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Intergovernmental relations: how the global crisis led to further decentralisation

The global financial and economic crisis has affected economies and societies, including in the ways governments allocate fiscal, financial, policy and political responsibilities among the different layers of administration. This column describes how, in particular, the crisis was associated with an increase in the subnational shares of general government spending and revenue, which are conventional quantitative gauges of fiscal decentralisation. Effects on subnational authority over politics, policy and fiscal-financial management are more nuanced.