Does Decentralization Enhance Service Delivery and Poverty Reduction?


Book Description

Does decentralization enhance service delivery and poverty reduction? The expert contributors to this book address this fundamental question faced by policymakers and scholars in developing and advanced countries. The book illustrates that it is equally important for international agencies as well as bilateral donors to provide advice and assistance on decentralization that effectively supports poverty reduction. The volume builds on insights from the recent, political economy developments in the intergovernmental literature reviewed in the Handbook of Fiscal Federalism, and presents new empirical evidence on the effects of decentralization in different parts of the world. Policy-oriented papers evaluating the effectiveness of decentralized service delivery are presented. The role of institutions and the importance of sequencing of policies in ensuring effective outcomes are also considered. The volume presents some insightful empirical studies of the decentralization process from Latin America, Eastern Europe, and Africa. With a detailed empirical analysis of effective outcomes of public policies implemented at the sub-national level, and a focus on method, this book will be of great interest to academics specializing in public sector economics and public finance, and to national and international policymakers.




Handbook of Fiscal Federalism


Book Description

This volume provides comprehensive coverage of fiscal federalism by some of the leading scholars in the field. . . This Handbook is an excellent addition to the present discourse on the role of the state in fiscal matters. This reviewer would recommend this book as a required text for a graduate or senior class on public finance or economic development. Researchers in economic development, public finance, and fiscal policy likewise would find this volume useful. Highly recommended. Upper-division undergraduate through professional collections. J. Raman, Choice This major Handbook addresses fiscal relations between different levels of government under the general rubric of fiscal federalism , providing a review of the latest literature as well as an invaluable guide for practitioners and policy makers seeking informed policy options. The contributors include leading lights in the field, many of whom have themselves made seminal contributions to the literature. Comprehensive and wide in coverage, the issues covered range from federal systems to other forms of intergovernmental relations, such as supra-national constructs namely, the European Union unitary states, regional systems, and more decentralized operations, including community level organizations. The political economy approach emphasizes the importance of institutional arrangements, including the legal, political and administrative aspects, and information flows to ensure that there are appropriate incentives and sanctions to generate good governance. This Handbook also devotes attention to emerging issues, such as environmental protection, the sharing of natural resources among levels of government, corruption and the impact of federalism and decentralization on national unity. It will be a vital reference tool for the area for many years to come.




Citizens and Service Delivery


Book Description

In many low and middle income countries, dismal failures in the quality of public service delivery such as absenteeism among teachers and doctors and leakages of public funds have driven the agenda for better governance and accountability. This has raised interest in the idea that citizens can contribute to improved quality of service delivery by holding policy-makers and providers of services accountable. This proposition is particularly resonant when it comes to the human development sectors – health, education and social protection – which involve close interactions between providers and citizens/users of services. Governments, NGOs, and donors alike have been experimenting with various “social accountability” tools that aim to inform citizens and communities about their rights, the standards of service delivery they should expect, and actual performance; and facilitate access to formal redress mechanisms to address service failures. The report reviews how citizens – individually and collectively – can influence service delivery through access to information and opportunities to use it to hold providers – both frontline service providers and program managers – accountable. It focuses on social accountability measures that support the use of information to increase transparency and service delivery and grievance redress mechanisms to help citizens use information to improve accountability. The report takes stock of what is known from international evidence and from within projects supported by the World Bank to identify knowledge gaps, key questions and areas for further work. It synthesizes experience to date; identifies what resources are needed to support more effective use of social accountability tools and approaches; and formulates considerations for their use in human development. The report concludes that the relationships between citizens, policy-makers, program managers, and service providers are complicated, not always direct or easily altered through a single intervention, such as an information campaign or scorecard exercise. The evidence base on social accountability mechanisms in the HD sectors is under development. There is a small but growing set of evaluations which test the impact of information interventions on service delivery and HD outcomes. There is ample space for future experiments to test how to make social accountability work at the country level.




Fiscal Decentralization and the Efficiency of Public Service Delivery


Book Description

This paper explores the impact of fiscal decentralization on the efficiency of public service delivery. It uses a stochastic frontier method to estimate time-varying efficiency coefficients and analyzes the impact of fiscal decentralization on those efficiency coefficients. The findings indicate that fiscal decentralization can improve the efficiency of public service delivery but only under specific conditions. First, the decentralization process requires adequate political and institutional environments. Second, a sufficient degree of expenditure decentralization seems necessary to obtain favorable outcomes. Third, decentralization of expenditure needs to be accompanied by sufficient decentralization of revenue. Absent those conditions, fiscal decentralization can worsen the efficiency of public service delivery.




