0w2010 01 RESUM EJECUTIVO 03 DEFcarta ang
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Second Global Report on Decentralization and Local Democracy. GOLD 2010 EXECUTIVE SUMMARY
industrialized countries. Recent surveys show that metropolitan local governments raise about 70 percent of revenues from their own sources although there is significant variation in the degree of self-sufficiency. In developing countries, the metropolitan local governments tend to be heavily dependent on transfers from higher level governments. A
strategy of replacing most transfer revenue with increased local taxing power would not be met with great enthusiasm by local politicians, because of the political pain associated with imposing taxes. But, it has been argued in many countries that a significant amount of untapped taxable capacity resides in the cities. This model would provide an incentive to invent ways to tap it.
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