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

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collection.link.5
https://openknowledge.worldbank.org/handle/10986/9
collection.name.5
Policy Research Working Papers
dc.contributor.author
Shah, Anwar
dc.date.accessioned
2014-02-20T21:49:04Z
dc.date.available
2014-02-20T21:49:04Z
dc.date.issued
2012-03
dc.description.abstract
In 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.uri
http://hdl.handle.net/10986/17124
dc.language.iso
en_US
dc.publisher
World Bank, Washington, DC
dc.relation.ispartofseries
Policy Research Working Paper;No. 6002
dc.rights
CC BY 3.0 IGO
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo
dc.subject
access to education
dc.subject
accountability
dc.subject
accountability in governance
dc.subject
assignment of taxes
dc.subject
autonomy
dc.subject
borrowing
dc.subject
budgetary autonomy
dc.subject
business taxes
dc.subject
Capital costs
dc.subject
capital expenditures
dc.subject
capital finance
dc.subject
Capital grants
dc.subject
central administration
dc.subject
central government
dc.subject
central tax administration
dc.subject
central taxes
dc.subject
central transfers
dc.subject
centrally collected revenues
dc.subject
city metro areas
dc.subject
City Metropolitan Area
dc.subject
City Politics
dc.subject
community development
dc.subject
community participation
dc.subject
comparative advantage
dc.subject
Comparative Studies
dc.subject
congestion charges
dc.subject
contractual obligations
dc.subject
Corporate Income Tax
dc.subject
corporate income taxes
dc.subject
decentralization
dc.subject
Development Assistance
dc.subject
Development Bank
dc.subject
disabled
dc.subject
disabled persons
dc.subject
district
dc.subject
district offices
dc.subject
economic development
dc.subject
economic growth
dc.subject
economic success
dc.subject
electricity
dc.subject
enrollments
dc.subject
environmental protection
dc.subject
environmental taxes
dc.subject
equalization
dc.subject
equitable access
dc.subject
equity objectives
dc.subject
excise taxes
dc.subject
expenditure
dc.subject
Expenditure Need
dc.subject
expenditure needs
dc.subject
external financing
dc.subject
Federal District
dc.subject
federal grant
dc.subject
Federal-Provincial
dc.subject
finances
dc.subject
Financial Development
dc.subject
financial reporting
dc.subject
financing needs
dc.subject
fiscal autonomy
dc.subject
fiscal capacity
dc.subject
Fiscal Federalism
dc.subject
fiscal gaps
dc.subject
fiscal surplus
dc.subject
fiscal transfers
dc.subject
formula based transfers
dc.subject
fuel taxes
dc.subject
gambling
dc.subject
governance models
dc.subject
governor
dc.subject
grant allocation
dc.subject
Grant design
dc.subject
grant programs
dc.subject
greater access
dc.subject
health services
dc.subject
households
dc.subject
housing
dc.subject
income
dc.subject
inflation
dc.subject
institutional arrangements
dc.subject
intergovernmental finance
dc.subject
Intergovernmental Fiscal Transfers
dc.subject
Intergovernmental Relations
dc.subject
Intergovernmental transfers
dc.subject
International Bank
dc.subject
international finance
dc.subject
lack of access
dc.subject
Large Cities
dc.subject
laws
dc.subject
level of government
dc.subject
levies
dc.subject
licenses
dc.subject
limited access
dc.subject
local autonomy
dc.subject
Local Finance
dc.subject
local financing
dc.subject
local fiscal capacity
dc.subject
local government
dc.subject
Local Government Finance
dc.subject
local governments
dc.subject
Local Public Finance
dc.subject
local taxes
dc.subject
mass transit
dc.subject
matching grants
dc.subject
mayor
dc.subject
mayors
dc.subject
Metropolitan area
dc.subject
Metropolitan Areas
dc.subject
Metropolitan cities
dc.subject
metropolitan finance
dc.subject
Metropolitan Government
dc.subject
metropolitan governments
dc.subject
municipal
dc.subject
municipal finance
dc.subject
Municipal Government
dc.subject
municipal governments
dc.subject
municipal services
dc.subject
municipalities
dc.subject
Municipality
dc.subject
natural resources
dc.subject
Operating costs
dc.subject
personal income taxes
dc.subject
Policy Reform
dc.subject
Political Economy
dc.subject
ports
dc.subject
Poverty Reduction
dc.subject
productivity
dc.subject
property tax
dc.subject
property tax base
dc.subject
property transfer taxes
dc.subject
province
dc.subject
provinces
dc.subject
provincial cities
dc.subject
provincial city
dc.subject
provincial governments
dc.subject
provisions
dc.subject
public
dc.subject
Public Administration
dc.subject
public agencies
dc.subject
public goods
dc.subject
public health
dc.subject
Public Policy
dc.subject
public sector
dc.subject
public sector wages
dc.subject
public services
dc.subject
public spending
dc.subject
public transit
dc.subject
public-private partnerships
dc.subject
real estate
dc.subject
real property
dc.subject
receipt
dc.subject
receipts
dc.subject
regional government
dc.subject
residential property
dc.subject
residential property taxes
dc.subject
revenue base
dc.subject
revenue bonds
dc.subject
revenue collection
dc.subject
Revenue Sharing
dc.subject
revenue sources
dc.subject
roads
dc.subject
savings
dc.subject
school finance
dc.subject
self-financing
dc.subject
slums
dc.subject
small towns
dc.subject
social development
dc.subject
social services
dc.subject
social welfare
dc.subject
Solid Waste disposal
dc.subject
sources of finance
dc.subject
special districts
dc.subject
street lighting
dc.subject
streets
dc.subject
sub-national
dc.subject
sub-national expenditures
dc.subject
surcharges
dc.subject
tax
dc.subject
tax administration
dc.subject
tax autonomy
dc.subject
tax bases
dc.subject
tax basis
dc.subject
Tax collection
dc.subject
tax decentralization
dc.subject
tax effort
dc.subject
tax relief
dc.subject
Tax sharing
dc.subject
taxation
dc.subject
Town
dc.subject
towns
dc.subject
transparency
dc.subject
transportation services
dc.subject
tuition
dc.subject
unfunded mandates
dc.subject
Urban Development
dc.subject
Urban Government
dc.subject
Urban Public Finance
dc.subject
urban services
dc.subject
user fees
dc.subject
value added taxes
dc.subject
villages
dc.subject
wages
dc.subject
water supply
dc.title
Grant Financing of Metropolitan Areas : A Review of Principles and Worldwide Practices
en
okr.date.disclosure
2012-03-20
okr.doctype
Publications & Research :: Policy Research Working Paper
okr.doctype
Publications & Research
okr.globalpractice
Social, Urban, Rural and Resilience
okr.globalpractice
Governance
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/1813-9450-6002
okr.identifier.report
WPS6002
okr.language.supported
en
okr.topic
Finance and Financial Sector Development :: Access to Finance
okr.topic
Macroeconomics and Economic Growth :: Subnational Economic Development
okr.topic
Public Sector Development
okr.topic
Urban Development
okr.topic
Urban Development :: Municipal Financial Management
okr.topic
Urban Development :: Regional Urban Development
okr.unit
Poverty Reduction and Economic Management Unit, East Asia and the Pacific Region

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