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With rapid urbanisation and the pressure on urban areas for service delivery, the role of urban local governments is undoubtedly becoming important and, here, their financial capacity can hold the key. At the same time, there are several issues in urban governance that need to be addressed yet. Delegation of decision making powers to urban local bodies (ULBs), which are traditionally considered as a part of the system of State government and acting on behalf of it, is one of them. The constitutional mechanisms like inter-governmental fiscal transfers were an attempt to reduce the gap of ULBs, but they were not effective in implementation at ground. It has become imperative now to understand the financial position of ULBs in order to move forward with the new means of fund flow. This paper presents a cross sectional analysis of the finance of 27 ULBs in North 24 Parganas District of West Bengal, India in terms of their financial base and its adequacy vis-à-vis norms, and their revenue and expenditure performance. Using certain ratios, the relative performance of municipalities on dependency measures was also assessed. The implications of finances of ULBs, in terms of raising resources, improving inter-governmental transfers and charting new mechanisms are also discussed. Lastly, an approach has been made to develop an index, i.e. Urban Governance Index (UGI) to a better understanding of the per-capita expenditure scenario of ULBs.

With rapid urbanisation and the pressure on urban areas for service delivery, the role of urban local governments is undoubtedly becoming important and, here, their financial capacity can hold the key. At the same time, there are several issues in urban governance that need to be addressed yet. Delegation of decision making powers to urban local bodies (ULBs), which are traditionally considered as a part of the system of State government and acting on behalf of it, is one of them. The constitutional mechanisms like inter-governmental fiscal transfers were an attempt to reduce the gap of ULBs, but they were not effective in implementation at ground. It has become imperative now to understand the financial position of ULBs in order to move forward with the new means of fund flow. This paper presents a cross sectional analysis of the finance of 27 ULBs in North 24 Parganas District of West Bengal, India in terms of their financial base and its adequacy vis-à-vis norms, and their revenue and expenditure performance. Using certain ratios, the relative performance of municipalities on dependency measures was also assessed. The implications of finances of ULBs, in terms of raising resources, improving inter-governmental transfers and charting new mechanisms are also discussed. Lastly, an approach has been made to develop an index, i.e. Urban Governance Index (UGI) to a better understanding of the per-capita expenditure scenario of ULBs.

En el marco de un enfoque de sostenibilidad débil, este documento evalúa si la renta generada por la minería del cobre se ha traducido en mejoras en infraestructura educativa, de salud y vial en las zonas extractoras del Perú, tanto a nivel distrital como departamental, entre los años 2004 y 2013. Los resultados muestran que las localidades extractoras sí han podido mejorar la infraestructura mencionada en mayor medida que el resto, aunque en magnitudes reducidas. Este efecto débil estaría ligado a la escasa visión de sostenibilidad del Estado y a un proceso de regionalización todavía en construcción. In the framework of a weak approach to sustainability, this paper evaluates whether the revenues earned on copper mining have translated into better educational, health, and roadway infrastructure in Peru's extractive zones, both at the district- and department-wide level, between 2004 and 2013. The results reveal that the infrastructure in places that are home to the extractive industries has indeed improved to a greater degree than in other locations, but only on a small order of magnitude. This weak effect is tied to the State's shaky vision of sustainability and the fact that the regionalization process in Peru is still under way. Dans le cadre d’une approche de durabilité faible, ce document évalue si le revenu généré par l’extraction minière du cuivre a abouti à des améliorations en infrastructure éducative, sanitaire et routière dans les zones extractives du Pérou, tant au niveau des districts que des départements, entre les années 2014 et 2013. Les résultats montrent que les localités extractives ont eux-mêmes amélioré l’infrastructure évoquée en plus grande mesure que le reste, quoique dans des moindres magnitudes. Cet effet faible serait lié à une vision étroite de durabilité de l’État et a un processus de régionalisation encore en construction. Como parte de uma abordagem pautada na sustentabilidade fraca, este artigo avalia se a renda gerada pela mineração de cobre tem resultado em melhorias na infraestrutura educacional, saúde e estradas em áreas extrativistas do Peru, tanto a nível distrital como departamental, entre 2004 e 2013. Os resultados mostram que os locais de extração sim puderam melhorar a infraestrutura mencionada mais que os demais locais, embora em pequenas quantidades. Este efeito fraco estaria ligado à visão limitada da sustentabilidade do Estado e a um processo de regionalização ainda em construção. 本文从薄弱的可持续性发展视角评估在2004-2013年间, 秘鲁矿业提取区域采铜业的收益是否反应在教育基础设施、人民健康和交通方面。研究结果表明铜矿提取区域能够改善上述区域基础设施条件, 虽然改善程度较小。这一较弱的效果与国家层面对可持续发展不够重视有关, 也与尚在形成的区域性过程有关。

Fiscal equalisation refers to the transfer of financial resources to and between subnational governments with the aim of mitigating regional differences in fiscal capacity and expenditure needs. However, the determination of fiscal capacity and expenditure needs is not a straightforward task. OECD countries use widely varying mechanism design approaches in their equalisation systems. This paper compares national approaches, covering the three modes of fiscal equalisation: pure revenue equalisation, revenue/cost equalisation and gap-filling equalisation, describing the distinct impacts of each approach on subnational revenue disparities. A clear inverse relationship emerges between the size of the cost-equalising component within a system and the percentage change in subnational per capita revenue disparities after equalising transfers are applied, although no significant relationship emerges between equalisation and regional convergence.

