“…While this paper does not focus on advocating for decentralization, or examining its pros and cons in any detail, it does take two claims as its point of departure: (1) that decentralization is an existing trend in many countries and is a policy option that many international agencies urge countries to at least consider (Smoke, 2000(Smoke, , 2001Basher, 2003;Busemeyer 2012;Ahmad, Brosio, & Tanzi, 2005), and that (2) if a country is likely to embark upon some form of decentralization, the design of the mechanisms for decentralization ought to take into account their efficiency and equity impacts (Monk, 1990;Augenblick, Meyers, & Anderson, 1997;Roza & Miles, 2002;Sharma, 2005;Kim, 2008;Odden & Picus, 2008;Ahmad & Brosio, 2009;Healey & Crouch, 2012). On the assumption that post-reform Egypt will continue decentralization efforts, an analysis of past modalities of transferring funds (particularly in terms of equity) is timely and justified.…”