decentralization

Problems with Fiscal Decentralisation: Peru’s Canon System

October 5, 2016
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The funding of sub-national government as part of strategies to decentralise administrative structures is usually considered as a condition for success.  Without a degree of fiscal autonomy, local government is unable to exercise latitude in the choice of spending priorities that comes with the delegation of authority and responsibility.  However, as the recent experience of Peru shows, fiscal decentralisation is far from problem-free, especially when democratic, participative and accountable layers of government are largely missing.

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