Is fiscal decentralization in help for internal conflict risks mitigation? Sub-Saharan African countries focus

Abstract

Abstract Decentralization has emerged as an important tool for conflict resolution around the world in recent years. This article examines the impact of fiscal decentralization on the risk of internal conflict in Sub-Saharan Africa, where more than two decades of experimentation with decentralization contrasts with the rise of multifaceted crises. Using a new dataset of 21 countries from 2002 to 2019, the results of several econometric methods show that fiscal decentralization has a statistically significant effect on internal conflicts risk in Sub-Saharan Africa. However, this effect is contingent on how subnational governments are funded. While policies that rely on intergovernmental transfers and expenditure decentralization increase the risk of internal conflict, policies that rely on financial empowerment of decentralized communities and resource decentralization reduce the risk of internal conflict. This means that increasing regional resources autonomy can lead to secessionist tendencies. Governments should increase intergovernmental transfers and local government spending in accordance with the principle of subsidiarity. JEL classification : H71, H72, H77, Q34.