Sub-National Performance Incentives in the Intergovernmental Framework
This paper provides background for the Government of Indonesia as it considers if and how to introduce more robust local government performance incentives into the intergovernmental fiscal framework. The next section briefly examines the forces that have driven the recent national wave of interest in improving local government performance. This is followed by a review of the relatively limited set of local government performance incentives currently in force in Indonesia. The fourth section provides a conceptual overview of how to think about the possible expansion of local government incentive programs, outlining the potential role(s) of such programs in general and the key issues involved in designing and implementing them. The fifth section tentatively considers a number of options for additional local government incentives in Indonesia that the central government may wish to consider pursuing. The paper concludes with an outline of next steps for moving forward with the possible development of more purposeful and meaningful performance incentives in Indonesia's intergovernmental fiscal framework.
Summary: | This paper provides background for the
Government of Indonesia as it considers if and how to
introduce more robust local government performance
incentives into the intergovernmental fiscal framework. The
next section briefly examines the forces that have driven
the recent national wave of interest in improving local
government performance. This is followed by a review of the
relatively limited set of local government performance
incentives currently in force in Indonesia. The fourth
section provides a conceptual overview of how to think about
the possible expansion of local government incentive
programs, outlining the potential role(s) of such programs
in general and the key issues involved in designing and
implementing them. The fifth section tentatively considers a
number of options for additional local government incentives
in Indonesia that the central government may wish to
consider pursuing. The paper concludes with an outline of
next steps for moving forward with the possible development
of more purposeful and meaningful performance incentives in
Indonesia's intergovernmental fiscal framework. |
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