Contents -- Foreword -- Preface -- Acknowledgments -- Contributors -- Abbreviations and Acronyms -- CHAPTER 1 A Comparative Institutional Framework for Responsive, Responsible, and Accountable Local Governance -- Introduction: Local Government and Local Governance -- The Theory: Conceptual Perspectives on Local Governance and Central-Local Relations -- The Practice: Alternative Models of Local Governance and Central-Local Relations -- A Comparative Overview of Local Government Organization and Finance in Industrial Countries -- Concluding Remarks -- Acknowledgments -- References -- CHAPTER 2 Local Government Organization and Finance: Canada -- Municipal Government Responsibilities Associated with Expenditures -- Municipal Government Revenues -- Municipal Government Borrowing -- Recent Developments -- An Overall Assessment of Municipal Government Finances -- Lessons for Developing and Other Countries -- Notes -- References -- CHAPTER 3 Local Government Organization and Finance: France -- Jurisdictions -- Economic Weight -- Governance -- Local Government Expenditure Responsibilities -- Local Government Own-Source Taxes and Charges -- Central-Local Fiscal Transfers -- Local Government Borrowing -- Local Government Administration -- Conclusion -- Notes -- References -- CHAPTER 4 Local Government Organization and Finance: Germany -- Historical Development -- Financial Situation of the Local Administrative Bodies: Problems and Reform Proposals Presented So Far -- Local Financial Equalization between the Federal States and Municipalities -- Illustration: The Equalization System in Hesse -- Local Government Borrowing -- Local Government Administration -- Local Tax Administration -- Conclusion and Policy Implications -- Notes -- References -- CHAPTER 5 Local Government Organization and Finance: Japan -- An Overview of Japan's Local Government.

Expenditure Responsibilities -- Tax Assignment between Central and Local Governments -- Specific-Purpose Grants -- Fiscal Equalization System -- Local Bond and Borrowing -- References -- CHAPTER 6 Local Government Organization and Finance: New Zealand -- Overview of the Current Local Government System -- Local Government Expenditure Responsibilities -- Local Government Own-Source Taxes and Charges -- Shared Taxes -- Intergovernmental Fiscal Transfers -- Local Government Borrowing -- Local Government Administration -- Overall Assessment of Local Government Finances -- Lessons for Developing Countries -- Notes -- References -- CHAPTER 7 Local Government Organization and Finance: Nordic Countries -- Legal and Organizational Frameworks: The Development of Nordic Decentralization -- Size and Structure of Local Governments: Amalgamations and the Alternatives -- Decentralizing Expenditure -- Decentralizing Revenues -- Borrowing -- The Role of General, Specific, and Discretionary Grants -- Horizontal Imbalances and Equalization -- The Calculation of Expenditure Needs -- Summary and Conclusions -- Notes -- References -- CHAPTER 8 Local Government Organization and Finance: United Kingdom -- The Component Countries of the United Kingdom -- A Comment on Recent Reforms -- An Overview of the Current Local Government System -- Local Government Expenditure Responsibilities -- Local Government Own-Source Taxes and Charges -- Intergovernmental Fiscal Transfers -- Local Government Borrowing and Other Capital Revenues -- Local Government Administration -- An Overall Assessment -- Lessons for Developing Countries -- Notes -- References -- CHAPTER 9 Local Government Organization and Finance: United States -- Organization of Subnational Governments -- Services and Expenditures of Subnational Governments -- Own-Source Revenues of Subnational Governments -- Shared Taxes.

Intergovernmental Transfers -- Borrowing by Subnational Governments -- Administration of Subnational Governments -- Accountability of Local Governments -- Lessons for Developing Countries -- Notes -- References -- Index -- BOXES -- 5.1 Components Formula of Local Allocation Tax -- 7.1 The Middle Tier of Local Government -- FIGURES -- 1.1 A Comparative Perspective on Local Government Share of Consolidated Public Expenditures, 2000 -- 1.2 Local Expenditures as a Share of National GDP, 2001 -- 1.3 Composition of Operating Revenues for Local Authorities in 2001 -- 1.4 Composition of Local Tax Revenues, 2001 -- 4.1 Local Tax Revenues in Every Federal State, 1949, Based on Number of Inhabitants -- 4.2 Local Tax Revenues in Every Federal State, 1999, Based on Number of Inhabitants -- 4.3 Revenues of Germany's Municipalities in Western States, 2001 -- 4.4 Revenues of Germany's Municipalities in Eastern States, 2001 -- 4.5 Tax Revenues of Germany's Municipalities in Western States, 2001 -- 4.6 Tax Revenues of Germany's Municipalities in Eastern States, 2001 -- 4.7 Development of the Average Local Trade Tax Rates, 1992-2004 -- 4.8 Development of the Average Local Rate of Real Property Tax B, 1992-2004 -- 4.9 Tax Burden Inflicted by the Real Property Tax, 1992-2001 -- 4.10 Development of Fixed-Asset Investments by Municipalities, 1992-2001 -- 4.11 Development of the Ratio between Net Borrowing and Real Investment Expenditure, 1991-2000 -- 4.12 Structure of the Tax Administration of the Central Government -- 4.13 Structure of the Tax Administration in the Federal States -- 4.14 Conceptions of Local Public Finance in Europe -- 5.1 Composition of Local Tax, Planned Amounts for Fiscal Year 2005 Local Finances -- 5.2 Breakdown of National Government Disbursements, Fiscal Year 2004 -- 5.3 Local Debt Outstanding to GDP Ratio, 1955-2000.

