ABSTRACT:

Existing theory and evidence on the effects of fiscal decentralization as a pro - poverty public policy are abundant. This paper describes the theoretical linkage between fiscal decentralization and poverty. The fiscal decentralization does reduce poverty if there are control and transparency in local governments. Indeed, fiscal decentralization is presented as a panacea for problems of development, natural resources, and poverty. Contrary to proponents of centralized state bureaucracy, Tiebout argued that local governments could generate an adequate supply of public goods (such as public safety) since they compete for citizens who can express their preferences for public goods by “voting with their feet. According to Congolese Society, the fiscal decentralization is the best fiscal policy capable to reduce the poverty.