Description: Sponsoring a Race to the Top : The Case for Results-Based Intergovernmental Finance for Merit Goods

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Sponsoring a Race to the Top : The Case for Results-Based Intergovernmental Finance for Merit Goods

Intergovernmental finance is a significant source of sub-national finance in most countries. In both industrial and developing countries, formula based "manna from heaven" general purpose transfers dominate but co-exist with highly intrus...

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Bibliographic Details
Main Author:	Shah, Anwar
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	ABSENTEEISM ACADEMIC ACHIEVEMENT ACCESS TO EDUCATION ACCOUNTABILITY ACCOUNTABILITY FOR RESULTS ACCOUNTABILITY FRAMEWORK ACCOUNTABILITY REGIME ACCREDITATION AD HOC GRANTS ADJUSTMENT LENDING ADMINISTRATIVE EXPENDITURE ALLOCATION CHOICES ANNUAL BUDGET AUDITS AUTONOMY BACHELORS DEGREES BUDGET ALLOCATIONS BUDGET ESTIMATES BUDGET RESOURCES BUDGETARY ALLOCATIONS BUDGETARY AUTONOMY CAPACITY BUILDING CAPITAL GRANTS CAPITAL MARKET CAPITATION GRANT CHARTER SCHOOLS CIVIC ENGAGEMENT CIVIL SERVICE CONDITIONALITY DATA COLLECTION DECENTRALIZATION DEVELOPMENT CHARGES DISSERTATIONS DISTRICT GOVERNMENTS DROPOUT RATES EDUCATION BUDGET EDUCATION FINANCE EDUCATION POLICY EDUCATION PROGRAM EDUCATION PROGRAMS EDUCATION REFORM EDUCATION SECTOR EDUCATION SERVICES EDUCATIONAL PRACTICE EMPLOYMENT ENDOWMENTS ENROLLMENT GROWTH EQUALIZATION EQUITY OBJECTIVES ETHNIC GROUPS EXPENDITURE DECISIONS EXPENDITURES FEDERAL FUNDS FEDERAL REVENUE SHARING FEDERAL TRANSFERS FINANCIAL COMPLIANCE FINANCIAL REPORTING FISCAL ACCOUNTABILITY FISCAL CAPACITY FISCAL DECENTRALIZATION FISCAL FEDERALISM FISCAL MANAGEMENT FISCAL REFORM FISCAL REFORMS FISCAL TRANSFERS FUNGIBILITY GENERAL REVENUE SHARING GOVERNMENT EXPENDITURE GOVERNMENT FINANCES GRADUATION RATES GRANT ALLOCATION GRANT DESIGN GRANT DESIGNS GRANT FUNDS GRANT PROGRAM GRANT PROGRAMS HEALTH CARE HEALTH SECTOR HEALTH SERVICES HIGHER EDUCATION HIGHER EDUCATION FINANCE HIGHER EDUCATION FINANCING HIGHER EDUCATION MANAGEMENT HIGHER EDUCATION SYSTEM HUMAN DEVELOPMENT INFORMATION FLOWS INSTRUCTION INSURANCE INTERGOVERNMENTAL FINANCE INTERGOVERNMENTAL TRANSFERS INTERNAL AUDIT INTERNATIONAL BANK LACK OF ACCESS LAWS LEARNING LEGISLATION LEVEL PLAYING FIELD LITERACY LOCAL AUTONOMY LOCAL FINANCE LOCAL FINANCING LOCAL GOVERNMENT LOCAL GOVERNMENT AUTONOMY LOCAL GOVERNMENTS LOCAL TAXES MANDATES MATCHING GRANTS MERIT GOODS MINISTRY OF FINANCE MONITOR PERFORMANCE MUNICIPAL GOVERNMENT MUNICIPAL GOVERNMENTS MUNICIPALITIES NATIONAL ECONOMY NATIONAL GOVERNMENT NATIONAL MINIMUM STANDARDS NATIONAL PRIORITY OPPORTUNISTIC BEHAVIOR OUTPUT MEASURES PAPERS PENALTIES PERFORMANCE CRITERIA PERFORMANCE DATA PERFORMANCE IMPROVEMENT PERFORMANCE INDICATORS PERFORMANCE MEASURES PERFORMANCE ORIENTATION PERFORMANCE REPORTING PERFORMANCE TARGETS PERVERSE INCENTIVES POLITICIANS PORK BARREL PRIVATE GOODS PRIVATE PROVIDERS PRIVATE SCHOOLS PRIVATE SECTOR PROFESSORS PROGRAM IMPLEMENTATION PROGRAM OBJECTIVES PROPERTY TAX PROPERTY TAXES PROVISIONS PUBLIC PUBLIC ADMINISTRATION PUBLIC EDUCATION PUBLIC EXPENDITURE PUBLIC EXPENDITURE REFORM PUBLIC EXPENDITURE REVIEW PUBLIC GOODS PUBLIC MANAGEMENT PUBLIC MANAGERS PUBLIC OFFICIALS PUBLIC OWNERSHIP PUBLIC POLICIES PUBLIC SCHOOLS PUBLIC SECTOR PUBLIC SERVICE PUBLIC SERVICE DELIVERY PUBLIC SERVICE PROVISION PUBLIC SERVICES PUBLIC SPENDING PUBLIC USE QUALITY OF TEACHING RECEIPT REGIONAL GOVERNMENTS RESEARCH GRANTS REVENUE SHARING REVENUE SHARING PROGRAMS REVENUE SOURCES ROAD MAINTENANCE ROAD NETWORK ROADS SAVINGS SCHOOL FINANCE SCHOOL IMPROVEMENT SCHOOL PERFORMANCE SCHOOLS SECONDARY EDUCATION SERVICE DELIVERY FUNCTIONS SOCIAL ASSISTANCE SOCIAL INSURANCE SOCIAL OUTCOMES SOCIAL SCIENCES SOCIAL WELFARE SPENDING LEVELS STATE EDUCATION STATE GRANTS STREET LIGHTING STREETS STUDENT ACHIEVEMENT STUDENT ENROLLMENTS SUBNATIONAL FINANCE SUBSIDIARITY PRINCIPLE TAX TAX COMPETITION TAX EFFORT TAX REVENUES TAX SHARING TAXPAYERS TEACHER TEACHERS TERTIARY EDUCATION TRANSACTION COSTS TRANSACTIONS COSTS TRANSPARENCY TREASURY TUITION UNION UNIONS UNIVERSAL ACCESS UNIVERSITIES UNIVERSITY FINANCE UNIVERSITY FINANCES USER CHARGES
Online Access:	http://documents.worldbank.org/curated/en/2010/01/11633540/sponsoring-race-top-case-results-based-intergovernmental-finance-merit-goods http://hdl.handle.net/10986/19948

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Summary:	Intergovernmental finance is a significant source of sub-national finance in most countries. In both industrial and developing countries, formula based "manna from heaven" general purpose transfers dominate but co-exist with highly intrusive micro-managed "command and control" specific purpose transfers. Both these types of transfers undermine political and fiscal accountability. Reforms to bring in design elements that incorporate incentives for results-based accountability are resisted by both donors and recipients alike. This is because the donors perceive such reforms as attempts at chipping away at their powers and recipients fear such programs will be intrusive. This paper presents conceptual and practical underpinnings of grant designs that could further simplicity, objectivity, and local autonomy objectives while furthering citizen-centric results-based accountability. The paper further highlights a few notable recent initiatives in both industrial and developing countries that embrace such directions for reform. The paper concludes that results-based intergovernmental finance offers significant potential to minimize tradeoffs between local autonomy and accountability while furthering access to merit goods.