engleski

What to do when Fiscal Decentralization Fails?

Undoubtely, the world of contemporary local government is facing some crucial challenges. Despite the fact that local governments still play „a major role in delivery fundamental collective public and quasi-public goods“ (...) the nature of local government´s role in the delivery of such goods and services has changed considerably. Decentralization should be embedded in this context. Besides its core definition, in “retrospect», decentralization may also be observed as a parallel process of strengthening of the accountability of local units for the total quality and «supply» of public services in the local area. Inter-municipal cooperation seems to be the most appropriate mean to surpass these problems. It's not just in accordance with subsidiarity principle, it promotes it. Hetzog appoints: IMC is an illustration of subsidiarity principle. So this was the central question of this paper. We consider decentralization policy, just like some other public policies, suitable to be driven top-down or bottom-up. It is popular to think about decentralization as a state top-down policy exclusively. In a way, it is true: state decentralizes functions and money which local governments didn't have before. But, local governments are certainly capable of making themselves capable for decentralization by creating the milieu which is supportive and affirmative to further decentralization.

decentralisation; subsidiarity principle; intermunicipal cooperation

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