The Vertical Assignment of Functions and Expenditure Responsibilities (original) (raw)
This working paper provides both a conceptual and practical understanding of “how to” effectively assign functional responsibilities and authorities to different levels of local government (or to different tiers of local administration) in the context of multilevel governance systems. In doing so, it establishes a common vocabulary in discussing functional assignment issues; reviews the concept of subsidiarity; unbundles and dissects the concept of government functions; and considers the role of decentralization as a mechanism to improve accountability and pro-poor service delivery. Consistent with the “second generation theory” of intergovernmental finance, this working paper also tries to place the vertical assignment of functions and expenditure responsibilities in a political economy context that recognizes that central and local political decision-makers do not necessarily try to maximize the well-being of their constituents; instead, the assignment of functions and responsibilities may be shaped by the personal and institutional motivatations of political and institutional decisionmakers.
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