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The need for subnational demographic, social, economic, and fiscal data in designing effective intergovernmental fiscal systems is becoming increasingly evident. In Central and Eastern European countries, the legacy of the region's communist past are information systems rooted in the centralized economy. Such an approach becomes less acceptable as economic issues become more complex and subnational governments in these transition economies become responsible for the delivery of local services. As political imperatives support increasingly democratic forms of governance in which people's needs...

In a multi-level government system institutional legacy and the assignment of roles and responsibilities between the federal and the subnational governments create imbalances. These imbalances in economic terms are a result of a mismatch between revenue-raising capacity and the spending responsibilities of the different levels of the government. Intergovernmental Transfers in Federations presents a synthesis of recent international experience of large federations in addressing the most fundamental issues of horizontal and vertical imbalances through the prism of intergovernmental...