Keywords

Slovakia, Czech Republic, fiscal policy, decentralization, New System

Abstract

Slovakia's transition history long paralleled that of the Czech Republic, but the former adopted bold new reforms early in tis decade. This paper is a comparative treatment of fiscal decentralization since 1993 and more recent reforms of public administration, the two efforts representing the foundation of the New System. Czech experience is invoked simply to provide an appropriate benchmark for the evaluation of Slovakia's New System introduced in 2004, including the 19% "flat tax" and other striking measures in local public finance. The second focus of the paper is on the macro-economic impact of the New System. It is too early to perceive what its long-term effects will be, so this treatment will be more tentative. But because one would like to know whether Slovakia's return to an economic growth path is actually a result of the New System and whether this recent growth will persist, those issues are given some consideration.

Original Publication Citation

Phillip J. Bryson and Gary C. Cornia, "Slovakia's Surge: The New System's Impact on Fiscal Decentralization," Post-Communist Economies, Vol. 18, No. 4, December, 26, pp. 451-471. http://www.tandfonline.com/doi/abs/1.18/1463137618597