Subnational governments’ capacity to effectively fund and deliver public services are crucial for the realisation of the benefits of decentralisation. However, subnational capacities often suffer from significant weaknesses, ranging from inadequate assignments of own-revenues, through to flaws in tax administration, the design of intergovernmental transfers, spending assignments and various aspects of public financial management.
Subnational governments' capacity to effectively fund and deliver public services are crucial for the realisation of the benefits of decentralisation. However, subnational capacities often suffer from significant weaknesses, ranging from inadequate assignments of own-revenues, through to flaws in tax administration, the design of intergovernmental transfers, spending assignments and various aspects of public financial management. The volume discusses how better diagnostics and more strategic reforms can contribute to easing the resource constraints on subnational governments, as well as creating appropriate incentives for these governments to improve performance. The volume includes studies of the enabling conditions for subnational capacity building in Asia, as well as focused studies of China and India's fiscal relations challenges.
Since its adoption in 2015, the 2030 Agenda on Sustainable Development has shaped not only international development cooperation but also the design of national trajectories for social and economic development. In tandem with other global agendas adopted that year (such as the Paris Agreement on Climate Change and UN Habitat’s New Urban Agenda) it remains the global and regional blueprint for sustainable development despite the COVID-19 pandemic. The term "localizing the Sustainable Development Goals (SDGs)" has been used to capture the importance of subnational governments for achieving national SDG agendas. However, there is little deeper analysis of the required nexus between fiscal, political, and legal arrangements for SNGs; their involvement in national policy arenas (which discuss and decide on national SDG strategies); and the need for locally disaggregated data systems on the one hand, and effective SDG localization strategies on the other hand. It is this aspect which the present publication explores in greater detail by using country examples and conceptual analyses. The text will be of interest to policymakers, scholars, students and practitioners in public policy and public administration, decentralization, and sustainable development, with a focus on the Asia and Pacific region. The Open Access version of this book, available at www.taylorfrancis.com, has been made available under a Creative Commons Attribution-Non-Commercial-No Derivative License (CC BY-NC-ND 3.0 IGO).
This report looks at crucial elements of reforms to growth-friendly recurrent taxes on immovable property. Tax design practices in place in OECD and partner countries are compared and analysed through the lenses of economic theory and empirical analysis.
This book takes an interdisciplinary look at how the institutions of intergovernmental fiscal relations are shaped, drawing on work by both academics and practitioners in the field.
This report presents the policy recommendations resulting from the National Dialogue on Water in Indonesia, which took place between June 2022 and March 2023. Getting water resources management right, underpinned with appropriate financing mechanisms, is a prerequisite for realising Indonesia’s ambitious national economic growth agenda to become one of the top five global economies by 2045. The Dialogue, therefore, centred around two priority areas: 1) financing water infrastructure and 2) non-structural measures for flood disaster risk reduction. The report explores several instruments to enhance the financing of water services in Indonesia, such as the advantages and disadvantages of uniform water tariffs, independent economic regulation, pollution charges and demand management instruments. The report recommends the utilisation of land value capture as an additional source of financing. It also explores how water information systems for disaster response, flood forecasting and early warning can reduce flood disaster risk. The National Dialogue on Water in Indonesia is part of a regional initiative with the Ministry of Environment of the Republic of Korea, the Asia Water Council and the OECD.
The Global Compendium of Land Value Capture, a joint project by the OECD and the Lincoln Institute of Land Policy, is an ambitious undertaking to understand the full landscape of land value capture (LVC) instruments, how they are configured and deployed across the globe in OECD and Non-OECD countries, and what it would take to unleash their full potential as a sustainable revenue source.
Subnational governments' capacity to effectively fund and deliver public services are crucial for the realisation of the benefits of decentralisation. However, subnational capacities often suffer from significant weaknesses, ranging from inadequate assignments of own-revenues, through to flaws in tax administration, the design of intergovernmental transfers, spending assignments and various aspects of public financial management. The volume discusses how better diagnostics and more strategic reforms can contribute to easing the resource constraints on subnational governments, as well as creating appropriate incentives for these governments to improve performance. The volume includes studies of the enabling conditions for subnational capacity building in Asia, as well as focused studies of China and India's fiscal relations challenges.
The economic activity that drives growth in developing countries is heavily concentrated in cities. Catchphrases such as “metropolitan areas are the engines that pull the national economy” turn out to be fairly accurate. But the same advantages of metropolitan areas that draw investment also draw migrants who need jobs and housing, lead to demands for better infrastructure and social services, and result in increased congestion, environmental harm, and social problems. The challenges for metropolitan public finance are to capture a share of the economic growth to adequately finance new and growing expenditures and to organize governance so that services can be delivered in a cost-effective way, giving the local population a voice in fiscal decision making. At the same time, care must be taken to avoid overregulation and overtaxation, which will hamper the now quite mobile economic engine of private investment and entrepreneurial initiative. Metropolitan planning has become a reality in most large urban areas, even though the planning agencies are often ineffective in moving things forward and in linking their plans with the fiscal and financial realities of metropolitan government. A growing number of success stories in metropolitan finance and management, together with accumulated experience and proper efforts and support, could be extended to a broader array of forward-looking programs to address the growing public service needs of metropolitan-area populations. Nevertheless, sweeping metropolitan-area fiscal reforms have been few and far between; the urban policy reform agenda is still a long one; and there is a reasonable prospect that closing the gaps between what we know how to do and what is actually being done will continue to be difficult and slow. This book identifies the most important issues in metropolitan governance and finance in developing countries, describes the practice, explores the gap between practice and what theory suggests should be done, and lays out the reform paths that might be considered. Part of the solution will rest in rethinking expenditure assignments and instruments of finance. The “right” approach also will depend on the flexibility of political leaders to relinquish some control in order to find a better solution to the metropolitan finance problem.
