Fiscal federalism is the analysis of the problems that give rise to, and arise from, the existence of more than one level of government within the same geographical area. Robert inman the wharton school boadway and shah have provided the new definitive treatment of the principles of fiscal federalism against a rich background of the actual practice of fiscal decentralization in both industrialized and developing countries. A comparative introduction anderson, george on amazon. A brief tour through the history of nigerian federalism reveals sharp turning points in federal and regional fiscal relations, based alternately on principles of derivation, national interest, and the centripetal forces of military governments3. Current structure of fiscal federalism in nigeriaa legacy of military rule 4. Introduction it is a great honour and a privilege to be invited to deliver the kale memorial lecture at the gokhale institute. Providing both a detailed theoretical examination and fresh case studies, it clearly distinguishes between federation, a particular kind of state, and federalism, the thinking that drives and promotes it.
View comparative federalism research papers on academia. Topics covered include the distribution of taxation powers among different levels of government. Comparative perspectives, mcgillqueens university press, montreal, 342. Like the political concept of democracy, fiscal federalism is considered to be an optimal institutional arrangement for the provision of public services. As originally developed by musgrave 1959 and oates 1972, the theory of fiscal federalism con. Federalism, especially in large or diverse countries, can also improve service delivery.
The analytical literature on fiscal federalism, right from the seminal paper by charles tiebout 1959 has emphasised the gains from fiscal decentralisation. Fiscal federalism is part of broader public finance discipline. The survey is not restricted to the traditional federal countries, such as the united states and switzerland, but also includes traditional. Fiscal federalism paperback george anderson oxford. Comparative fiscal federalism, second edition wolters. Topics covered include the distribution of taxation powers among.
The seven papers presented at that conference, and the comments of the discus sants, are contained in this volume. The main aim of the workshop on fiscal federalism and financial relations was to. The study has critically analysed the first generation theory and second generation theory of fiscal federalism. Lockwood 2006 has recently characterized this as the political economy approach to. Comparative perspectives leading scholars and practitioners examine constitutional design and taxing. Federalism is a means of ensuring peace, stability and mutual accommodation in countries that have territorially concentrated differences of identity, ethnicity, religion or language. Fiscal federalism, financial relations between units of governments in a federal government system.
A comparative introduction george anderson forum of federations a 259629 oxford university press. Fiscal federalism, vertical and horizontal imbalances, federal grants, ethnic federalism, economic growth, poverty. The major feature of the distribution of powers, which applies symmetrically to all 50 states, is the arrangement whereby the constitution lists subject matters delegated to the federal government and leaves fairly substantial. Concluding remarks 19 part one the original model chapter 2. It deals basically with the division of revenue raising power and expenditure responsibilities to multiple layers of governments formed by federalism. Such a system, however, is open to a great deal of duplication and confusion in. Second generation fiscal federalism 3 1 also in this approach is the work of congleton, kyriacou, and bacaria 2003, cremer and palfrey 2002, iaryczower, saiegh, and to mmasi 2000, jones, sanguinetti, and tomasi 1999, kenny and winer 2006. Us history for architects of europes fiscal union by c. In comparative terms, the united states is moderately noncentralized. A comparative introduction this concise introduction to the ways in which the worlds federations manage their finances. Federalism to decentralization cheryl saunders melbourne law school introduction the functions of government that a state performs can be decentralized in various ways and to varying degrees. The recent scholarship has made distinction between two generation of literature in fiscal federalism. This concise introduction to the ways in which the worlds federations manage their finances. Though the latter approaches the problem of fiscal federalism from different perspectives, it does not challenge but complements the former.
A comparative analysis provides a comprehensive survey of the distribution of the taxing authority among different levels of governments of a selection of countries. Randall henning and martin kessler european debates on reform of euroarea fiscal governance frequently refer to fiscal federalism in the united states. Perspectives on fiscal federalism world bank documents. Although federalism is likely to survive in nigeria, political leaders need to develop a culture of intergovernmental consultation and cooperation in order to solve the federations problems more peacefully and expeditiously. Coercive, cooperative, and collaborative federalism in. This chapter outlines some of the approaches that are most widely used and illustrates their use through case studies. Comparative federalism download ebook pdf, epub, tuebl, mobi.
