Peer exchange

Based on the country contexts of Bénin, Somalia, Mali, Burundi, Bangladesh and Nepal – and from their own background – participants reflected on what kind of objectives and design elements of fiscal transfer are particularly important, what kind of implementation challenges are to be met, and what role SDC could take up with regard to transfers. The country examples triggered a lifely exchange of experience and new ideas.

BEN_0049-2A panel discussion among and with the facilitators of the previous group discussions concluded the day. Experience supporting financial transfer systems in fragile and more stable contexts was shared. It was mentioned, among other things, that the debate on financial transfers cannot be separated from the transfer of functions in order to avoid the mismatch of responsibilities and resources at the various levels. Several discussants also mentioned that financial fransfers have to be assessed in the light of improving accountability and thus closely monitored. Some debate arose around the question whether SDC should insist that supported transfers are made under certain conditions (inclusion, gender). In fragile situations the financial transfers should allow for delivering services at the local level, thus building trust and credibility and contribute to state-building. To conclude, it was also reminded that transfer systems have to be addressed in a systemic way – as one aspect of SDC’s contribution to good governance.

pdf-xsYou can download the discussion boards here.

Fiscal Decentralisation – background documents

pdf-xsBoadway, Robin; Shah, Anwar (eds). 2007. Intergovernmental Fiscal Transfers, Principles and Practice. Public Sector Governance and Accountability Series, World Bank, Washington DC.

pdf-xsLitvack, Jennie. 1998. Decentralization Briefing Notes, World Bank, Washington DC.

pdf-xsLOGIN Asia. 2014. Distance Learning Programme on Fiscal Decentralization. Delhi.

pdf-xsSDC. 2013. Learning Book, Sustainable Local Government Finances, Berne.

pdf-xsVaillancourt, François; Roch-Hansen, Catherine. 2012. An Introduction to Transfers. Municipal Finance E-Learning Course, World Bank, Washington DC.

pdf-xsNALAS Report: Fiscal decentralization indicators for South-East Europe: 2006-2013, Network of Associations of Local Authorities of S-E Europe, January 2015
For further reading visit the NALAS webpage.

Fiscal Decentralisation – learning objectives

Day 4 of the Face-to-Face Meeting: Learning Objectives and Expected Results

Intergovernmental Fiscal Transfer Schemes

Intergovernmental fiscal transfer schemes (IGFTS) are a cornerstone of multi-level governance systems in many countries. Often they constitute the bulk of a subnational government’s total resources. Transfers are a sensitive fiscal instrument where several design elements need to be brought in line in order to achieve the desired outcome. Continue reading Fiscal Decentralisation – learning objectives