This article examines whether fiscal decentralisation in the former Yugoslav Republic of Macedonia between
2005 and 2012 has been achieved at the expense of economic and territorial cohesion. It examines the
presence of longstanding socioeconomic disparities and rural under-development, before considering whether
fiscal decentralisation has: facilitated a more equitable distribution of public resources; created the optimal
conditions for expanding citizens’ access to basic services; and reduced socioeconomic disparities between
urban and rural areas. The article argues that unless carefully designed and implemented, fiscal
decentralisation reforms can have unintended consequences and may actually exacerbate socioeconomic
disparities rather than reduce them.