Fiscal decentralization in Eastern Europe linked to higher income levels
The article looks at how money is managed by governments in Eastern Europe over the past 20 years. They studied how much power local governments have over their finances. The study found that Russia and Estonia have the most local financial control in their regions. It also discovered that countries with more local financial control tend to have higher income levels. However, having good rules and systems in place is crucial for this to work well. Overall, Eastern European countries with more local financial control tend to have bigger governments, but there are differences between EU and non-EU countries.