Pierre F. Landry: Decentralization and Regime Transformation
8
national defense and internal security. Since autocracies tend to have a strong preference
for the latter, one would expect poor autocracies to be relatively more centralized than
more affluent ones.
Varieties of Decentralization
Decentralization without Democracy: China and Yugoslavia. The degree of fiscal
decentralization varies both across and within political regimes. The WB/IMF data
suggest that the PRC is one of ––if not the—most decentralized countries in the world
(Figures 2 & 4). In 2002, Chinese local governments accounted for nearly 70% of all
government spending, more than in other country for which recent data is available.
Figure 2: Variations of fiscal decentralization in selected regimes (1975-2000)
0
20
40
60
80
S
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at
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&
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o
c
a
l
s
h
a
r
es
of
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o
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a
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o
v
.
e
x
pe
nd
it
ur
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s
1975
1980
1985
1990
1995
2000
Year
China
Mexico
Yugoslavia
India
Sources: Fiscal Decentralization indicators. Supplemented when possible by national statistical data,
particularly in the case of China and Indonesia
Convention