State capacity and Public Finance

From a normative perspective, capable states provide public services in accordance with societal preferences, they are able to mobilise the necessary resources to fulfill their functions, and they can be held accountable for their actions. The political and administrative structures and the internal procedures of the state are especially important in this context. For the research team at the German Development Institute / Deutsches Institut für Entwicklungspolitik (DIE), two key areas of development cooperation are (i) the decentralisation of tasks, competences and resources to subnational levels of government, and (ii) the reform of public finances.

  • Decentralisation: In this thematic area the DIE team analyses the relationship of decentralisation, democracy and state capacity. The researchers  look at fiscal decentralisation and study the sequencing of reforms in multi-level systems.
  • Public Finance: Here, research covers the expenditure side of public finance in combination with the effectiveness of Budget Support as an aid instrument. With regard to the revenue side, the DIE team deals with the efficiency, effectiveness and legitimacy of tax systems at national and local levels and the assessment of tax performance.

Current Publications

The First Yearbook of Climate Action: What businesses, cities and regions do, and which next steps are needed?

Chan, Sander / Thomas Hale / Angel Hsu / Friederike Eichhorn / Ann Gardiner / Brendan Guy
The Current Column of 16 November 2017

The politics of finance: how capital sways African Central Banks

Dafe, Florence
Externe Publikationen of 15 November 2017

Climate conference in Bonn: good COP or bad COP?

Bauer, Steffen
The Current Column of 15 November 2017