Applying a Simple Measure of Good Governance to the Debate on Fiscal Decentralization

Applying a Simple Measure of Good Governance to the Debate on Fiscal Decentralization

Author: Anwar Shah

Publisher:

Published: 2016

Total Pages: 28

ISBN-13:

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Applying an index for the quality of governance reveals a surprisingly strong positive correlation between fiscal decentralization and quality of governance.Debates about the appropriate role, policies, and institutions of the state are often hampered by the lack of a definition for good government. To provide a quantifiable measure of good government, Huther and Shah develop an index for the quality of governance for a sample of 80 countries. They apply the index to the debate on the appropriate level of fiscal decentralization.In measuring the quality of governance, the authors develop indices for the government?s ability to:- Ensure political transparency and a voice for all citizens (the citizen participation index measures political freedom and political stability).- Provide effective public services efficiently (the government orientation index measures judicial and bureaucratic efficiency and the absence of corruption).- Promote the health and well-being of its citizens (the social development index measures human development and equitable distribution of income).- Create a favorable climate for stable economic growth (the economic management index measures outward orientation, independence of the central bank, and an inverted debt-to-GDP ratio). In relating the index of governance quality to degree of fiscal decentralization for the 80 countries, Huther and Shah are not surprised to find a positive relationship between fiscal decentralization and quality of governance. But the strength of the correlation is surprising.This paper - a product of Country Evaluation and Regional Relations Division, Operations Evaluation Department - is part of a larger effort in the department to examine the role of the authorizing environment in public sector performance.


Applying a Simple Measure of Good Governance to the Debate on Fiscal Decentralization

Applying a Simple Measure of Good Governance to the Debate on Fiscal Decentralization

Author: Jeff Huther

Publisher: World Bank Publications

Published: 1998

Total Pages: 37

ISBN-13:

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March 1998 Applying an index for the quality of governance reveals a surprisingly strong positive correlation between fiscal decentralization and quality of governance. Debates about the appropriate role, policies, and institutions of the state are often hampered by the lack of a definition for good government. To provide a quantifiable measure of good government, Huther and Shah develop an index for the quality of governance for a sample of 80 countries. They apply the index to the debate on the appropriate level of fiscal decentralization. In measuring the quality of governance, the authors develop indices for the government's ability to: * Ensure political transparency and a voice for all citizens (the citizen participation index measures political freedom and political stability). * Provide effective public services efficiently (the government orientation index measures judicial and bureaucratic efficiency and the absence of corruption). * Promote the health and well-being of its citizens (the social development index measures human development and equitable distribution of income). * Create a favorable climate for stable economic growth (the economic management index measures outward orientation, independence of the central bank, and an inverted debt-to-GDP ratio). In relating the index of governance quality to degree of fiscal decentralization for the 80 countries, Huther and Shah are not surprised to find a positive relationship between fiscal decentralization and quality of governance. But the strength of the correlation is surprising. This paper-a product of Country Evaluation and Regional Relations Division, Operations Evaluation Department-is part of a larger effort in the department to examine the role of the authorizing environment in public sector performance.


Fiscal Decentralization and Local Finance in Developing Countries

Fiscal Decentralization and Local Finance in Developing Countries

Author: Roy Bahl

Publisher: Edward Elgar Publishing

Published: 2018-03-30

Total Pages: 430

ISBN-13: 1786435306

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This book draws on experiences in developing countries to bridge the gap between the conventional textbook treatment of fiscal decentralization and the actual practice of subnational government finance. The extensive literature about the theory and practice is surveyed and longstanding problems and new questions are addressed. It focuses on the key choices that must be made in decentralizing, on how economic and political factors shape the choices that countries make, and on how, by paying more attention to the need for a more comprehensive approach and the critical connections between different components of decentralization reform, everyone involved might get more for their money.


PEFA, Public Financial Management, and Good Governance

PEFA, Public Financial Management, and Good Governance

Author: Jens Kromann Kristensen

Publisher: World Bank Publications

Published: 2019-11-24

Total Pages: 168

ISBN-13: 146481466X

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This project, based on the Public Expenditure and Financial Accountability (PEFA) data set, researched how PEFA can be used to shape policy development in public financial management (PFM) and other major relevant policy areas such as anticorruption, revenue mobilization, political economy analysis, and fragile states. The report explores what shapes the PFM system in low- and middle-income countries by examining the relationship between political institutions and the quality of the PFM system. Although the report finds some evidence that multiple political parties in control of the legislature is associated with better PFM performance, the report finds the need to further refine and test the theories on the relationship between political institutions and PFM. The report addresses the question of the outcomes of PFM systems, distinguishing between fragile and nonfragile states. It finds that better PFM performance is associated with more reliable budgets in terms of expenditure composition in fragile states, but not aggregate budget credibility. Moreover, in contrast to existing studies, it finds no evidence that PFM quality matters for deficit and debt ratios, irrespective of whether a country is fragile or not. The report also explores the relationship between perceptions of corruption and PFM performance. It finds strong evidence of a relationship between better PFM performance and improvements in perceptions of corruption. It also finds that PFM reforms associated with better controls have a stronger relationship with improvements in perceptions of corruption compared to PFM reforms associated with more transparency. The last chapter looks at the relationship between PEFA indicators for revenue administration and domestic resource mobilization. It focuses on the credible use of penalties for noncompliance as a proxy for the type of political commitment required to improve tax performance. The analysis shows that countries that credibly enforce penalties for noncompliance collect more taxes on average.


