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In this book ¿Sector Decentralization: A Critical Analysis¿, the author draws experiences and lessons in some countries as a way of providing insights on sector decentralization in Zambia. It establishes guidance for a common understanding of the design of local government systems which is essential in any given reforms, therefore, sector decentralization reforms require modifying such systems, and can be shaped by the above underlying objective. In fact, a political rhetoric of ¿decentralization design and strategy¿ has been widely accepted as there is no one single blue print on functional analysis and assignments that works well in all cases as a result, most countries carry out a review of function assignment & responsibilities to gain clarity of functions to be delegated or devolved to Local Governments. The author tackles difficult and important issues on the implementation of the sector decentralization. It can be argued that the unpacking and sequencing of policies to a certain extent may depend on the institutional design and strategy of sector decentralization. The book highlights some opportunities and challenges by drawing experiences and lessons from other countries.
Neste livro, o autor faz uma análise das implicações de uma maior autonomia no Acordo de Financiamento Intergovernamental na Papua Nova Guiné. Um dos principais efeitos de uma maior autonomia é a incapacidade dos Governos Subnacionais (GSN) de obterem receitas próprias e os factores que contribuem para tal, bem como o impacto de quaisquer limites à autonomia fiscal, ou seja, as receitas geradas internamente. A Papua-Nova Guiné tem um sistema de Governos Provinciais (PG) com uma disposição institucional que não é única. A secção 187G da Constituição da Papua-Nova Guiné prevê claramente a criação de governos provinciais. É preciso compreender que a política da Papua-Nova Guiné aumenta a rivalidade entre os políticos nacionais e provinciais, o que muitas vezes mina os princípios da governação local e da descentralização. Isto, por sua vez, fornece argumentos a favor ou contra as reformas de descentralização na PNG. Isto explica a natureza fragmentada e instável da política que, até certo ponto, criou um apoio político subjacente a uma maior autonomia provincial. O livro tem como objectivo lançar luz sobre as implicações de uma maior autonomia a partir de um argumento de Política Fiscal Intergovernamental.
This book is intended to contribute to the policy debate on the decentralization and integration described as Sunshine Model in Papua New Guinea. This system seeks to integrate best practice on decentralization reforms from post-independence era to existing arrangements within three levels of government. The author submits that the book will inform deliberations and decisions about policies and programmes on decentralization by developing and broadening shared understanding of this concept. The setup of decentralization and integration reforms can be attributed to a cross-breed of delegation, deconcentration, devolution and privatization approach which also pursues the modernization of government structures and systems for improved service delivery. The focal point for service delivery is the district level and local development initiatives are driven by ¿Districts as service and growth centres¿. For this reason, to contextualize this discussion in this book, it is important to understand that the sunshine model has drawn some attributes from a territorial concept and approach to local development, which is based on the principles of synergy and partnership between stakeholders.
In this book, the author undertakes a review of the issue of greater autonomy implications on the Intergovernmental Financing Agreement in Papua New Guinea. One of the key effects of greater autonomy is the inability by the Subnational Governments (SNGs) to raise revenue own source revenue and the factors contributing to that, as well as the impact of any limits on the fiscal autonomy i.e., internally generated revenue. PNG has a system of Provincial Government (PG) with an institutional arrangement which is not a one size fits all. According to section 187G of the constitution of PNG, it clearly provides for the establishment of PG. It must be understood that PNG politics supercharges the rivalry between national and provincial politicians which often undermines the principles of local governance and decentralization. This in turn provides arguments for or against decentralization reforms in PNG. This explains the fragmented and unstable nature of the politics which has to some extent created underlying political support for greater provincial autonomy. The book is aimed at shedding light on implications of greater autonomy from an argument of Intergovernmental Fiscal Policy.
It is widely debated that there has been a growing interest in the public policy discourse that the central government allocation to local government has failed to fix the fiscal imbalance (vertical gap and horizontal gap) between rural and urban councils¿. After a thorough review of international best practice on the principles in the design of a formula based grant system, the Local Government Equalization Fund (LGEF) is a good step towards a more comprehensive intergovernmental fiscal transfer system. It is not only the question of how much of the public revenues should be allocated to local governments in terms of the size of the pool, allocation criteria and distribution approach. The key is to establish a comprehensive financing strategy that balances own local generated revenues within the four pillars of fiscal decentralization: revenue assignment, expenditure assignment, intergovernmental fiscal transfers and local government borrowing powers. Many studies on local government financing argues that providing adequate grants to the councils¿ cannot fully deal with horizontal imbalance between urban and rural ones in the absence of a comprehensive local government financing.
Public finance affects developing economies in many different ways. However, also public finance policies do affect key sectors of the economy in many different ways. This is true especially that the economic problems facing the developing countries are extremely difficult to address due to the declining fiscal capacity. It can be highlighted that most developing economies should bring public expenditure closely to the public revenue to ensure that fiscal deficits are in tandem with other macroeconomic objectives and policy direction. Experience has shown that public finance policy reforms in most developing economies have not corrected the free market failures. In real terms, public finance policies should be designed on the basis of promoting a stable economic growth and development. It can be argued that there is a greater desire among the developing countries to increase their productivity so that the people can attain substantially a better quality of life.Particularly, in most developing economies fiscal space and how to achieve sustainability remains a major challenge to public finance. Public finance is an important sector of finance and economics for the entire spectrum.
A philosophy of development in the African context is all about the processes by which the African countries can create and recreate themselves and their sustainable life in order to realize higher levels of civilization but on the premise of their own choices and values. The philosophy of 'development' is so controversial on the continent of Africa; especially that it is considered as a way of perpetuation of poverty and underdevelopment by the Western capitalist states. It is important to highlight that in most African nations the development discourse is driven on the platform of a comprehensive literature from the western capitalist that has remained static as the philosophy of development keeps evolving as people and society develop.The economic growth rates due to industrialization has not in anyway moved the poor from poverty and underdevelopment even with the ¿trickle-down¿ theories of redistribution of the benefits of development and the need for structural adjustment programmes towards growing concerns for ¿human development. Since the 1990s, both the theory and practices of development have evolved over time as the debate and paradigm remain critically contentious.
Most experts argue that unstable macroeconomic conditions of SSA region have contributed to increase in poverty, inequality and unemployment. In fact, many economic prospects of developing countries have actually declined drastically over the last 30 years. This points to the argument that fiscal stabilization and adjustments measures have failed Africa development agenda. The evidence is alarming that poverty remains quite high in Africa for both the rural and urban population.Ideally, Africäs agenda on fiscal stabilization and adjustments reforms has witnessed weaker and stagnated growth due to tough global economic environment which has not really improved most regions of Africa. Many political analysts argue that there can be no meaningful growth rate in the midst of low global growth, weak global trade, and low commodity prices.This gives an understanding that fiscal stabilization and adjustments have been hampered by poor macroeconomic policy framework in most regions of Africa. There is obviously a clear and usually desirable connection between macroeconomic framework and fiscal stabilization and adjustments measures declined economic activities significantly over the time.
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