Poland: Decentralization and Reform of the State (World Bank Country Study)

The primary objective of this report is to take stock of Poland's progress in decentralization to local governments within the context of the Government's transition program, and to make recommendations on how decentralization policy may support, broaden and deepen transition objectives. The transition program is at a crossroads, however, and making decentralization of the state consistent with the short- and medium-term stabilization and growth objectives of this program requires clear decisions about the pace and scope of decentralization. After a chapter on a normative framework for decentralization, the rest of the report is organized according to the key issues facing decentralization policy: (a) assignment of public responsibilities by level of government; (b) central/local fiscal relations; (c) financing of local government investments; and (d) local government planning and financial management. The final chapter provides an agenda for implementation of these recommendations.