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This open access book analyses whether and to what extent fiscal transfers from central to local governments affect democracy at sub-national level. Fiscal transfers are often perceived to undermine democracy, as politicians utilise them to build patronage networks, weaken opposition candidates, and reward local governments that support them. On the other hand, others have argued that fiscal transfers serve to improve local governance, increase transparency, reduce corruption, and promote democracy. Drawing on eleven country case studies from Europe, Asia, and Africa, this book examines the extent to which local governments are affected with the risks connected with intergovernmental fiscal transfers. It will appeal to all those interested in public administration, public finance studies, and public policy.