In federal systems, economic and public sector decisions can be taken at various levels of government. This decentralized functioning provides opportunities and challenges for different governments to coordinate and harmonize their policies and raises key questions concerning the structure of government and allocation of expenditure responsibilities, taxation responsibilities, intergovernmental fiscal transfers and revenue sharing, and macroeconomic management. The emergence of a new “borderless” world economy, internal conflicts, and increasing globalization requires that attention be given to this issue. To address these issues, Forum programming continues to examine how federal countries differ in their choices as to the character of fiscal federalism and compares how these experiences and arrangements offer opportunities for these countries to learn from each other’s experiences in strengthening responsive and accountable governance.
