Publication: Reforming at the Subnational Level: Global Experiences
Date
2021
ISSN
Published
2021
Author(s)
World Bank
Abstract
Reforming the business regulatory
framework requires overcoming many hurdles, especially in
federal countries. At the same time, global experience shows
that a higher degree of decentralization is not associated
with fewer business regulatory reforms. This policy note
presents strategies to promote investment climate reforms
across all levels of government in federal, state, and
municipal. In most countries, policy making is split between
: (i) the central government, which oversees foreign
relations and the domestic rule of law; and (ii) local
governments, which manage municipal and rural affairs. In
federal countries, subnational governments (SNGs) also
possess legislative powers that empower them to pass,
enforce, and interpret laws. The focus in this note is to
learn from the successful practices and strategies used to
align federal and SNG reform incentives. The first section
of the note provides an overview of power-sharing structures
and the critical challenges encountered. The second part of
the note focuses on consensus-building strategies, and the
third part describes several successfully leveraged
incentive strategies.
Citation
“World Bank. 2021. Reforming at the Subnational Level : Global Experiences. Equitable Growth, Finance and Institutions Insight;. © World Bank, Washington, DC. http://openknowledge.worldbank.org/handle/10986/35464 License: CC BY 3.0 IGO.”