Challenges of Fiscal Decentralization in Developing and Transitional Economies - An Asian Perspective

The paper analyzes fiscal decentralization trends in three large Asian developing countries making a transition from plan to market economy. The analysis helps to identify the emerging challenges in achieving fiscal decentralization. The challenges arise from transition to market, and replacement of command and control systems with market- based policies, instruments and institutions. The approach to meet the challenges has to be holistic and should encompass all levels of government.