Indonesia - Fiscal Decentralization: A Review of Concepts and Applications
Client:	-
Funding Source:	-
Type of Grant:	Teaching
Period Funded:	May 2009
Location:	Andrew Young School of Policy Studies, Georgia State University
Amount:	-

Project Summary

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Project Summary:

This course on Fiscal Decentralization: A Review of Concepts and Application for Indonesia provides an introductory overview of the theoretical dimensions of intergovernmental fiscal relations, with a focus on applications for fiscal policy and decentralization reforms in Indonesia.

Fiscal decentralization and local governance play an increasingly important role in assuring sound public policy and democratic governance around the world. Fiscal decentralization reforms are being pursued in countries around the world in order to enhance the efficiency with which government services are provided. By yielding greater functional (expenditure) responsibilities to regional and local governments, the public sector can be more flexible in response to variations in regional and local needs and demands for public services. In addition, by giving local governments real responsibility for the delivery of local government services and by allowing local governments to raise own source revenues, local communities are better able to hold their local governments accountable for the services that they deliver. Funding of subnational governments with formula-based intergovernmental transfers can further enhance the equity and transparency of the system of intergovernmental fiscal relations. As a result, decentralization of the public sector also increases citizen participation in the governance process.

In addition to exploring the conceptual underpinnings of fiscal decentralization reform, the course connects sound principles of decentralization reforms to specific policy issues relevant to the current situation in Indonesia. The purpose of the course is to provide technical expertise on decentralization and good governance to inform and advance participants on the transition process, analyze key areas for intervention, and identify the way forward for decentralization planning and implementation. Discussion sessions each day enable participants to integrate their existing knowledge of the current issues in Indonesia with the newly acquired knowledge on fiscal policy and fiscal decentralization.

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