Fiscal Decentralization, Good Governance and Local Economic Development in councils in Ngoketunjia Division, Cameroon
DOI:
https://doi.org/10.14738/abr.122.16357Keywords:
Fiscal Decentralisation, Good Governance, Local Economic Development, Decentralisation, Local GovernmentAbstract
Abstract Dissatisfaction about the form of the state in Cameroon led to the putting in place of law No. 2019/024 of December 2019 instituting the General Code of Regional and Local Authorities, envisioned to improve local governance and impact local economic development. This, it was hoped will limit the interference of the central government in the management of regional and local affairs. Contrary to this theoretical supposition, there is still apparent strong centralization of financial powers by the central government in Cameroon. The rapport between the central government and the lower levels of government is rather that of command and obey relationship. Consequently, fiscal decentralization that is likely to promote good governance and engender local economic development at both regional and local levels appears to be rather an instrument of control for the central government, raising a concern as to the link existing between fiscal decentralization, good governance and local economic development in councils in Ngoketunjia Division. Employing largely a quantitative approach and within the prism of survey research design, guided by the efficiency theory of local government, findings revealed that fiscal decentralization, good governance and the transfer of revenue assignments and expenditure responsibilities following the enactment of the decentralization code on local economic development in councils in Ngoketunjia division has achieved little local economic development, established statistically by a calculated chi square value which stood at 152.14 as opposed to table value 26.217, leading to the rejection of the alternative hypothesis while the null hypothesis was accepted. It was discovered again that, there is no significant link between fiscal decentralization, good governance and local economic development in Councils in Ngoketunjia Division, shown in the computation of chi square test that stood at 130.8, disparate to table value of 26.217. The outcome was the rejection of the alternative hypotheses and acceptance of the null hypothesis. The paper concludes that, in Cameroon and particularly in the councils in Ngoketunjia division, there is tight de-concentration power rather than fiscal decentralization and good governance, suggesting that, the impact of fiscal decentralization and good governance on local economic development in councils in Ngoketunjia division is simply an ideological construct yearning for effective implementation. Keywords: Fiscal Decentralisation, Good Governance, Local Economic Development, Decentralisation, Local Government
References
Babessi Council Development Plan Draft Report (2011). Elaborated with the support of the National Community Driven Development Program (PNDP).
Balikumbat Council Development Plan (CDP) (2012). Elaborated with the Technical and Financial support of the National Community Driven Development Program (PNDP).
Bardhan, P. (2002). ‘Decentralization of governance and development’, Journal of Economic Perspectives, Vol.16 (4): pp-185-205.
Bloechliger, H. (2013). ‘Decentralization and economic growth Part 1: How fiscal federalism affects long-term economic growth’, OECD Working Papers on Fiscal Federalism, No. 14, Paris, OECD.
Bloechliger, H. and Égert, B. (2013). ‘Decentralization and economic growth Part 2’, OECD Working Papers on Fiscal Federalism, No. 15, Paris, OECD.
Bodman, P. (2011). ‘Fiscal decentralization and economic growth in the OECD’, Applied Economics, Vol.43 (23): pp-3021-3035.
Buser, W. (2011). ‘The impact of fiscal decentralization on economic performance in high-income OECD nations: an institutional approach’, Public Choice, Vol. 149 (1-2): pp-31-48.
Canaleta, C. G., et al. (2004). ‘Regional economic disparities and decentralisation’, Urban Studies, Vol. 41(1): pp-71-95.
Cantarero, D. & Gonzalez, P.P. (2009). ‘Fiscal decentralization and economic growth: evidence from Spanish regions’, Public Budgeting & Finance, Winter: Vol. 4 (7) pp. 24-44.
Council Development Plan (CDP) of Ndop Council, (2018), Realised with the technical and financial support of PNDP and accompanied by the LSO COMINSUD.
Ezcurra, R. & Pascual, P. (2008). ‘Fiscal decentralization and regional disparities: evidence from several European Union countries. Environment and Planning A, Vol. 40 (5): pp-1185–1201.
