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.
A 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.
In this video Jonas Frank, who has been heading the IGFT discussion, tells us what he would like the participants to take home:
NALAS 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.
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