Russia's Transition to a New Federalism

by Martinez-Vazquez, Jorge; Boex, Jameson

• ISBN13: 9780821348406
• ISBN10: 082134840X
• Format: Paperback
• Copyright: 2000-10-01
• Publisher: World Bank

Summary

WBI Learning Resources discuss issues in economic development policy and lessons from experience in a way that can be understood by non-specialists. This is the first in a series that will look at governance and decentralisation and looks at the implications of federalism on the growth of Russia's economy. In particular it looks at the impact of fiscal decentralisation as the way intergovernmental finances are resolved influences the transition and macroeconomic stability.

Table of Contents

Foreword	vii
Preface	ix
Acknowledgments	xiii
The Dynamics of Decentralization in the Russian Federation	1	(10)
The Forces behind Decentralization in the Russian Federation	1	(4)
A Historical Overview of Intergovernmental Fiscal Relations, 1992-98	5	(2)
The Role of Politics in the Decentralization Process	7	(2)
Dimensions of Fiscal Decentralization in the Russian Federation	9	(2)
Expenditure Responsibilities	11	(22)
How Have Expenditures Been Assigned?	11	(8)
How Has the System Performed?	19	(5)
Pending Policy Issues in Expenditure Assignments	24	(9)
Revenue Assignments and Tax Administration Issues	33	(22)
How Have Revenues Been Assigned?	33	(6)
Trends in Revenue Collections	39	(4)
How Has the System Performed?	43	(7)
The Role of Perverse Incentives and Soft Budget Constraints	50	(1)
The Role of Tax Administration	51	(1)
Pending Reforms in Revenue Assignments	52	(3)
The System of Transfers	55	(20)
Evolution of the Transfer System	55	(3)
The Current System of Transfers	58	(3)
How Has the Transfer System Performed?	61	(7)
Pending Policy Agenda for Transfer Reform	68	(7)
Subnational Borrowing, Debt, and Financial Controls	75	(8)
Evolution of the Legal Framework for Borrowing	75	(1)
Analysis of Subnational Deficits and Debts	76	(4)
Pending Policy Agenda for the Reform of Subnational Borrowing	80	(3)
Implementing Reform	83	(6)
Piecemeal Versus Unified Reform	83	(1)
Uniform Versus Asymmetric Federalism and Addressing Fiscal Disparities	84	(1)
Regional Compliance with Federal Laws	85	(1)
Communications between Federal and Regional Governments	86	(1)
Determining the Form of Fiscal Federalism	86	(3)
Postscript: Recent Reforms in Intergovernmental Relations in the Russian Federation	89	(8)
Reform of the Vertical Power Structure	90	(1)
Expenditure Assignments and Budgetary Responsibilities	91	(1)
Revenue Assignments and Tax Reforms	92	(2)
Changes in Intergovernmental Transfers	94	(1)
Concluding Remarks	95	(2)
References	97