Publications on Municipal & Intergovernmental Finance

Charles Cadwell, a University of Maryland expert on the political economy of reform in developing nations, the relationship of institutions to economic development, and the implementation of legal and judicial reforms, has joined the Urban Institute as the director of its International Activities Center.

Annette Brown, a senior manager in the Emerging Markets division of BearingPoint, Inc., has been appointed director of the Urban Institute's International Activities Center. Brown will oversee IAC's overseas-focused work on issues of public administration and local governance, municipal and intergovernmental finance, urban development and the environment, housing and land markets, civil society and democratic institutions, and social sector reform.

An important characteristic of many countries is that they exhibit, to greater or lesser degrees, some "asymmetry" in the way in which different regions are treated by their intergovernmental fiscal systems. This paper explores some of the varied extents and manners in which such asymmetrical treatment may help or hinder the maintenance of an effective nation-state, where "effectiveness" encompasses both how effectively, efficiently, and (perhaps) equitably public services are provided throughout the national territory and also the effects asymmetry may have on the very existence of "fragmented" nation-states.

The study's primary purpose is to provide background and analysis on existing realities in Uzbekistan as input into USAID's thinking in respect to the timeliness and appropriateness of local government assistance. This assessment addresses the basic legal institutional framework for subnational government in Uzbekistan. It also describes how the central and respective local government tiers interact in practice and, how, at the municipal level, government is organized and operates, most importantly in respect to budgeting and the delivery of basic urban services. In addition, the assessment examines the role of mahallas (a traditional, neighborhood-based form of community self-governance) which have largely been absorbed into the system of state administration. The authors hope that the report will also serve as an informational resource for other parties interested in improving the effectiveness and responsiveness of local government in Uzbekistan.

This article analyzes the economic impact of taxing capital gains and four options for taxing capital gains in New Zealand. Drawing on their United States and New Zealand tax policymaking experience and the latest international research, the authors argue that the Tax Review 2001 dismissed too readily taxing gains on a realization basis. While acknowledging its glaring deficiencies, they contend that such problems as lock-in and loss limitations appear to be fairly modest based on available empirical evidence. The key point is that there is no perfect way to tax capital gains in a real-world income tax. And, on balance, taxing gains on a realization basis has a number of advantages over accrual taxation, the risk-free return method proposed by the Tax Review 2001, and taxing capital gains in an ad hoc and inconsistent fashion as New Zealand currently does.