Decentralization and Reform in Africa

This work examines the impact of fiscal decentralization on subnational resource mobilization capacity, and on macroeconomic stability, in four African countries. Field research conducted in Benin, Burkina Faso, Ghana and Mali, constituted the basis for a rigorous and detailed examination of the decentralization process in each country. One of the findings is that increased subnational tax autonomy significantly reduces the size of the central government and improves the central government budget balance in the sample countries. Recommendations are: the design and implementation of decentralization mechanisms must be based on the principles of stability, transparency, accountability, and equity; frequent dialogue between the central and sub-national governments, and an active association and cooperation of local and regional levels of government in the formulation of macroeconomic objectives will improve the chances of successful decentralization programmes; and that authorities must heighten their campaigns to educate local populations on decentralization reforms.Full and educated participation of all citizens at the grassroots level is critical to the success of decentralization programmes.