Fiscal Federalism in the view of Historical Perspective of the United States

Recently in Korea, decentralization with local autonomy have become critical issues. However, the concept of fiscal federalism in conjunction with local autonomy has scarcely been studied by scholars. Therefore, this study strives to bolster current research by tracing the history of fiscal federalism in the United States in order to apply this experience to the situation in Korea. Characteristics of fiscal federalism in Korea still seems to be layer cake, which seeks boundary of each government . The degree of share of the power between central government and local governments is still debatable. The conflicts in political actors regarding the decentralization are also prominent. Regardless of the partisans, implementation public policies should care about the citizens wellbeing, which is federalism should be developed under the Korea democracy framework and legitimacy of the government. As a result, preconditions such as the capability for financial independence and balanced growth of local government should be carefully considered prior to fiscal decentralization.