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.
1. Decentralization: definitions, theories and debate.- 1. Introduction.- 2. Types of Decentralization.- 3. The Theoretical Debate on Decentralization.- 4. Can Decentralization Destabilize Economic Reform?.- 2. The General Structure of Decentralization in Mali and Ghana.- 1. Overview.- 2. MALI.- 3. GHANA.- 3. The General Structure of Decentralization in Burkina Faso and Benin.- 1. BURKINA FASO.- 2. BENIN.- 4. The General Structure of Fiscal Decentralization in Four African Countries.- 1. General Considerations.- 2. Designing a Fiscal Decentralization Program.- 3. The Role and Impact of International Development Aid.- 4. The Structure of Fiscal Decentralization in Mali.- 5. The Structure of Fiscal Decentralization in Ghana.- 6. The Structure of Fiscal Decentralization in Burkina Faso.- 7 The Structure of Fiscal Decentralization in Benin.- 5. Empirical Evidence on Fiscal Decentralization in Four African Countries.- 1. Understanding the Data.- 2. Quality Indicators of Fiscal Decentralization.- 3. The Quantitative Indicators.- 6. The Macroeconomic Impacts of Fiscal Decentralization.- 1. General Considerations.- 2. Statistical Evidence on Intergovernmental Coordination Failures.- 3. Analyzing the Data.- 7. Conclusions and Recommendations.- 1 On the Fiscal Strength of Local Communities.- 2 Some Suggestions on Improving Intergovernmental Fiscal Coordination.- 3 On Local Government Borrowing Capabilities.- 4. The importance of Associating Local Governments to Central Government Decision-making Process.- 5. Final Remarks.- List of Abbreviations.- References.
