Fiscal Decentralisation and Corruption - A Brief Overview of the Issues

A frequently used argument for fiscal decentralisation is that it increases accountability in the spending and raising of public funds, by moving government closer to the people. At the same time, there are concerns that fiscal decentralisation in practice may lead to a decentralisation of corruption. This issue paper summarises available evidence on fiscal decentralisation and corruption. It starts off with a discussion of issues and proceeds to look at policy implications.