Gil-Serrate, R., et al. (2011). ‘Revenue Autonomy and Regional Growth: An Analysis of the 25-Year Process of Fiscal Decentralisation in Spain’, Environment and Planning A, Vol. 43(11): pp-2626-2648.
Kyriacou, A. P., et al. (2015). ‘Fiscal decentralization and regional disparities: The importance of good governance’, Papers in Regional Science, Vol. 94(1): pp-89–107. th Law No. 2019/024 of 24 December 2019 to institute the general code of regional and local authorities.
Mackenzie, W.J.M, (1961). Theories of Local Government, Greater, London Capers No. 2 L.S.E
Martínez-Vázquez, J, & McNab, R.M. (2003). ‘Fiscal Decentralization and Economic Growth’, World Development, Vol.31 (9): pp-1597-1616.
Mimboe B. (2021), ‘Is there a right time for Fiscal decentralization in any developing country: A case study of Cameroon,’ Munich Personal RePEc Archive, Paper No. 106220
Musgrave, R.A. (1959). The theory of public finance: A study in public economy. New York: McGraw-Hill.
Nguyen, L. P. & Anwar, S. (2011). ‘Fiscal decentralisation and economic growth in Vietnam’, Journal of the Asia Pacific Economy, Vol. 16(1): pp-3-14.
Oates, W. E. (1972). Fiscal Federalism. New York: Harcourt Brace Jovanovich.
Potter, B. R. (2004). Geographies of Development. Harlow: Pearson.
Rodrik, D. (2000). Institutions for High-Quality Growth: What They Are and How to Acquire Them. Cambridge, Mass: NBER
Rodríguez-Pose, A., & Bwire, A. (2004). ‘The Economic (In) efficiency of Devolution’. Environment and Planning A Vol.36: pp-1907-1928.
Rodríguez-Pose, A., & Gill, N. (2005). ‘On the 'economic dividend' of devolution’. Regional Studies No. 39: pp-405-420.
Rodriguez-Pose, A. (2009). ‘Fiscal decentralization and economic growth in Central and Eastern Europe’, Growth and Change, Vol. 40(3): pp-387-417
Rodríguez-Pose, A., Tijmstra, S. & Bwire, A. (2009). ‘Fiscal decentralisation, efficiency and growth’. Environment and Planning A, No. 41.
Rodriguez-Pose, A. & Ezcurra, R. (2009). ‘Does decentralization matter for regional disparities? A cross-country analysis’, Journal of Economic Geography, Vol.10 (5): pp-619-644.
Rodriguez-Pose, A. & Ezcurra, R. (2011). ‘Is fiscal decentralization harmful for economic growth? Evidence from the OECD countries’, Journal of Economic Geography, Vol. 11(4): pp-619-643.
Sagbas, I., et al. (2005). ‘Fiscal decentralisation, the size of the public sector, and economic growth in Turkey’, Environment and Planning C: Government and Policy, Vol. 23 (1): pp-3-19
Santiso, C. (2000). ‘Good Governance and Aid Effectiveness: The World Bank and Conditionality.’ The George Town Public Policy Review, Vol 7 (1): pp- 44-76.
Thornton, J. (2007). ‘Fiscal decentralization and economic growth reconsidered’, Journal of Urban Economics, Vol. 61 (1): pp- 64-70.
Tiebout, C.M. (1956). ‘A Pure Theory of Local Expenditures’. The Journal of Political Economy. Vol. 64 (5): pp-416-424.
Will, B., Katarina Đulić & Sanja Kmezić (2018). ‘The impact of fiscal decentralisation on local economic development in Serbia’. Research Paper Number 7.
World Bank, (2012). ‘The Path to Fiscal Decentralisation: Opportunities and Challenges’, World Bank Report. No. 633369-CM, September, 2012.
Woller, G.M., & Phillips, K. (1998). ‘Fiscal Decentralization and LDC Economic Growth: An Empirical Investigation’. Journal of Development Studies. Vol.34 (4): pp-139-148.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Munjah Vitalis Fagha
This work is licensed under a Creative Commons Attribution 4.0 International License.
