Fiscal decentralization in Southeast Asia

Fiscal decentralization is currently very popular and is being undertaken in many developing and transitional economies. This paper reviews the primary rationale for such policies and provides a short checklist of features useful in assessing a country's decentralization progress. The checklist is used to review the current status of decentralization efforts in the Philippines, Indonesia, Thailand and Malaysia. The cases illustrate that the Philippines has progressed far towards a fiscally decentralized system, that both Indonesia and Thailand are now in midst of the process, and that Malayasia appears to have no intent of joining other countries in this policy effort.