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Research Activities

Research Projects

FY 2008/2009 Research Topic: 4-26
Decentralization and Development


Fiscal decentralization has become a major trend in developing countries. How does the fiscal decentralization affect development reforms? This research program focuses on the intergovernmental fiscal relationship between central and local governments, and examines its impact on enforcement or outputs of development reforms. The purpose of this program is not to examine whether decentralization is good for development or not, but to investigate the essential factors to materialize the intended outputs of reforms in decentralized developing countries. With regard to the reforms, our focal issues are health system reforms or other social security reforms.

This program examines three case studies: The Philippines, Thailand, and Viet Nam. Fiscal decentralization changes the intergovernmental alignment of fiscal authority and responsibility between central and local governments. The decentralization of those three countries has a specific feature respectively. We first clarify the intergovernmental fiscal relationship for each of the three cases by particularly concerning the fiscal capacity/expenditure responsibility of local governments and fiscal transfer from central to local governments. We then examine the effect of such intergovernmental relationship on health system reforms or other development reforms, and consider the key factors to materialize the expected outputs of the reforms in decentralized developing countries.


April 2008´╝ŹFebruary 2010



Members of the Research Project

KONO Hisaki
JINNO Naohiko (Professor, Faculty of Economics, Graduate School of Economics, the University of Tokyo)
NAGAI Fumio (Professor, Graduate School of Law and Faculty of Law, Osaka City University)