various parts of the world. When cultural, ethnic, or linguistic diversity characterizes a country's population, the justification for giving different regions more control over their political and economic decisions seems to acquire more legitimacy.
By Vito Tanzi
Published on Apr 26, 2001
Recently, pressures for fiscal decentralization have increased in various parts of the world. When cultural, ethnic, or linguistic diversity characterizes a country's population, the justification for giving different regions more control over their political and economic decisions seems to acquire more legitimacy.
In Pitfalls on the Road to Fiscal Decentralization, Vito Tanzi discusses issues relevant to the question of whether or not fiscal decentralization would generate the positive results that its supporters claim. Tanzi argues that if countries meet certain conditions before the process of decentralization begins, positive outcomes are more likely to occur because of decentralization. Likewise, Tanzi notes that there may be alternatives preferable to decentralization that countries should first carefully consider before making any final decisions.
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About the Author
Vito Tanzi
Former Senior Associate
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