Fiscal Decentralization : Experiences of Selected Countries

"The objective of this paper is therefore to investigate the experiences of three selected countries - the United States of America, Brazil and Russia - and draw appropriate lessons for Ethiopia. The rationale for selecting these countries is straightforward. USA is one of the pioneers of fiscal decentralization and has ample and deep-rooted experiences. The system of inter-governmental finance in this country has evolved gradually much like its market and political institutions. Hence, the examination of its fiscal system is appropriate. The lessons that Ethiopia can draw from the efforts of a developing country such as Brazil can also be significant. Russia had experienced an excessively centralized system of government, and is now in transition to greater decentralization The challenges that Russia is facing in instituting a new system will undoubtedly throw some light for Ethiopia."