Intergovernmental Reforms in the Russian Federation

Migara O. De Silva

Description

This study is a comprehensive review of fiscal federalism in the Russian Federation. It presents a strong case for greater decentralization. By succinctly surveying the literature on fiscal decentralization and clearly spelling out the main concepts, the volume sets the stage for the subsequent description of the fiscal system in Russia and its evolution through a succession of reforms guided by a desire on the part of Russian policymakers to craft a workable system of fiscal federalism. The authors not only describe the state of fiscal federalism in Russia at its key turning points, but they also provide insightful critical assessments of the reforms introduced at each stage. The book is rich with examples, which makes it an easy and exciting reading. The book's analysis of the history gives perspective to the authors' assessment of the current state of Russia's federalism. The authors make a strong case for greater decentralization in Russia based not only on the traditional economic benefits of fiscal federalism but also on the political benefits from local government competition. The richness of detail and the careful tracing of the reforms over the past nearly two decades also mean that this study will be an invaluable guide to both current observers with academic and policy interest in the recent fiscal federalism reforms as well as Russia's fiscal evolution since the early 1990s and its current fiscal challenges.

Informations

• Publié par: world-bank-publications
• Publié le: 29 juillet 2009
• Nombre de lectures: 27
• EAN13: 9780821379684
• Langue: English
• Poids de l'ouvrage: 3 Mo

Extrait

DIRECTIONS IN DEVELOPMENT
Public Sector Governance
Intergovernmental Reforms in
the Russian Federation
One Step Forward, Two Steps Back?
Migara O. De Silva, Galina Kurlyandskaya, Elena Andreeva,
and Natalia GolovanovaIntergovernmental Reforms in the
Russian FederationIntergovernmental Reforms in the
Russian Federation
One Step Forward, Two Steps Back?
Migara O. De Silva,
Galina Kurlyandskaya,
Elena Andreeva, and
Natalia Golovanova© 2009 The International Bank for Reconstruction and Development / The World Bank
1818 H Street NW
Washington DC 20433
Telephone: [phone]
Internet: www.worldbank.org
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All rights reserved
1 2 3 4 11 10 09
This volume is a product of the staff of the International Bank for Reconstruction and
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ISBN-13: 978-0-8213-7967-7
eISBN: 978-0-8213-7968-4
DOI: 10.1596/978-0-8213-7967-7
Library of Congress Cataloging-in-Publication Data
Intergovernmental reforms in the Russian federation : one step forward, two steps back? / Migara
O. De Silva ... [et al.].
p. cm.
Includes bibliographical references.
ISBN 978-0-8213-7967-7 — ISBN 978-0-8213-7968-4 (electronic)
1. Intergovernmental fiscal relations—Russia (Federation) I. De Silva, Migara, 1956-
HJ1211.52.I58 2009
336.47—dc22
2009011067
Cover design by Candace Roberts, Quantum Think, Philadelphia, PA, United States
Cover artwork: En tres tiempos, Patricia Eyzaguirre. © World Bank Art Program.Contents
Foreword ix
Acknowledgments xi
About the Authors xiii
Acronyms xv
Chapter 1 Is Fiscal Decentralization Necessary? 1
Introduction 1
Is Fiscal Decentralization Necessary? 3
Chapter 2 Administrative and Territorial Divisions 17
Chapter 3 History of Intergovernmental Relations 25
Spontaneous Decentralization, 1991–93 30
Formalization of the Rules, 1994–98 34
Further Steps in Fiscal Decentralization and
Political Recentralization, 1999–2001 37
Assignment of Power and Local Government
Reform, 2002–04 39
Fiscal Recentralization, 2005–08 46
vvi Contents
Chapter 4 Intergovernmental Design 49
Expenditure Assignment 50
Assignment of Revenue Sources 60
Transfers from the Federal Budget 74
Subnational Intergovernmental Relations 85
Chapter 5 Federalism Russian Style 99
The Impact of the Crisis 102
An Uncertain Future for Intergovernmental
Reforms? 105
Appendix A Russian Federation’s Constituent States:
Basic Facts 109
Appendix B Map of the Russian Federation 115
References 117
Index 125
Boxes
1.1 Appointing versus Electing Local Officials 7
2.1 Structure of the Russian Federation 19
2.2 The Federation Council: A Rubber Stamp of
the President? 19
4.1 The Main Functions Assigned to Regional Governments 52
4.2 Local Government Issues 54
4.3 Local Government Revenue in China 71
4.4 Types of Federal Transfers 75
4.5 Allocation of the Equalization Grants 80
4.6 Transfers and Tax Competition 81
4.7 Different Models of Local Self-Government 86
Figures
2.1 Russian Federation’s Federal Structure 18
3.1 Share of Subnational Expenditures in Total Outlays
of National and Subnational Government without
Extrabudgetary Funds, 1992–2006 30
3.2 Share of Subnational Revenues in Total Revenues of
National and Subnational Government without
Extrabudgetary Funds, 1992–2006 45Contents vii
4.1 Annual Expenditures per Student on Secondary
Education, by Region, 2005 59
4.2 Consolidated Tax Revenue Structure 66
4.3 Sharing Rates of Main Taxes Shared with Subjects
of the Federation, 1992–2007 73
4.4 Vertical Fiscal Balance 75
4.5 Federal Transfers to Subnational Governments as
a Percentage of GDP, 1996–2007 77
4.6 Equalization Grants Allocation Formula, 2005 82
4.7 Astrakhan Oblast, Raions and Cities, 2006 92
4.8 Amur Oblast,, 2006 93
4.9 Stavropol Krai,, 2006 93
4.10 Staai, Settlements and Cities, 2006 94
4.11 Subnational Government Bonds Market, 2002–07 95
5.1 Accumulated Debt of Federal and Regional
(Subnational) Governments 104
Tables
1.1 Fiscal Decentralization: Triangular Dilemma 14
2.1 Mergers of Subjects of the Russian Federation 23
3.1 Main Stages in the Development of Intergovernmental
Relations 28
3.2 Sanctions for Poor Financial Performance by Regional
Governments 47
3.3erformance by Local 48
4.1 Expenditures on Public Functions by Tier of
Government as a Percentage of
Total Expenditure, 2006 55
4.2 Differences in Regional Expenditures for Major
Public Functions Structure, 2006 58
4.3 Tax Assignment for Various Levels of Government, 2006 64
4.4 Subnational Tax Revenues by Degree of
Tax Autonomy, Selected Countries 69
4.5 Subnational Government Revenue Structure, 2006 70
4.6 Federal Grants to Subnational Governments, 2005–07 83
4.7 Allocation of Transfers for Regional Development, 2005 84
4.8 Sources of Subnational Governments’ Revenues
in Amur and Astrakhan Oblasts and
Stavropol Krai, 2006 92