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- Title
WHAT IS IN IT FOR THE POOR? EVIDENCE FROM FISCAL DECENTRALIZATION IN VIETNAM.
- Authors
Hoang-Phuong Nguyen
- Abstract
Like other developing countries, Vietnam has attempted to push for greater fiscal decentralization in the hope of a more efficient delivery of social services to targeted citizens. The fiscal decentralization initiative is encouraging and merits pursuit, but the present study however, shows that a misstep in the decentralization process can discriminate disproportionately against the poor. Specifically, an increase in the sub-provincial share of the total provincial expenditures is predicted to bring about an appreciable decrease in the lowest-quintile average monthly income. We suggest that the Vietnamese government require provinces to adopt pro-poor allocation norms rather than reclaiming its control over the provincial expenditure assignment. This paper's empirical findings sound a note of considerable caution that other developing countries should exercise in their fiscal decentralization efforts to avoid creating unintended consequences for the poor.
- Subjects
VIETNAM; SOCIAL services financing; ECONOMIC conditions in developing countries; VIETNAMESE economy; VIETNAMESE politics &; government; DECENTRALIZATION in government
- Publication
Journal of Public & International Affairs, 2008, Vol 19, p69
- ISSN
1070-521X
- Publication type
Article