Integration, decentralization, taxation, and revenue sharing : good governance, sustainable fiscal policy and poverty reduction as peace-keeping strategies

  • The paper tries to shed some light on the problems of centralization and decentralization within an economic union and the federal member states. Integration and decentralization are not opposite policy strategies but both meaningful if the single public goods and services supplies are analyzed in more detail. Both strategies doubtlessly have advantages, which can be realized if the manifold possibilities are combined in an efficient approach of good governance. Best practice approaches in inter- or supra-national integration, fiscal federalism and taxation do exist and have to be successfully implemented. Obviously such a modern fiscal policy has to be accompanied by an appropriate monetary policy, which in an economic union has to be carried out by an independent central bank as one of the necessary countervailing powers in a democratic setting. A modern fiscal policy strategy efficiently controls budget deficits, which naturally have to be limited to finance reliable public investments. Such strategy has to be safeguarded through mThe paper tries to shed some light on the problems of centralization and decentralization within an economic union and the federal member states. Integration and decentralization are not opposite policy strategies but both meaningful if the single public goods and services supplies are analyzed in more detail. Both strategies doubtlessly have advantages, which can be realized if the manifold possibilities are combined in an efficient approach of good governance. Best practice approaches in inter- or supra-national integration, fiscal federalism and taxation do exist and have to be successfully implemented. Obviously such a modern fiscal policy has to be accompanied by an appropriate monetary policy, which in an economic union has to be carried out by an independent central bank as one of the necessary countervailing powers in a democratic setting. A modern fiscal policy strategy efficiently controls budget deficits, which naturally have to be limited to finance reliable public investments. Such strategy has to be safeguarded through modern methods of budgeting and fiscal planning. Modern public management with a clear code of conduct for the government officials ensures corruption free administration.show moreshow less

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Metadaten
Author:Hans-Georg Petersen
URN:urn:nbn:de:kobv:517-opus-27367
ISBN:1864-1431
Series (Serial Number):Finanzwissenschaftliche Diskussionsbeiträge / Lehrstuhl für Finanzwissenschaft, ISSN 1864-1431 (Bd. 57)
Document Type:Book
Language:German
Date of Publication (online):2008/12/22
Year of Completion:2008
Publishing Institution:Universität Potsdam
Release Date:2008/12/22
Tag:centralization; decentralization; ethnic differences; fiscal federalism; fiscal planning; sustainable fiscal policy; tax reform
Organizational units:Wirtschafts- und Sozialwissenschaftliche Fakultät / Wirtschaftswissenschaften
Dewey Decimal Classification:3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft
JEL Classification:F International Economics / F1 Trade / F15 Economic Integration
F International Economics / F5 International Relations and International Political Economy
H Public Economics / H2 Taxation, Subsidies, and Revenue
H Public Economics / H7 State and Local Government; Intergovernmental Relations
H Public Economics / H8 Miscellaneous Issues
N Economic History / N4 Government, War, Law, and Regulation
O Economic Development, Technological Change, and Growth / O2 Development Planning and Policy
Licence (German):License LogoKeine Nutzungslizenz vergeben - es gilt das deutsche Urheberrecht
Notes extern:
Paper prepared for the GTZ-Director’s Seminar for the General Secretariat of the EAC on Tax Harmonization and Regional Integration Arusha/Tanzania, April 23/24, 2008
For a print copy please contact Mrs. Gericke (dgericke@uni-potsdam.de). Originally published at http://lsfiwi.wiso.uni-potsdam.de/publikationen/diskuss/index-diskuss.html
RVK-Classification: QL 000 , QL 200