Oil Revenue x Fiscal Federalism (Brosio)

Oil revenue and Fiscal Federalism by Giorgio Brosio – chater 10 of the book Fiscal Policy Formulation and Implementation in oil-producing countries – available only in the internet, published by IMF. “Descentralization expands the bargaining power of subnational governments forces are in action. These demands have been strengthened by frequent disregard of the problems created to local communities by exploration and exploitation activities. In fact, sound theoretical principles and technical arguments stressing the merits of national governance of natural resources are not easily expendable among local politicians when the central government neglects their problems.”