Political Determination of Intergovernmental Grants: Evidence from the General Shared Tax in South Korea

2021 ◽  
Vol 19 (2) ◽  
pp. 263-278
Author(s):  
Sungchan Kim ◽  
Soyoung Park

Intergovernmental transfers can help coordinate resource distribution among local governments to address the disparities between them. Local governments in South Korea heavily rely on general shared tax as an unconditional grant from the central government. Yet, the central government modifies factors and weights in the formula to allocate the grants; thus, the final grants might not always reflect the formula accurately. We aimed to empirically investigate the political influence on the allocation mechanism in practice related to the general shared tax in South Korea. We found that political influence, based on the political ideology of the municipal government chief, which is the same as that of the president, affects the amount of increased general shared tax from the central government. This indicates that the framework for the distribution of resources between different levels of governments is neither efficient nor equitable.

2008 ◽  
Vol 42 (5) ◽  
pp. 1057-1078 ◽  
Author(s):  
METTE HALSKOV HANSEN

AbstractThis article argues that villagers' weakened trust in local governments has caused the officials to develop new strategies to cooperate with people and groups who enjoy traditional forms of authority. More specifically, the article shows how the officially established Old People' Associations in some areas have gained political influence far beyond what their official status as an “NGO” (minjian zuzhzi) would warrant. Villages of Fujian have a long history of being organised around patrilinear lineage organisations, and especially the older men still enjoys authority among the population. Local authorities, as well as business people, are therefore actively trying to engage and mobilise this traditional senior authority for their own political and economic purposes, thereby creating new relations of local power.


2016 ◽  
Vol 45 (1) ◽  
pp. 141-168 ◽  
Author(s):  
René Trappel

An important part of Beijing's strategy to reduce the welfare gap between urban and rural parts of China has been the promotion of urbanisation. Replacing peasant agriculture with commercial operations of scale is an integral part of this endeavour. This article analyses the implementation of policies meant to transform the structure of Chinese agriculture. It argues that the central government is using a set of very flexible policies, project-based implementation and adaption to local conditions to guide and support an existing dynamic of structural transformation in agriculture. Local governments, in turn, appreciate the flexibility, the political predictability, the potential revenue improvements and the cognitive framework inherent in these programmes. The article is primarily based on interviews with leading cadres at the township and county levels in the provinces of Shandong, Sichuan and Guizhou between 2008 and 2010.


2020 ◽  
Vol 5 (1) ◽  
pp. 19-36
Author(s):  
Young Kil Park ◽  
Seokwoo Lee

South Korea has taken steps to achieve the Aichi Target 11 and several pieces of South Korean legislation require the government to make every effort to protect the ocean from pollution and manage conservation consistently. However, protected area coverage is recognized to be well short of target and recent assessment reports reveal that most MPAs are not managed well. The reasons for mismanagement are complex: lack of budget, lack of understanding among local residents and communities, vague jurisdictional boundaries between the regional office of the central government and the local governments, shortage of experts, etc. Therefore, the immediate and primary task for the government is to establish more effective management systems rather than increase the number and areas of the MPAs.


2019 ◽  
Vol 19 (3) ◽  
pp. 345-376
Author(s):  
Jill L. Tao

The ability to regulate the flow of goods, capital and people across borders is one of the defining characteristics of nation-state political power. But there is not always agreement between the central government and local officials as to the desirability of immigration, where local governments may desire greater, or fewer, numbers of immigrants, depending on the local economy and labor needs. In South Korea, a unitary form of government offers an opportunity to examine the policy distance between the national government’s stance on immigration based on the politics of the ruling party, and the attitudes of local officials who work for metropolitan-level governments (those with a population of one million or more). I look at the impact of local economic market needs on local attitudes towards national immigration policy through the lens of intergovernmental relations and Lipsky’s concept of bureaucratic discretion. Comparing two cases drawn from local governments in South Korea with dissimilar economic bases but similar levels of local autonomy, I find that economic needs at the local level are addressed by local approaches to immigration policy. Contrary to expectations, the cases illustrate the relative importance of fiscal autonomy and a new understanding for political autonomy. These cases illustrate the need for caution when applying political and institutional theory within new contexts and offer new variables for future investigations of local autonomy.


2008 ◽  
Vol 26 (5) ◽  
pp. 954-967 ◽  
Author(s):  
Recep Tekeli ◽  
Muhittin Kaplan

Intergovernmental grants are the main revenue source of local governments. In the fiscal decentralization literature it has been argued that fiscal disparities across the regions are accounted for in the central-government grant distribution. However, some argue that grants are given to localities to increase the reelection chances of the incumbent or to increase the votes at election. To compete with the opposition parties the incumbent party may try to allocate the grants to aligned local governments. In this paper we analyze the grant allocation in Turkey. We test empirically whether central-government's budgetary transfers to the municipalities were made on the basis of economic criteria or in accordance with the political interest of politicians, and hence the coalition government. To test the hypothesis we followed the literature but we used additional variables. Using municipal data in sixty-one provinces, we find that the desire to secure reelection motivates politicians.