Fiscal federalism is characterised by the fiscal relations between central and lower levels of government. Introduction a growing number of countries have adopted fiscal federalism in an effort to improve the performance of their public sector. Introduction fiscal federalism, under which provision of public goods is decentralized to subnational governments, allows public consumption levels to be tailored to suit the preferences of a heterogeneous population. Principles of fiscal federalism, in shah anwar ed, the practice of fiscal federalism. The subject of fiscal federalism is an extension and basic element of the concept of federalism. Introduction federalism as a system of governance is pragmatic, dynamic, utilitarian and evolving. A fragmented federal polity, oxford university press, new york. Fiscal federalism deals with the division of governmental functions and financial relations among levels of government.
To understand this, one needs to go back in time to gain an overview of these issues. Fiscal federalism and the taxation of nonrenewable resources. This chapter examines the fiscal aspects of federalism as enshrined in the indian constitution. Ross and wikstrom nelson, 2009, american intergovernmental relations. Bird university of toronto the analysis of the problems that give rise to, and arise from, the existence of more than one level of government within the same geographical area. An introduction provides students of political science as well as practitioners and scholars with a concise, jargonfree overview of the various forms of federal government found around the world as well as the basic principles, practices, benefits, and challenges characteristic of the federal form of government. Comparative fiscal federalism provides a fullscale comparative analysis of the tax jurisprudence of the judicial systems of the european union eu and the united states us. Principles of fiscal federalism 5 preferences in public services, political participation, innovation, and accountability. Fiscal federalism is concerned with the public finances of the various orders of government in a federal system. Not that simple in reality, but rather instances of the two principal parties having their preferences as to what policies and laws should be national and which ones. Federal countries differ a great deal in their choices specifically, how the division of fiscal powers is allocated among various orders and the associated fiscal arrangements. A comparative introduction is a concise introduction to the ways in which the worlds federations manage their finances.
The volume combines theoretical approaches with case studies and involves scholars from various disciplines, in order to provide a comprehensive analysis of. Comparative perspectives from canadian fiscal federalism olumide victor ekanade 0 1 2 recommended citation 0 redeemers university, ogun state nigeria 1 commons, other international and area studies commons, and the political economy commons 2 part of the african studies commons, comparative politics. Fiscal federalism in the united states queens university. A systematic inquiry, second edition is a uniquely comprehensive, analytic, and genuinely comparative introduction to the principles and practices, as well as the institutional. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. The source of this work is some basic dissatisfaction with. It gives an overview of the original structures of fiscal federalism in india, including assignments of spending and revenue and mechanisms and institutions for making transfers across different government levels. The recent scholarship has made distinction between two generations of literature in fiscal federalism. In recog nition of this fact, the national bureau of economic research spon sored a conference on fiscal federalism in april of 1987. Fiscal federalism and economic growth sciencedirect. A comparative introduction fiscalfederalismchapter7 fiscalfederalismchapter7 please consider the environment before printing pensez a lenvironnement avant dimprimer cette page.
The term was introduced by the germanborn american economist richard musgrave in 1959. Fifty years of fiscal federalism in india an appraisal. An analysis prakash chandra jha amity university rajasthan, jaipur abstract. For overviews of the literature on fiscal federalism, see wildasin 1986 and oates 1999. And it shows up in myriad ways which we often overlook. That is, it is manifest by the financial aspects of the devolvement of authority from the national to the regional and local levels. The subject of fiscal federalism is a central issue in political agendas and in the. More so for one like me, who cannot claim to be treated as an academic having spent the better part of my life in departments of government. Principles of fiscal federalism find, read and cite all the research you need on researchgate. Table of contents preface and acknowledgements chapter one. Fiscal federalism is in vogue in comparative studies because it is one goal of reforming policy in contemporary democracies.
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