IMPLEMENTATION OF FISCAL DECENTRALIZATION IN INDONESIA: 2001-2009

Fiscal Decentralization and Urbanization in Indonesia

Indonesia went through a process of fiscal decentralization in 2001 involving the devolution of several policymaking and service delivery functions to the subnational tiers of government (provinces and districts). This process is likely to have affected regional patterns of urbanization, because the new prerogatives granted to the local governments have altered the distribution of urban ameniti...

Implementation Rules for Fiscal Decentralization

Partial fiscal decentralization

The fiscal decentralization impulse now sweeping the world often leads to partial decentralization, where subnational governments are funded by central transfers, rather than leading to full local autonomy. Despite the practical important of this arrangement, the literature contains no economic analysis of a partial decentralization regime in a Tiebout-style model. This paper provides such an a...

Worldwide Trends in Fiscal Decentralization*

What is the best arrangement of fiscal powers and responsibilities between the different levels of government? This is a question at the center of policy debate in countries around the world (Bird, 1993). It is not an issue restricted to big countries, as many believe. Though it is an important concern in China and the United States, it is also under study in Nicaragua and the Baltics. Nor is i...

Globalization and Fiscal Decentralization

The international integration of markets and the decentralization of authority within nation states are two defining trends of the contemporary era. A popular speculation is that globalization has caused a downward shift in the locus of governance by reducing the economic costs of smallness and allowing localities and regions with distinctive preferences to pursue their own political and econom...