EROPA Bulletin Volume 34 Nos. 3-4 | Page 26

26 EROPA Bulletin Government (Institutions...) (From page 25) Disequalizing Equalization Transfers: Politics of Intergovernmental Transfers in Khon Kaen Province The team presentation of Drs. Achakorn Wongpreedee and Tatchalerm Sudhipongpracha showed the extent to which Thailand’s current intergovernmental fiscal transfers system help achieve horizontal fiscal equity among Thai local governments. Dr. Wongpreedee laid the institutional framework for decentralization and local public finance in Thailand. He located their paper within the theory of fiscal federalism and the role of national government in addressing the vertical and horizontal imbalances in using intergovernmental fiscal transfers. He also presented the research method and statistical model for their study. The study draws its quantitative and qualitative analyses based on a case study in Khon Kaen Province. Dr. Sudhipongpracha argued that the current design of fiscal transfers, which is politicized, does not address the horizontal imbalances across diverse local governments in Thailand. The study argued that “resourcerich communities receive more national government transfers than those with cash-strapped communities.” They concluded that the formula for fiscal transfers in Thailand is inconsistent with theory and that it exacerbates imbalances, thereby resulting in the absence of basic needs (e.g., potable water) and poor local service delivery. Moreover, the process of determining the amount of transfers is clouded by the political dynamics between national Vol. 34 Nos. 3-4 (July-December 2013) and local politicians as well as central government bureaucrats. The local governments in the province resort to extensive borrowing to finance their programs and projects. Based on their findings and arguments, Wongpredee and Sudhipongpracha suggested the need to design intergovernmental fiscal transfers to alleviate horizontal fiscal equity. Globalization, Public Sector Reform and Vicissitudes of Nation-States Dr. Danilo Reyes’ presentation explored the ramifications of institutional and structural responses – and outcomes – of nation-states in the context of globalization and new world order, where relationships are characterized as “supraterritorial.” Dr. Reyes impressively connected terminologies, viewpoints and theories of phenomenal scholars and leaders to explain the evolution of and patterns in nation-states, institutions, bureaucratic structures, administrative systems and processes, and international arrangements and connections around the world in the past century. He posited that, “over the years, the state has assumed many incarnations dictated by the exigencies and demands of the eras that enveloped it” with reference to the “big government, minimalist state and hollow state.” Dr. Reyes concluded with a challenge and research agenda for the study of public administration to capture and articulate new theories, concepts, prescriptions and principles as a result of globalization and the new international order. Focus may be given to theories on new institutionalism, network, international governance and the role of international organizations as they affect public administrative systems and processes. These will provide better understanding of the new frontier of public administration as a discipline as well as deepen the base for pursuing public sector reforms.