Local Governance in Africa


Book Description

An exploration of why some decentralization reforms have led to viable systems of local governance in Africa, while others have failed. It outlines the key issues involved, provides historical context, and identifies the factors that have encouraged or discouraged success.




The Political Economy of Democratic Decentralization


Book Description

Nearly all countries worldwide are now experimenting with decentralization. Their motivation are diverse. Many countries are decentralizing because they believe this can help stimulate economic growth or reduce rural poverty, goals central government interventions have failed to achieve. Some countries see it as a way to strengthen civil society and deepen democracy. Some perceive it as a way to off-load expensive responsibilities onto lower level governments. Thus, decentralization is seen as a solution to many different kinds of problems. This report examines the origins and implications decentralization from a political economy perspective, with a focus on its promise and limitations. It explores why countries have often chosen not to decentralize, even when evidence suggests that doing so would be in the interests of the government. It seeks to explain why since the early 1980s many countries have undertaken some form of decentralization. This report also evaluates the evidence to understand where decentralization has considerable promise and where it does not. It identifies conditions needed for decentralization to succeed. It identifies the ways in which decentralization can promote rural development. And it names the goals which decentralization will probably not help achieve.




Decentralization and Service Delivery


Book Description

Dissatisfied with centralized approaches to delivering local public services, a large number of countries are decentralizing responsibility for these services to lower-level, locally elected governments. The results have been mixed. The paper provides a framework for evaluating the benefits and costs, in terms of service delivery, of different approaches to decentralization, based on relationships of accountability between different actors in the delivery chain. Moving from a model of central provision to that of decentralization to local governments introduces a new relationship of accountability-between national and local policymakers-while altering existing relationships, such as that between citizens and elected politicians. Only by examining how these relationships change can we understand why decentralization can, and sometimes cannot, lead to better service delivery. In particular, the various instruments of decentralization-fiscal, administrative, regulatory, market, and financial-can affect the incentives facing service providers, even though they relate only to local policymakers. Likewise, and perhaps more significantly, the incentives facing local and national politicians can have a profound effect on the provision of local services. Finally, the process of implementing decentralization can be as important as the design of the system in influencing service delivery outcomes.




Decentralizing Governance


Book Description

A Brookings Institution Press and Ash Center for Democratic Governance and Innovation publication The trend toward greater decentralization of governance activities, now accepted as commonplace in the West, has become a worldwide movement. This international development—largely a product of globalization and democratization—is clearly one of the key factors reshaping economic, political, and social conditions throughout the world. Rather than the top-down, centralized decisionmaking that characterized communist economies and Third World dictatorships in the twentieth century, today's world demands flexibility, adaptability, and the autonomy to bring those qualities to bear. In this thought-provoking book, the first in a new series on Innovations in Governance, experts in government and public management trace the evolution and performance of decentralization concepts, from the transfer of authority within government to the sharing of power, authority, and responsibilities among broader governance institutions. This movement is not limited to national government—it also affects subnational governments, NGOs, private corporations, and even civil associations. The contributors assess the emerging concepts of decentralization (e.g., devolution, empowerment, capacity building, and democratic governance). They detail the factors driving the movement, including political changes such as the fall of the Iron Curtain and the ascendance of democracy; economic factors such as globalization and outsourcing; and technological advances (e.g. increased information technology and electronic commerce). Their analysis covers many different contexts and regions. For example, William Ascher of Claremont McKenna College chronicles how decentralization concepts are playing out in natural resources policy, while Kadmeil Wekwete (United Nations) outlines the specific challenges to decentralizing governance in sub-Saharan Africa. In each case, contributors explore the objectives of a decentralizing strategy as well as the benefits and difficulties that will likely result.




Decentralized Decision-making in Schools


Book Description

An increasing number of developing countries are introducing School-Based Management (SBM) reforms aimed at empowering principals and teachers or at strengthening their professional motivation, thereby enhancing their sense of ownership of the school. Many of these reforms have also strengthened parental involvement in the schools, sometimes by means of school councils. SBM programs take many different forms in terms of who has the power to make decisions as well as the degree of ecision-making devolved to the school level. While some programs transfer authority only to school principals or te.




Fiscal Decentralization and Local Finance in Developing Countries


Book Description

This book draws on experiences in developing countries to bridge the gap between the conventional textbook treatment of fiscal decentralization and the actual practice of subnational government finance. The extensive literature about the theory and practice is surveyed and longstanding problems and new questions are addressed. It focuses on the key choices that must be made in decentralizing, on how economic and political factors shape the choices that countries make, and on how, by paying more attention to the need for a more comprehensive approach and the critical connections between different components of decentralization reform, everyone involved might get more for their money.