{
  "title": "Can Fiscal Decentralization Strengthen Social Capital?",
  "publication": "IMF Working Papers, July 1, 2000",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/30/can-fiscal-decentralization-strengthen-social-capital-3681",
  "canonical": "https://www.imf.org/en/publications/wp/issues/2016/12/30/can-fiscal-decentralization-strengthen-social-capital-3681",
  "overlayPath": "/en/publications/wp/issues/2016/12/30/can-fiscal-decentralization-strengthen-social-capital-3681/index.md",
  "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.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- 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.\n- 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.\n- Publication date: July 1, 2000."
    },
    {
      "heading": "Key findings and evidence",
      "content": "- Fiscal decentralization is associated with increases in social capital measures such as interpersonal trust, civic cooperation, and social cohesiveness.\n- Evidence is cross-country, covering both developing and developed countries.\n- The paper argues that strengthening local assignment of expenditures and revenues can complement institutional reforms aimed at improving governance and growth."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Integrate fiscal decentralization into second-generation reforms to strengthen social capital.\n- Assign expenditure functions and revenue sources to lower levels of government where appropriate to stimulate interpersonal trust and civic cooperation."
    },
    {
      "heading": "Subjects and keywords",
      "content": "- Subject: Expenditure, Fiscal federalism, Fiscal policy, Macro-fiscal analysis, Public debt, Revenue administration\n- Keywords: civic cooperation, community member, decentralization, decentralization indicator, expenditure share, fiscal decentralization, fiscal federalism, governance, Macro-fiscal analysis, social capital, WP\n\nInternational Monetary Fund. \"Can Fiscal Decentralization Strengthen Social Capital?\", IMF Working Papers 2000, 129 (2000).\n\n---\n\n Content in this bundle\n\n- Can Fiscal Decentralization Strengthen Social Capital? - WP/00/129\n  - Can Fiscal Decentralization Strengthen Social Capital? - WP/00/129 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Can Fiscal Decentralization Strengthen Social Capital? - WP/00/129 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/can-fiscal-decentralization-strengthen-social-capital-3681"
    }
  ],
  "bullets": [
    "[Markdown version](/en/publications/wp/issues/2016/12/30/can-fiscal-decentralization-strengthen-social-capital-3681/index.md)",
    "[Structured JSON version](/en/publications/wp/issues/2016/12/30/can-fiscal-decentralization-strengthen-social-capital-3681/index.json)",
    "[Bundle manifest](/en/publications/wp/issues/2016/12/30/can-fiscal-decentralization-strengthen-social-capital-3681/bundle-manifest.json)",
    "Published: July 1, 2000",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451855104.001",
    "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.",
    "Publication date: July 1, 2000.",
    "Fiscal decentralization is associated with increases in social capital measures such as interpersonal trust, civic cooperation, and social cohesiveness.",
    "Evidence is cross-country, covering both developing and developed countries.",
    "The paper argues that strengthening local assignment of expenditures and revenues can complement institutional reforms aimed at improving governance and growth.",
    "Integrate fiscal decentralization into second-generation reforms to strengthen social capital.",
    "Assign expenditure functions and revenue sources to lower levels of government where appropriate to stimulate interpersonal trust and civic cooperation.",
    "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",
    "**Can Fiscal Decentralization Strengthen Social Capital? - WP/00/129**"
  ],
  "related": [
    {
      "title": "Can Fiscal Decentralization Strengthen Social Capital? - WP/00/129",
      "role": "document",
      "sourceUrl": "https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2000/_wp00129.pdf",
      "summary": {
        "path": "/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2000/_wp00129.pdf.md",
        "mime": "text/markdown"
      },
      "binary": {
        "path": "/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2000/_wp00129.pdf",
        "mime": "application/pdf"
      }
    }
  ],
  "alternates": {
    "markdown": "/en/publications/wp/issues/2016/12/30/can-fiscal-decentralization-strengthen-social-capital-3681/index.md",
    "json": "/en/publications/wp/issues/2016/12/30/can-fiscal-decentralization-strengthen-social-capital-3681/index.json",
    "bundleManifest": "/en/publications/wp/issues/2016/12/30/can-fiscal-decentralization-strengthen-social-capital-3681/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-17T05:34:16.731Z"
}
