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This work explores the issues invloved in redesigning intergovernmental relations in Albania, Bulgaria, Hungary, Poland, Romania, the Russian Federation and the Ukraine, and highlights issues of municipal finance in Budapest and the special case of division of revenue of natural resources taxation and asymmetrical federalism issues in Russia. Extensive political and fiscal decentralization in now underway in many countries in central and eastern Europe and the former Soviet Union. This volume focuses on the elements of decentralization in the transition economies that distinguish them from the rest of the world. Transition economies are different from market economies because of the prior stronghold of the central government on the whole economy.