Can Fiscal Decentralization Strengthen Social Capital?

Publication Date:

July 1, 2000

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

Countries where social and political institutions stimulate interpersonal trust, civic cooperation, and social cohesiveness tend to have more efficient governments, better governance systems, and faster growth. This paper provides cross-country evidence, based on a sample of developing and developed countries, that fiscal decentralization—the assignment of expenditure functions and revenue sources to lower levels of government—can boost social capital and therefore be integrated into second-generation reforms.

Series:

Working Paper No. 2000/129

Subject:

Expenditure Fiscal federalism Fiscal policy Macro-fiscal analysis Public debt Revenue administration

English

Publication Date:

July 1, 2000

ISBN/ISSN:

9781451855104/1018-5941

Stock No:

WPIEA1292000

Pages:

30

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