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Grant Financing of Metropolitan Areas : A Review of Principles and Worldwide Practices

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dc.contributor.authorShah, Anwar
dc.date.accessioned2014-02-20T21:49:04Z
dc.date.available2014-02-20T21:49:04Z
dc.date.issued2012-03
dc.description.abstractIn the new information age in the globalized and interconnected world, metropolitan areas hold the key to the future prosperity and growth of nations. This paper takes a closer look at grant-financing regimes faced by metropolitan areas and their role in facilitating or hindering improvements in economic and social outcomes of residents of metropolitan areas. A review of 42 large metropolitan areas worldwide shows that, with a few notable exceptions, metropolitan areas in general are hamstrung from playing their potential role in economic advancement. Metro areas have large economic bases and therefore little a priori needs for grant financing, yet they have strong dependence on central transfers. This is because of the highly constrained fiscal autonomy given to these areas, especially in developing countries, with the singular exception of metro areas in China. Such a strong reliance on transfers undermines local autonomy and local accountability. General purpose transfers are formula based , transparent and predictable yet they discriminate against metropolitan areas as they utilize a one size fit all (common formula) for all local governments -- large or small. Such formula typically incorporate equal per jurisdiction component that discriminates against large metropolitan areas. Compactness is rarely rewarded and the greater needs of metro areas for transportation, education, health, culture and welfare go unrecognized. Overall the emphasis in grant financing of metro areas deals with vertical fiscal gaps or project based specific purpose grants. To ensure that metropolitan areas can play their dual roles in improving economic and social outcomes for residents, it is important to strengthen their fiscal autonomy while at the same time enhancing their accountability to local residents. The paper argues that results based grant financing of social and transportation services and tournament based approaches to encourage inter-jurisdictional competition need to be given serious consideration to ensure metropolitan autonomy while strengthening citizen based accountability.en
dc.identifier.doi10.1596/1813-9450-6002
dc.identifier.urihttps://hdl.handle.net/10986/17124
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 6002
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectaccess to education
dc.subjectaccountability
dc.subjectaccountability in governance
dc.subjectassignment of taxes
dc.subjectautonomy
dc.subjectborrowing
dc.subjectbudgetary autonomy
dc.subjectbusiness taxes
dc.subjectCapital costs
dc.subjectcapital expenditures
dc.subjectcapital finance
dc.subjectCapital grants
dc.subjectcentral administration
dc.subjectcentral government
dc.subjectcentral tax administration
dc.subjectcentral taxes
dc.subjectcentral transfers
dc.subjectcentrally collected revenues
dc.subjectcity metro areas
dc.subjectCity Metropolitan Area
dc.subjectCity Politics
dc.subjectcommunity development
dc.subjectcommunity participation
dc.subjectcomparative advantage
dc.subjectComparative Studies
dc.subjectcongestion charges
dc.subjectcontractual obligations
dc.subjectCorporate Income Tax
dc.subjectcorporate income taxes
dc.subjectdecentralization
dc.subjectDevelopment Assistance
dc.subjectDevelopment Bank
dc.subjectdisabled
dc.subjectdisabled persons
dc.subjectdistrict
dc.subjectdistrict offices
dc.subjecteconomic development
dc.subjecteconomic growth
dc.subjecteconomic success
dc.subjectelectricity
dc.subjectenrollments
dc.subjectenvironmental protection
dc.subjectenvironmental taxes
dc.subjectequalization
dc.subjectequitable access
dc.subjectequity objectives
dc.subjectexcise taxes
dc.subjectexpenditure
dc.subjectExpenditure Need
dc.subjectexpenditure needs
dc.subjectexternal financing
dc.subjectFederal District
dc.subjectfederal grant
dc.subjectFederal-Provincial
dc.subjectfinances
dc.subjectFinancial Development
dc.subjectfinancial reporting
dc.subjectfinancing needs
dc.subjectfiscal autonomy
dc.subjectfiscal capacity
dc.subjectFiscal Federalism
dc.subjectfiscal gaps
dc.subjectfiscal surplus
dc.subjectfiscal transfers
dc.subjectformula based transfers
dc.subjectfuel taxes
dc.subjectgambling
dc.subjectgovernance models
dc.subjectgovernor
dc.subjectgrant allocation
