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Richard Miller Bird - Decentralization of the socialist state: intergovernmental finance in transition economies

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Emphasizes the importance of designing a well-functioning intergovernmental fiscal system for achieving the reform objectives of economies in transition. This study explores the issues involved in redesigning intergovernmental relations in Albania, Bulgaria, Hungary, Poland, Romania, the Russian Federation, and Ukraine, where extensive political and fiscal decentralization is now underway. The volume focuses on the elements of decentralization in the transitional economies that distinguish them from those in the rest of the world. The book shows that in the transition from a command to a market economy, designing a well-functioning intergovernmental fiscal system is a prerequisite for achieving other reform objectives: macroeconomic stability, private sector development, and a social safety net for those hurt by the transition. The study further demonstrates that a broader analytical framework than is conventionally involved in the study of intergovernmental finance is needed for analyzing fiscal issues in these economies.

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title Decentralization of the Socialist State Intergovernmental Finance - photo 1

title:Decentralization of the Socialist State : Intergovernmental Finance in Transition Economies World Bank Regional and Sectoral Studies
author:Bird, Richard Miller
publisher:World Bank
isbn10 | asin:0821331868
print isbn13:9780821331866
ebook isbn13:9780585228938
language:English
subjectIntergovernmental fiscal relations--Europe, Eastern, Fiscal policy--Europe, Eastern, Decentralization in government--Europe, Eastern.
publication date:1995
lcc:HJ1000.7.D43 1995eb
ddc:336.4
subject:Intergovernmental fiscal relations--Europe, Eastern, Fiscal policy--Europe, Eastern, Decentralization in government--Europe, Eastern.
Page iii
Decentralization of the Socialist State
Intergovernmental Finance in Transition Economies
Edited by
Richard M. Bird
Robert D. Ebel
Christine I. Wallich
Page iv
1995 The International Bank for Reconstruction
and Development / The World Bank
1818 H Street, N.W., Washington, D.C. 20433
All rights reserved
Manufactured in the United States of America
First printing May 1995
Second printing October 1999
The World Bank Regional and Sectoral Studies series provides an outlet for work that is relatively limited in its subject matter or geographical coverage but that contributes to the intellectual foundations of development operations and policy formulation. Some sources cited in this paper may be informal documents that are not readily available.
The findings, interpretations, and conclusions expressed in this publication are those of the authors and should not be attributed in any manner to the World Bank, to its affiliated organizations, or to the members of its Board of Executive Directors or the countries they represent.
The material in this publication is copyrighted. Requests for permission to reproduce portions of it should be sent to the Office of the Publisher at the address shown in the copyright notice above. The World Bank encourages dissemination of its work and will normally give permission promptly and, when the reproduction is for noncommercial purposes, without asking a fee. Permission to copy portions for classroom use is granted through the Copyright Clearance Center, Inc., Suite 910, 222 Rosewood Dr., Danvers, Massachusetts 01923, U.S.A.
The complete backlist of publications from the World Bank is shown in the annual Index of Publications, which contains an alphabetical title list and indexes of subjects, authors, and countries and regions. The latest edition is available free of charge from Distribution Unit, Office of the Publisher, The World Bank, 1818 H Street, N.W., Washington, D.C. 20433, U.S.A., or from Publications, The World Bank, 66, avenue d'Ina, 75116 Paris, France.
Richard M. Bird is professor of economics and director of the International Centre for Tax Studies, University of Toronto. Robert D. Ebel is an economist in the World Bank's Europe and Central Asia/Middle East and North Africa Technical Department. Christine I. Wallich is lead economist in the Central Europe Department of the World Bank's Europe and Central Asia Region.
Cover design by Sam Ferro
Library of Congress Cataloging-in-Publication Data
Decentralization of the socialist state / Richard M. Bird, Robert D. Ebel, and Christine I. Wallich, eds.
p. cm. (World Bank regional and sectoral studies)
Includes bibliographical references and index.
ISBN 0-8213-3186-8
1. Intergovernmental fiscal relationsEurope, Eastern. 2. Fiscal
policyEurope,
Eastern. 3. Decentralization in governmentEurope, Eastern. I. Bird, Richard Miller, 1938- II. Ebel, Robert D.
III. Wallich, Christine, 1952- III. Series.
HJ1000.7.D430 1995
336.4dc20 95-2528
CIP
Page v
Contents
Contributors
vii
Preface
ix
Acknowledgments
xvi
1. Fiscal decentralization: From command to market
Richard M. Bird, Robert D. Ebel, and Christine I. Wallich
1
2. Financing local government in Hungary
Richard M. Bird, Christine I. Wallich, and Gbor Pteri
69
3. Financing a large municipality: Budapest
Robert D. Ebel and Peter Simon
119
4. Local and intergovernmental finances in Poland: An evolving agenda
Luca Barbone and James F. Hicks
153
5. Intergovernmental fiscal relations in Bulgaria
Jorge Martinez-Vazquez
183
6. Decentralization and local government finance in Romania
Felix A. Jakob
223
7. Fiscal decentralization and intergovernmental relations in Albania
David Sewell and Christine I. Wallich
251
8. Subnational fiscal decentralization in Ukraine
Jorge Martinez-Vazquez, Charles E. McLure, Jr., and Sally Wallace
281

Page vi
9. Intergovernmental fiscal relations in the Russian Federation
Roy Bahl and Christine I. Wallich
321
10. Special issues in Russian federal finance: Ethnic separatism and natural resources
Charles E. McLure, Jr., Christine I. Wallich, and Jennie I. Litvack
379
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