Decentralization of the Socialist State logo The objective of this book is to provide a systematic review and analysis of intergovernmental fiscal issues and policies in seven countries in Eastern Europe and the former Soviet Union. Countries such as Hungary and Poland that have moved quite far down the path of local government reform and that may now be embarking on a "" second generation "" of reforms, as well as those that are only now beginning the process, such as Albania and Romania, are considered. The book covers the following: 1) a comparative overview of the nature of intergovernmental finance in transitional economies describing how these systems differ from those in market economies and elaborates on the need for a broader-than traditional framework for analyzing subnational finances in transition economies; 2) a discussion of how the Budapest municipal government is operating within Hungary ' s emerging intergovernmental system; 3) a discussion on Poland, which, like Hungary, is making important progress toward public sector reform; and 4) a review of Bulgaria, Romania, Albania, and Ukraine in which the reform of intergovernmental finance is at earlier stages. The book also takes a close look at recent developments in Russia. Each discussion in this book touches first on the traditional public finance areas of expenditure assignment, revenue assignment, and intergovernmental transfers. Then, those aspects that are outside the traditional framework of analysis in this field, including privatization, stabilization, and the social safety net, are addressed, with different emphasis in each country according to the importance of the issues in shaping the emerging intergovernmental and subnational fiscal structure.

Publisher: World Bank

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