Fiscal Decentralization and Ethnic Politics in Macedonia
Date Issued
2015-10-10
Author(s)
Aleksandra Maksimovska
Aleksandar Stojkov
Patrick Schmidt
Abstract
Competing ethno-centered strategies over the local fiscal
resources can seriously undermine political and economic stability
of ethnically diverse societies. This study investigates the causal link
between ethnic diversity and local government finances by focusing
on the case of Macedonia. In particular: whether fiscal
decentralization is used as a part of broader strategy for prevention
and mitigation of inter-ethnic conflicts. The main argument is that
low level of political culture and inter-ethnic tensions are frustrating
the development of the government policy along a course of
decentralization. The study confronts two emerging scenarios
regarding decentralization and inter-ethnic relations. The first
scenario puts the economic development at the forefront for
country’s stability and treats decentralisation as a driving force to
achieve this goal. Ethnic problems are expected to be solved along
this path as rising economic stability reduces the inter-ethnic
tensions. In the second scenario, the inter-ethnic stability is the main
pillar of the country’s stability, which is expected to be
accomplished through decentralisation. The paper analyses and
synthesizes pros and cons of two scenarios from administrative,
legal, political and economic perspectives.
resources can seriously undermine political and economic stability
of ethnically diverse societies. This study investigates the causal link
between ethnic diversity and local government finances by focusing
on the case of Macedonia. In particular: whether fiscal
decentralization is used as a part of broader strategy for prevention
and mitigation of inter-ethnic conflicts. The main argument is that
low level of political culture and inter-ethnic tensions are frustrating
the development of the government policy along a course of
decentralization. The study confronts two emerging scenarios
regarding decentralization and inter-ethnic relations. The first
scenario puts the economic development at the forefront for
country’s stability and treats decentralisation as a driving force to
achieve this goal. Ethnic problems are expected to be solved along
this path as rising economic stability reduces the inter-ethnic
tensions. In the second scenario, the inter-ethnic stability is the main
pillar of the country’s stability, which is expected to be
accomplished through decentralisation. The paper analyses and
synthesizes pros and cons of two scenarios from administrative,
legal, political and economic perspectives.
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Maksimovska, Stojkov, Schmidt 2015 Fiscal Decentralisation and Ethnic Politics in Macedonia.pdf
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