Can Fiscal Decentralization Strengthen Social Capital?
July 1, 2000
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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.
Subject: Expenditure, Fiscal federalism, Fiscal policy, Macro-fiscal analysis, Public debt, Revenue administration
Keywords: civic cooperation, community member, decentralization, decentralization indicator, expenditure share, fiscal decentralization, fiscal federalism, governance, Macro-fiscal analysis, social capital, WP
Pages:
30
Volume:
2000
DOI:
Issue:
129
Series:
Working Paper No. 2000/129
Stock No:
WPIEA1292000
ISBN:
9781451855104
ISSN:
1018-5941
