The classic theory of federalism suggests that local governments, when granted with more autonomy and resources, will be able to make better decision and improve social wellbeing. The arguments are rooted in two beliefs. First, as Hayek (1945) points up, local governments generally are endowed with information advantage over the national government in knowing the nature and changes of social tastes and preferences. Thus, through sorting and matching the resources with locally indigenous preferences, more social benefits can be delivered (i.e. throughhigher demand efficiency). Second, the federalism allows governance experiments in the localities and by design promotes inter-jurisdictional competition and mutual learning. Presumably, the competition and learning helps the local governments to make decisions for desirable social outcomes. The classic theory of federalism has been greeted with mixed empirical evidence in the developing countries. The parameters of fiscal governance vary significantly and the residents often fail to vote with their feet due to residence restrictions and social imperatives. Therefore, the positive outcomes presumably derived from the federalism arrangements may find hard to be substantiated or not uncommonly, go sour in the opposite direction. The second generation of federalism abandons the assumption that governments are benevolent, but focuses on their different incentives to perform. Students contend that federalism is likely to cause mixed kinds of outcomescontingent on how local incentives are structured. It is likely that local governments, when granted with more authorities and resources, may choose to maximize certain kinds of benefits over others, whichmay be linked to some unpleasant social outcomes. Empirical evidence exists in this regard. For instance, a higher level of fiscal decentralization in chinaseem conducive toslower economic development due to its unique stage of economic development. The essential question to ask is in what social dimensions, do fiscal decentralization creates what kinds of social outcomes?
标签: Resources经管大学堂：名校名师名课
京公网安备 11010802022788号
论坛法律顾问：王进律师
知识产权保护声明
免责及隐私声明