dc.subjectGrant design
dc.subjectgrant programs
dc.subjectgreater access
dc.subjecthealth services
dc.subjecthouseholds
dc.subjecthousing
dc.subjectincome
dc.subjectinflation
dc.subjectinstitutional arrangements
dc.subjectintergovernmental finance
dc.subjectIntergovernmental Fiscal Transfers
dc.subjectIntergovernmental Relations
dc.subjectIntergovernmental transfers
dc.subjectInternational Bank
dc.subjectinternational finance
dc.subjectlack of access
dc.subjectLarge Cities
dc.subjectlaws
dc.subjectlevel of government
dc.subjectlevies
dc.subjectlicenses
dc.subjectlimited access
dc.subjectlocal autonomy
dc.subjectLocal Finance
dc.subjectlocal financing
dc.subjectlocal fiscal capacity
dc.subjectlocal government
dc.subjectLocal Government Finance
dc.subjectlocal governments
dc.subjectLocal Public Finance
dc.subjectlocal taxes
dc.subjectmass transit
dc.subjectmatching grants
dc.subjectmayor
dc.subjectmayors
dc.subjectMetropolitan area
dc.subjectMetropolitan Areas
dc.subjectMetropolitan cities
dc.subjectmetropolitan finance
dc.subjectMetropolitan Government
dc.subjectmetropolitan governments
dc.subjectmunicipal
dc.subjectmunicipal finance
dc.subjectMunicipal Government
dc.subjectmunicipal governments
dc.subjectmunicipal services
dc.subjectmunicipalities
dc.subjectMunicipality
dc.subjectnatural resources
dc.subjectOperating costs
dc.subjectpersonal income taxes
dc.subjectPolicy Reform
dc.subjectPolitical Economy
dc.subjectports
dc.subjectPoverty Reduction
dc.subjectproductivity
dc.subjectproperty tax
dc.subjectproperty tax base
dc.subjectproperty transfer taxes
dc.subjectprovince
dc.subjectprovinces
dc.subjectprovincial cities
dc.subjectprovincial city
dc.subjectprovincial governments
dc.subjectprovisions
dc.subjectpublic
dc.subjectPublic Administration
dc.subjectpublic agencies
dc.subjectpublic goods
dc.subjectpublic health
dc.subjectPublic Policy
dc.subjectpublic sector
dc.subjectpublic sector wages
dc.subjectpublic services
dc.subjectpublic spending
dc.subjectpublic transit
dc.subjectpublic-private partnerships
dc.subjectreal estate
dc.subjectreal property
dc.subjectreceipt
dc.subjectreceipts
dc.subjectregional government
dc.subjectresidential property
dc.subjectresidential property taxes
dc.subjectrevenue base
dc.subjectrevenue bonds
dc.subjectrevenue collection
dc.subjectRevenue Sharing
dc.subjectrevenue sources
dc.subjectroads
dc.subjectsavings
dc.subjectschool finance
dc.subjectself-financing
dc.subjectslums
dc.subjectsmall towns
dc.subjectsocial development
dc.subjectsocial services
dc.subjectsocial welfare
dc.subjectSolid Waste disposal
dc.subjectsources of finance
dc.subjectspecial districts
dc.subjectstreet lighting
dc.subjectstreets
dc.subjectsub-national
dc.subjectsub-national expenditures
dc.subjectsurcharges
dc.subjecttax
dc.subjecttax administration
dc.subjecttax autonomy
dc.subjecttax bases
dc.subjecttax basis
dc.subjectTax collection
dc.subjecttax decentralization
dc.subjecttax effort
dc.subjecttax relief
dc.subjectTax sharing
dc.subjecttaxation
dc.subjectTown
dc.subjecttowns
dc.subjecttransparency
dc.subjecttransportation services
dc.subjecttuition
dc.subjectunfunded mandates
dc.subjectUrban Development
dc.subjectUrban Government
dc.subjectUrban Public Finance
dc.subjecturban services
dc.subjectuser fees
dc.subjectvalue added taxes
dc.subjectvillages
dc.subjectwages
dc.subjectwater supply
dc.titleGrant Financing of Metropolitan Areas : A Review of Principles and Worldwide Practicesen
dspace.entity.typePublication
okr.crossref.titleGrant Financing of Metropolitan Areas: A Review of Principles and Worldwide Practices
okr.date.disclosure2012-03-20
okr.date.doiregistration2025-04-10T09:54:57.911878Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.globalpracticeSocial, Urban, Rural and Resilience
okr.globalpracticeGovernance
okr.guid535111468330315327
okr.identifier.doi10.1596/1813-9450-6002
okr.identifier.reportWPS6002
okr.language.supporteden
okr.topicFinance and Financial Sector Development::Access to Finance
okr.topicMacroeconomics and Economic Growth::Subnational Economic Development
okr.topicPublic Sector Development
okr.topicUrban Development
okr.topicUrban Development::Municipal Financial Management
okr.topicUrban Development::Regional Urban Development
okr.unitPoverty Reduction and Economic Management Unit, East Asia and the Pacific Region
relation.isAuthorOfPublicationb34d7c24-e8b3-5886-aa6e-371ab8fa114e
relation.isAuthorOfPublication.latestForDiscoveryb34d7c24-e8b3-5886-aa6e-371ab8fa114e
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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