The Malaysian Federalism is highly centralized in terms of revenue powers, expenditure responsibilities and borrowing powers. Interpreting from the Federal-State fiscal relationship, decentralization is a non-issue in the Malaysian Federalism context. The Federal Government had a very strong commitment in the economic development and transformation of the States. In fact, the Federal government is better positioned to manage social and economic agendas with the good effect of scale economy. Federal-State fiscal relations have however been affected by the problems of both vertical (Federal-State) and horizontal imbalances (State-State). This is however warranted by negotiations with the State in concerned by directing Federal sponsored development projects, transfer of financial resources (grants and loans) to the States and the setting up National Finance Council (NFC). The issue of fiscal decentralization in the future is likely to be, at best, a series of ad hoc changes and improvements in technical aspects of intergovernmental relationships for public service provisions and their finance.

La literatura sobre incentivos fiscales destaca la importancia del diseño del sistema de transferencias intergubernamentales en el comportamiento de los ingresos propios de los gobiernos locales. Los resultados sobre la relación entre el sistema de transferencias intergubernamentales y la creación de incentivos para la generación de ingresos de los gobiernos locales difieren según los países. Este trabajo contribuye a la literatura del federalismo fiscal mediante la evaluación del impacto de las transferencias incondicionales y condicionales en los ingresos locales en Pakistán, para el período 1990-2015. Nuestros resultados muestran que, una vez tenida en cuenta la endogeneidad, las transferencias intergubernamentales incondicionales mejoran la recaudación de los ingresos de los gobiernos locales, mientras que las transferencias condicionales la deterioran. En Pakistán la mayor parte de las transferencias son de carácter incondicional por lo que los resultados sugieren que las transferencias del gobierno federal complementan la generación de ingresos propios de los gobiernos locales, alentando a los gobiernos locales de Pakistán a recaudar más ingresos.

Since the early 2000s, the roll-out of the MeerKAT astronomy project and the subsequent Square Kilometre Array (SKA) project in the Carnarvon area of the northern Karoo has been remarkably rapid and well managed. This article argues that the project, and the Department of Science and Technology in South Africa, have taken on the characteristics of a 'developmental state'. This is remarkable, particularly in the context of the general problem of high-level government corruption and 'state capture'. In the process, the SKA project has also shown a significant degree of centralist direction, which has brought it into tension with the constitutional provisions for decentralised municipal leadership in developmental planning. The weakness of the relevant local and district municipalities can be ascribed to the general problems of poor financing and local leadership; in addition, the Department of Co-operative Governance, at both national and provincial levels, has made no meaningful effort to assist the municipalities in grappling with a highly sophisticated scientific project being implemented within their jurisdiction. In particular, the extensive land acquisition by SKA and its requirements for restrictions on radio-frequency interference may have extensive implications for local and regional development. The article engages with theories of a 'developmental state' in South Africa, by arguing that it is possible for a single department to adopt such a centralist modus operandi, even though the rest of the state is characterised by dysfunctions.

China’s regions have been experiencing impressive growth over the past decades, but their potentials could be better exploited by creating a single product and labour market. Local protectionism increases transaction costs and hinders competition, thereby taking a toll on productivity. Administrative monopolies have long thrived and are hard to dismantle. Restrictions on the hukou and the fragmented pension system limit labour mobility. Local regulations aim at, among other things, securing the collection of local taxes, without which cities could not afford to offer the same public services to migrants as to urbanites. Hence, dismantling local regulations and creating a single product and labour market needs to go hand-in-hand with the reform of inter-governmental finances. Recent measures on both the product and labour market front appear to aim at making up for the slow progress over the past decade or so. There are signs that these efforts are helping China’s regions at various levels to converge toward each other. Disparities are shrinking faster across provinces, compared to within provinces. Integration of product and labour markets will boost productivity over the medium-to long term by reducing transaction costs, but could potentially widen regional disparities, which are already relatively high. This will necessitate enhanced transfers and re-centralisation of the financing of spending in some key categories such as education and health. Policies to help catching up of laggard regions by better connectivity through infrastructure investment are bearing fruit, but such investments should be subject to rigorous cost-benefit criteria to enhance capital allocation efficiency and should take into account externalities. Notwithstanding significant disparities along multiple dimensions across provinces, inequalities, be it in terms of income, wealth or education, are actually most striking along the rural-urban dimension. The rural revitalisation strategy, a novel element of the 19th Party Congress outcomes, is expected to address this issue. The other recent strategy of nurturing the formation of city groups will also likely benefit rural areas in-between those cities.This Working Paper relates to the 2019 OECD Economic Survey of China (http://www.oecd.org/economy/china-economic-snapshot/).

[United Sttes; Iran] Inter-governmental cooperation in [Nuclear energy; Technology transfer] could expand once unstable Political conditions are overcome

U.S. International Communications Agency proposes that its Iran program stress the United States understanding of the Iranian Revolution and interest in pursuing [Economic relations; Technology transfer; Trade; Foreign investments; Inter-governmental cooperation; Regional security]