The design of a federal system to deal with growth, stabilization, and regional and local development issues is the primary concern of this volume. The book provides analytical tools to address issues arising from globalization, localization, and regional integration. It discusses tax harmonization issues associated with subnational value added tax administration. It provides a framework for fiscal discipline in a federal system. Lessons from international experiences from policies to deal with lagging regions are drawn. Finally, it draws lessons from industrial countries' experiences on local governance.