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المستخلص Corruption is an important global social problem that exists in many forms. The study found that forms of corruption such as bribery, extortion, fraud, remittances, nepotism and embezzlement contribute to slowing economic growth and development in developing countries. Corruption in public institutions is an important global social problem that exists in many forms and is responsible for slow economic growth and development in developing countries. Although the presence of corruption in low-lying developing countries is evident, it was not clearly understood prior to this study. The main purpose of this quantitative study was, do countries with more fiscal decentralized and spending powers, such as Uganda and South Africa, have a lower level of corruption? Do changes in the degree of decentralization of these authorities affect the level of corruption? This study examines the impact of decentralization on financial corruption in South Africa and Uganda. Most recent literature tends to suggest that decentralization reduces corruption, an outcome often attributed to citizens’ ability to hold local officials accountable through the democratic process. However, no studies focus on this region in particular, which a gap is given the prevalence of new policies, weak institutions, and a lack of democracy in many countries. Studies have indicated that decentralization may reduce corruption - albeit slightly. Therefore, this study examines the impact of fiscal decentralization in a country on the level of corruption. It is theoretically clear that fiscal decentralization, similar to an increase in the number of competing jurisdictions, leads to a lower level of corruption. This hypothesis is then tested using datasets for the Republic of South Africa and the Republic of Uganda. Driven by a theoretical model, this study explored the link between financial decentralization and corruption. The empirical results are not very strong, but suggest that a hypothetical relationship between decentralization and corruption may indeed exist. It also provides misleading evidence that corruption may actually be lower in countries where the scope of fiscal decentralization is high. If confirmed, this result indicates that the benefits of decentralization outweigh the well-known gains from a better match between public spending and consumer preferences. The study of the topic of the role of financial decentralization and its relationship to corruption in the Republic of South Africa and the Republic of Uganda relied on the descriptive approach, which is the basic method of the study. It also relied on the analytical method, which is one of the most widely used methods in the study of political activity. The system is the unit of analysis, and the study used it ز in multiple regression analysis to measure the impact of financial decentralization on corruption rates. The study concluded with several results and recommendations, the most prominent of which is: Our approach is novel and contrasts with previous work that emphasized the linear positive/negative impact of decentralization on corruption. from an empirical point of view, the dynamics of corruption and the panel dimension (which is almost ignored in this field of analysis) must be exploited. Instead, we use the GMM procedure to simultaneously consider the temporal aspect of corruption, interpersonal variance and the emerging problem of homogeneity. Various empirical specifications as well as strength checks confirmed that an ideal arrangement - to reduce corruption - for achieving decentralization would require decentralized “intermediate” arrangements. In South Africa, Pearson’s correlations showed a linear relationship between decentralization and levels of corruption. We found a negative relationship between fiscal decentralization of government spending and corruption. In South Africa, the combination of weak democracy at the local level and weak oversight led to increased corruption with increased decentralization of government. As for measuring corruption in Uganda, Pearson’s correlations showed an inverse relationship between decentralization and lower levels of corruption (r = 0.46), with statistical significance at level (0.01). Uganda looks specifically at the extent of local accountability and the ability of central governments to monitor the Local Governance. In Uganda, local accountability was strong enough to lead to a decrease in corruption with the decentralization of the country. It is interesting to note that Uganda and South Africa implemented democratic decentralization around the same time, in the late 1990s. But we find that decentralization in Uganda, despite the lack of political will to fight corruption, and despite inheritance policies, seems to have had an impact in reducing corruption. As for South Africa, it is not a heritage country, and it can be argued that its leaders have shown greater will than that of Uganda (although the trend is discouraging). However, decentralization has not reduced corruption. Rather, it has helped encourage the slow rise of patronage politics as evidenced by the new class of ”entrepreneurs,” a troubling development in a country that was previously mostly devoid of this kind of system. Even in an environment that theory predicts will lead to better governance, decentralization can lead to increased corruption, as exemplified in the case of South Africa. Meanwhile, Uganda shows that even in a country with extensive patronage networks and weak monitoring institutions, decentralization can reduce levels of corruption |