Fiscal Decentralization in Comparative Perspective: Analysis of the Intergovernmental Grant Systems in Indonesia and Thailand

Decentralization can inadvertently lead to local fiscal disparity. One type of intergovernmental fiscal transfers, the general-purpose grant, can help equalize local fiscal imbalances. This article examines the extent to which the general-purpose grant systems in Indonesia and Thailand help mitigate local fiscal disparity. The findings show that the general-purpose grant system in Thailand does not effectively address disparities in local fiscal conditions. Localities with more own-source revenues and higher per capita income receive more general-purpose grants than those with weak fiscal capacity. In contrast, Indonesia’s general-purpose grant allocation system provides more resources for economically disadvantaged and conflict-ridden provinces.     

Demystifying Decentralization and Its Setback: Evidence From Thailand’s Decentralization Reform

This analysis explores the options for a conceptual framework to explicate the dynamics of decentralization reform in Thailand. The first section examines typological frameworks used in various social scientific fields to classify decentralization. Second, as a case in point, we analyze the decentralization reform process in Thailand, which officially began in the late 1990s. Then, the analysis examines theoretical and empirical works that attempt to explain the dynamics of decentralization in Thailand. We suggest historical institutionalism, along with the concepts of path dependence and critical junctures, as theoretical approaches to understand decentralization problems with an eye to political actors’ strategic interests, as well as political and institutional contexts that restrain their choices.