Tanzania’s Fiscal Arrangements: Obstacles to Fiscal Decentralization or Structures of Union-Preserving Federalism?

Governments pursue fiscal decentralization for a variety of reasons: to make government more responsive and accountable to the people, to increase the efficiency of the public sector, and to promote national cohesion. Generally speaking, public sector economists emphasize the accountability and efficiency benefits of decentralization and neglect the union preserving benefits. Consequently, decentr…