Decentralisation in Indonesia.

This paper attempts to assess the extent of decentralisation efforts and their impact on various dimensions of the development process. We find relatively little "real" decentralisation (devolution): local governments have little tax autonomy and central priorities tightly constrain most f...

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Main Authors: Ranis, G, Stewart, F
Format: Journal article
Language:English
Published: 1994
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author Ranis, G
Stewart, F
author_facet Ranis, G
Stewart, F
author_sort Ranis, G
collection OXFORD
description This paper attempts to assess the extent of decentralisation efforts and their impact on various dimensions of the development process. We find relatively little "real" decentralisation (devolution): local governments have little tax autonomy and central priorities tightly constrain most funding from the centre. Indeed, increased revenue flows serve as a disincentive to modest local tax efforts, reduce the relative importance of locally controlled funds and thus retard real decentralisation. Central transfers for health, education and infrastructure have nonetheless significantly improved social and economic indicators. Greater local control over funds is found to lead to more expenditure on the social sectors (and within them on priority areas), and to increase spending on small scale locally oriented infrastructure. More decentralisation thus offers the potential for increased allocations to social and economic priorities, enhancing efficiency and equity within regions; but the promotion of national standards and equity across regions requires central government action.
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spelling oxford-uuid:aa2931b2-3453-4269-a728-2a87c66693e22022-03-27T03:13:28ZDecentralisation in Indonesia.Journal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:aa2931b2-3453-4269-a728-2a87c66693e2EnglishDepartment of Economics - ePrints1994Ranis, GStewart, FThis paper attempts to assess the extent of decentralisation efforts and their impact on various dimensions of the development process. We find relatively little "real" decentralisation (devolution): local governments have little tax autonomy and central priorities tightly constrain most funding from the centre. Indeed, increased revenue flows serve as a disincentive to modest local tax efforts, reduce the relative importance of locally controlled funds and thus retard real decentralisation. Central transfers for health, education and infrastructure have nonetheless significantly improved social and economic indicators. Greater local control over funds is found to lead to more expenditure on the social sectors (and within them on priority areas), and to increase spending on small scale locally oriented infrastructure. More decentralisation thus offers the potential for increased allocations to social and economic priorities, enhancing efficiency and equity within regions; but the promotion of national standards and equity across regions requires central government action.
spellingShingle Ranis, G
Stewart, F
Decentralisation in Indonesia.
title Decentralisation in Indonesia.
title_full Decentralisation in Indonesia.
title_fullStr Decentralisation in Indonesia.
title_full_unstemmed Decentralisation in Indonesia.
title_short Decentralisation in Indonesia.
title_sort decentralisation in indonesia
work_keys_str_mv AT ranisg decentralisationinindonesia
AT stewartf decentralisationinindonesia