Resolving Socioeconomic Disparities through Fiscal Decentralisation in the Republic of Macedonia

This article examines whether fiscal decentralisation in the former Yugoslav Republic of Macedonia between 2005 and 2012 has been achieved at the expense of economic and territorial cohesion. It examines the presence of longstanding socioeconomic disparities and rural under-development, before considering whether fiscal decentralisation has: facilitated a more equitable distribution of public resources; created the optimal conditions for expanding citizens’ access to basic services; and reduced socioeconomic disparities between urban and rural areas. The article argues that unless carefully designed and implemented, fiscal decentralisation reforms can have unintended consequences and may actually exacerbate socioeconomic disparities rather than reduce them.