CEU eTD Collection (2007); Khmaladze, Irakli: Should Vertical Fiscal Imbalance be equalized? Does fiscal decentralization facilitate Economic Growth? Lessons for Georgia

CEU Electronic Theses and Dissertations, 2007
Author Khmaladze, Irakli
Title Should Vertical Fiscal Imbalance be equalized? Does fiscal decentralization facilitate Economic Growth? Lessons for Georgia
Summary Among political scientists and economists there is no consensus how decentralization influences the economic growth, poverty and other indicators of development. Some scholars argue that there is no direct relationship between decentralization and growth. Others claim that the relationship is positive. Part of academia thinks that decentralization negatively affects economic development.
At the same time decentralization reforms are on the policy agenda in the post-Soviet Union states, where during previous regime the power was very centralized. In the most countries decentralization reforms are considered as the means for improved governance. It is believed that reforms can increase of service provision efficiency and enhance citizens’ participation in the political processes.
The aim of the MA thesis is to assess the outcomes of decentralization in transition countries and infer the lessons for post Soviet Union and particularly for Georgia. It intends to study how economic rationales of decentralization are applied in the post-Communist arena. The paper tries to answer the question: does decentralization leads to economic growth or not and which factors should be taken into consideration during the implementation of the reforms.
Supervisor George Guess, Valentina Dimitrova-Grajzl
Department Public Policy MA
Full texthttps://www.etd.ceu.edu/2007/khmaladze_irakli.pdf

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