2017 ◽  
pp. 132-144
Author(s):  
Yuliia OSTRISHCHENKO

Introduction. Scarce local budget financial resources, lack of sufficient transparency of budget expenditures, and poor quality of public services provided by the central and local governments - all these factors require comprehensive governance reforms introduction primarily budget reform and powerdecentralization reform. Purpose. The aim of the article is to identify special traits and discover challenges of the local budgets planning and execution system, to analyze potential approaches to its improvement based on outcomes and effects of budget reform and local self-government reform implementation in Ukraine. Results. The article summarizes the tasks, measures and achievements of the local budgets reform and intergovernmental relation reform. The changes in the local budget revenue and expenditure structure were analyzed taking into account recent amendments to Budget and Tax Codes of Ukraine. The local budgets planning methods and approaches as well as procedures for fiscal equalization ofthe local government’s financial capacity were investigated; 2010-2017 reporting data on budget revenue and expenditures performance were analyzed. At the same time the article determines key budget parameters preliminarily included in draft 2018 Budget Law and medium-term Budget Declaration, in particular regarding local budgets and intergovernmental transfers and also represents review of progress achieved under the territorial communities’ amalgamation and establishment of direct interrelation between central government and newly formed amalgamated communities. Conclusion. According to the results ofthe research and analysis, the article substantiates the necessity of further local budget revenue amplification, the expediency of the budget decentralization considering budget subsidiarity principle, as well as the effectiveness of the new interbudgetary relation model.


2021 ◽  
Vol 2021 ◽  
pp. 1-14
Author(s):  
Xinhai Lu ◽  
Yanwei Zhang ◽  
Yucheng Zou

The effective implementation of cultivated land protection policies (CLPP) has important practical significance for improving China’s food security and ecological security. The central government, local governments, and farmers have mutually restricted and influencing interest relations. At the same time, the codes of behavior of multistakeholders also affect the implementation of CLPP in the social system. Therefore, this article discusses the behavioral tendencies and game relationships of relevant stakeholders in the implementation of CLPP from the perspective of evolutionary games and portrays a cognitive decision-making process closer to reality. Finally, numerical simulation reveals the key variables that affect the stability strategy. Results show the following: (1) As the main body of system supply, the central government should reconstruct the political achievement evaluation system and improve the status of the effective implementation of cultivated protection policies in the political achievement evaluation of local governments. (2) The central government should increase incentives for local governments to implement CLPP and increase penalties for violations to improve the effectiveness of policy implementation. (3) To optimize the actual implementation of CLPP, increasing awareness of farmers’ rights protection, reducing rights protection costs of farmers, and increasing the constraints on the flexible implementation of CLPP are necessary.


2005 ◽  
Vol 10 (3) ◽  
pp. 54-66 ◽  
Author(s):  
Han Woo Park ◽  
Mike Thelwall ◽  
Randolph Kluver

As the Internet has become a more important source of information for citizens and consumers, politicians in a number of nations have employed the Web as a tool to facilitate contact with constituents and supporters. One of the least understood phenomena in the new ecology of political communication, however, is the use of hyperlinks to build public recognition, to demarcate ideological spaces and to reflect political alliances. The purpose of this paper is to examine the political hyperlinks established by the National Assembly members in South Korea, in order to ascertain their functions. This paper examines the communicative agendas of politicians as represented by their (out)linking practices. Hyperlink data obtained from the homepages of South Korea's National Assembly members during June of 2003 was collected. A hyperlink network analysis revealed that outlinks to political parties were the most common type of link. The next most preferred target websites were those maintained by the National Assembly, local governments such as city hall, and central government bodies, including Ministries. Websites rarely hyperlinked to civic and advocacy groups compared to other categories. In summary, there were more navigational outlinks for informative content than ideological affiliations. The results are discussed from the perspective of Asian values underlying political communication as well as online culture. Finally, this study performs an important role in contributing to the small but growing literature on how the Internet is affecting the practices of nations outside of the established democracies of the West.


2017 ◽  
Vol 53 (04) ◽  
pp. 1750012
Author(s):  
HIROKO NAITO

This paper demonstrates how the Chinese Communist Party (CCP) designed the political role of the People’s Court for authoritarian regime resilience. In particular, the case of the revision of the Environmental Protection Law (EPL) is selected because it was the first law in China to give detailed rules for public-interest trials. To illustrate the process by which the law was made, the paper is divided into three parts: (1) the practice of local governments before the revision of the law, (2) central government inspections in the provinces during the period that the law was being made, and (3) the revision process of the EPL in the National People’s Congress. From this analysis, the paper concludes that the CCP streamlined the litigation process because it wanted to use the People’s Court system as a tool to collect and understand citizen complaints, which it could then use to manage the issues of social stability.


2019 ◽  
Vol 4 (4) ◽  
pp. 116-121
Author(s):  
Yarlina Yacoub ◽  
Nindya Lestari

Objective – Changes in financial authority as a result of decentralization are expected to make provinces in Indonesia become more flexible in approving their finances. However, it goes beyond central government transfers which make local governments more consumptive, which impacts on the phenomenon of the effect of flypaper. This study aims to identify the influence of the government’s fiscal on regional expenditure and identify the effect of flypaper on the regional expenditure in Kalimantan. Methodology/Technique – The research uses panel data from 56 regencies and cities on Kalimantan Island. Pooled least square method is used. Findings – The results show that intergovernmental fiscal revenue has a significant relationship with expenditure. Further, the flypaper effect occurs in regional expenditure which means that districts and cities in Kalimantan are still dependent on the central government to finance regional expenditures. They are not able to maximize their respective regional income. Novelty – These results indicate that the existence of local revenue derived from taxes has not been able to be optimally absorbed. Thus, dependence on intergovernmental transfers is very high. In addition, the flypaper effect also indicated that the intervention of the central government came into regional development planning programs. Type of Paper: Empirical Keywords: Flypaper Effect; Intergovernmental Transfer; Fiscal; Grants. Reference to this paper should be made as follows: Yacoub, Y; Lestari, N. 2019. Flypaper Effect in Indonesia: The Case of Kalimantan, J. Fin. Bank. Review, 4 (4): 116 – 121 https://doi.org/10.35609/jfbr.2019.4.4(1) JEL Classification: B22, D02, H02, H21, H3.


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