6.1 Local Government Total Revenue (Tax, Nontax, and Grants), 1980 and 1995, as a Proportion of GDP -- TABLES -- 1.1 Assignment of Local Public Services to Municipal and Regional or Metropolitan Governments -- 1.2 Key Elements of Citizen-Centered Governance -- 1.3 Size Distribution of Municipal Governments in Industrial Countries According to Year of Latest Census -- 1.4 Average Population per Local Authority in OECD Countries -- 1.5 Intergovernmental Transfers as a Share of Local Government Revenues in OECD Countries in 2000 -- 1.6 Role of a Local Government under the New Vision of Local Governance -- 2.1 Canadian Federal, Provincial, and Local Government Expenditures, Selected Years -- 2.2 Level and Allocation of Municipal Government Expenditures by Province and for Canada, 2001 -- 2.3 Capital Expenditures of Canadian Municipal Governments, 2000 -- 2.4 Level and Allocation of Municipal Government Revenues by Province and for Canada, 2001 -- 2.5 Canadian Municipal Own-Source Revenue Sources, National Averages, 2001 -- 2.6 Provincial and Territorial Specific-Purpose and Unconditional Transfers to Municipalities, Canada and by Province, 2001 -- 2.7 Provincial and Territorial Specific-Purpose Transfers, Canada (1988, 1995, and 2001) and Provinces (2001) -- 2.8 Canadian Municipal Fiscal Variables in Selected Years -- 2.9 A Subnational Perspective on Selected Canadian Municipal Fiscal Variables, 1988 and 2001 -- 3.1 Area and Population Size of French Départements, Communes, and Regions, 2002 -- 3.2 Income and Expenditures of French Local Governments, 2004 -- 3.3 Expenditures of Communes, Groupings of Communes, Départements, and Regions, 2003 -- 3.4 Expenditures by Type, Communes, Départements, and Regions, 2003 -- 3.5 Expenditures by Function, Communes, Départements, and Regions, 2003 -- 3.6 Local Taxes, by Type and Level of Government, 2004.

3.7 Local Taxes as a Percentage of GDP, 1996 and 2002 -- 3.8 Central-to-Local Government Transfers, 2004 -- 3.9 Borrowing and Indebtedness, Central and Local Governments, 2004 -- 3.10 Local Governments' Borrowing-Related Flows, 2003 -- 3.11 Indebtedness of Local Governments, by Type, 2004 -- 3.12 Local Government Debt, by Lenders and Levels of Government -- 4.1 Numbers of Inhabitants in Germany's Municipalities, 2000 -- 4.2 Share of Tax Revenues Assigned to the Central Government, Federal States, and Municipalities -- 4.3 Distribution of Accountability for Some Areas of Expenditure -- 4.4 Local Financial Equalization between Federal States and Municipalities, 2001 -- 4.5 Calculation of the Vertical Grants from Hesse to the Local Authorities, 2005 -- 4.6 Distribution of the Vertical Grants among Municipalities, Rural Districts, and Incorporated Cities, as well as Classification between Conditional and Unconditional Grants, 2005 -- 4.7 Development of the Ratio between Interest Payments and Total Revenues, 1991-99 -- 4.8 Local Debt Structure -- 5.1 Basic Statistics Pertaining to Local Tax, 1910-2000 -- 5.2 Local Government Expenditure by Function, 2003 -- 5.3 Total Annual Revenue of Local Government, Fiscal Year 2003 -- 5.4 Regional Uneven Distribution and Variability of Local Tax -- 5.5 Fiscal Adjustment Effect of the Local Allocation Tax, 2003 -- 6.1 Aggregate Expenditure by Functional Responsibility, 2004 -- 6.2 Aggregate Local Authorities Financial Statistics: Actual Expenditure, 1999-2003 -- 6.3 Local Authorities' Quarterly Financial Statistics (Actual Revenue) -- 6.4 Indicators of Fiscal Decentralization -- 6.5 Subnational Government Taxing Powers in Selected OECD Countries, 1995 -- 6.6 Strategies for Ensuring Fiscal Discipline -- 6.7 Use of Rules and Sanctions in Selected Countries -- 6.8 Fiscal Framework and Enforcement Mechanisms.

6.9 Average Percentage Shift in Final Expenditure, 1978-97.