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South Africa's struggles with an ambitious and complex fiscal decentralization program are presented in detail in the first six chapters of this book. In this chapter, we summarize our key findings and turn to a discussion of the way forward with the assignment of powers and functions, the development of local sources of revenue, and the redesign of the intergovernmental transfer system. We give special emphasis to the interrelationships among the pieces of the fiscal decentralization system. We also briefly consider two dimensions of the system - development transfers to support capital investment and municipal borrowing powers - that are not discussed at length in the previous chapters.


Published in Smoke, Paul, Roy W. Bahl, Andrew Reschovsky, Larry Schroeder, David Solomon, and Peter Vaz. “Integrating Fiscal Decentralization Reforms and the Challenge of Implementation,” ,” Restructuring Local Government Finance in Developing Countries: Lessons from South Africa, Roy W. Bahl and Paul J. Smoke, eds. Cheltenham UK: Edward Elgar, 2003, 237-289.

(c) 2003. Published by Edward Elgar Publishing. All rights reserved. Posted by permission of the publisher.

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