PFM Board

Medium Term Expenditure Framework => Decentralisation => Topic started by: Glen Wright on March 23, 2016, 16:27:24 GMT

Title: Paternal versus Fraternal Approaches to Fiscal Transfers
Post by: Glen Wright on March 23, 2016, 16:27:24 GMT

Dear Colleagues:  I have been searching for a good discussion of the pros and cons of the paternal versus fraternal approaches to financing the fiscal transfers, but have been unable to find anything that looks at this issue in comprehensive summary.  I would be interested to get some opinions of these approaches and under what circumstances each would be appropriate.

Title: Re: Paternal versus Fraternal Approaches to Fiscal Transfers
Post by: FitzFord on March 24, 2016, 00:21:11 GMT

Glen,
I cannot think of a tidy focus on this issue. I think that the preference of one approach or the other, or a mixture of both is essentially a political one mixed with the local communities' capacities, political strength and wealth. I think it would be interesting to thinking about how the US, the UK, EU, Hungary, Uganda and South Africa designed their structure.
Fitz.