Transparency in Government Operations

Transparency in Government Operations

Author: Mr.J. D. Craig

Publisher: International Monetary Fund

Published: 1998-02-03

Total Pages: 50

ISBN-13: 155775697X

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Transparency in government operations is widely regarded as an important precondition for macroeconomic fiscal sustainability, good governance, and overall fiscal rectitude. Notably, the Interim Committee, at its April and September 1996 meetings, stressed the need for greater fiscal transparency. Prompted by these concerns, this paper represents a first attempt to address many of the aspects of transparency in government operations. It provides an overview of major issues in fiscal transparency and examines the IMF's role in promoting transparency in government operations.


Urban Decline and the Future of American Cities

Urban Decline and the Future of American Cities

Author: Katharine L. Bradbury

Publisher: Brookings Institution Press

Published: 1982-01-01

Total Pages: 309

ISBN-13: 9780815710530

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During the past two decades, most large American cities have lost population, yet some have continued to grow. Does this trend foreshadow the 'death' of our largest cities? Or is urban decline a temporary phenomenon likely to be reversed by high energy costs?


International Encyclopedia of Human Geography

International Encyclopedia of Human Geography

Author:

Publisher: Elsevier

Published: 2019-11-29

Total Pages: 7278

ISBN-13: 0081022964

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International Encyclopedia of Human Geography, Second Edition, Fourteen Volume Set embraces diversity by design and captures the ways in which humans share places and view differences based on gender, race, nationality, location and other factors—in other words, the things that make people and places different. Questions of, for example, politics, economics, race relations and migration are introduced and discussed through a geographical lens. This updated edition will assist readers in their research by providing factual information, historical perspectives, theoretical approaches, reviews of literature, and provocative topical discussions that will stimulate creative thinking. Presents the most up-to-date and comprehensive coverage on the topic of human geography Contains extensive scope and depth of coverage Emphasizes how geographers interact with, understand and contribute to problem-solving in the contemporary world Places an emphasis on how geography is relevant in a social and interdisciplinary context


Asian Development Experience Vol. 2

Asian Development Experience Vol. 2

Author: Yasutani Shimomura

Publisher: Institute of Southeast Asian Studies

Published: 2004-01-19

Total Pages: 396

ISBN-13: 981230200X

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This volume investigates the missing link, the complicated realities of the relations between governance and development through case studies of ASEAN countries. Its main objective is to explore a theoretical framework to overcoming the limitations of mainstream approaches by employing case studies on decentralization, crisis management, corporate governance and foreign aid management of both public and private entities. From the beginning of the 1990s onwards, the international aid community has increasingly stressed that good governance, together with democracy and protection of basic human rights, is indispensable for sustainable economic development. The terms, however, are complex, broad, and arguable. They largely refer to discipline of government institutions and the capacity of the public sector. While a wide variety of empirical studies has been done on the relations between good governance and development, it is still unclear how the differences in governance influence development performance in a real world.


The Practice of Fiscal Federalism

The Practice of Fiscal Federalism

Author: Anwar Shah

Publisher: McGill-Queen's Press - MQUP

Published: 2007

Total Pages: 451

ISBN-13: 0773560440

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Contributors provide a fascinating account of how federal countries are confronting the traditional challenges of conflicts over division of fiscal powers while also coping with emerging challenges of globalization and citizen empowerment arising from the information revolution. They analyze how relationships and roles in different orders of government are being reshaped and show how local solutions inspired by global principles help strengthen government accountability and improve the quality of life for citizens.


Corruption and Good Governance in Asia

Corruption and Good Governance in Asia

Author: Nicholas Tarling

Publisher: Routledge

Published: 2007-05-07

Total Pages: 297

ISBN-13: 1134224605

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Bringing together contributions on the nature of corruption in East and Southeast Asia, this edited volume examines the means of limiting and ultimately eliminating corruption at a national and international level. Taking a country by country approach the text explores: the concept of corruption, now and in the past recent experiences of Asian countries at the macro- and micro-levels practical local and international measures to constrain corruption. The volume outlines key principles of good governance and the policies and practices essential for their application. As such, it represents an extremely valuable contribution to our understanding of corruption and how to tackle the problem.