In the transition experience, the Czech and Slovak Republics have made some effort to achieve fiscal decentralization. From independence to EU accession, the devolution of power designed to strengthen the autonomy of local governments according to the principles of subsidiarity have also included a reform of public administration. The nature of reform efforts and their implications for fiscal decentralization are analyzed. The failure to achieve a robust autonomy for subnational governments is due to the ongoing adherence to the notion of “state administration” as opposed to self-government in both republics.

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