This article explores the complex, multidimensional implications of decentralized local and regional governance structures with an emphasis on the following four major aspects: (1) fiscal outcomes, (2) regional economic implications, (3) social equity issues, and (4) environmental consequences. It is contended that a holistic approach, covering various aspects of the implications and revealing the context-specific trade-offs, is required to better understand the nature of the governance systems. A comprehensive view may also be essential for facilitating a more salient dialogue on potential system reforms and spurring meaningful efforts to improve the quality of the systems from the bottom up.
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