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Eidgenössisches Departement für auswärtige Angelegenheiten EDA Direktion für Entwicklung und Zusammenarbeit DEZA Federal Department of Foreign Affairs FDFA Swiss Agency for Development and Cooperation SDC. Global Issues and Sustainable Development – 28.05.2008.
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Eidgenössisches Departement für auswärtige Angelegenheiten EDADirektion für Entwicklung und Zusammenarbeit DEZA Federal Department of Foreign Affairs FDFASwiss Agency for Development and Cooperation SDC Global Issues and Sustainable Development – 28.05.2008 Fiscal policy and decentralization
Main stakes Decentralization is only sustainable, if it considers the 'revenue side of the coin' (not only expenditures) GISD / Simon Hirsbrunner
Overview • Context • Obstacles • Good practices GISD / Simon Hirsbrunner
Best answers • Policy dialogue • Multilateral and bilateral donors • Central and local governments • Advocacy • Civil Society • Capacity building • Local governments and administrations GISD / Simon Hirsbrunner
Remaining challenges • Change of mindset of donors • Move the tax policy debate from the technical to the political sphere • Change of incentives of decision makers • Create political will for fiscal decentralization (central government) • Create incentives for central and local administration • role of ODA in this context (conditionality to raise revenues); GBS, SWAP GISD / Simon Hirsbrunner
General importance of the context • Importance of prevailing institutions • Countries with existing and functioning decentralized political and administrative structures are more promising candidates for fiscal decentralization • General lack of awareness / engagement • Lack of awareness and missing engagement of the importance of fiscal decentralization • Civil society • Private sector GISD / Simon Hirsbrunner
SDC Institutional framework SDC should mainstream fiscal aspects in its decentralization programs => Need of adequate training and resource allocation GISD / Simon Hirsbrunner