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Decentralization And Governance

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  • Jean-Paul Faguet

Abstract

The most important theoretical argument concerning decentralization is that it can improve governance by making government more accountable and responsive to the governed. Improving governance is also central to the motivations of real-world reformers, who bear risks and costs in the interest of devolution. But the literature has mostly focused instead on policy-relevant outcomes, such as education and health services, public investment, and fiscal deficits. This paper examines how decentralization affects governance, in particular how it might increase political competition, improve public accountability, reduce political instability, and impose incentive-compatible limits on government power, but also threaten fiscal sustainability.

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Bibliographic Info

Paper provided by Suntory and Toyota International Centres for Economics and Related Disciplines, LSE in its series STICERD - Economic Organisation and Public Policy Discussion Papers Series with number 027.

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Date of creation: Jun 2011
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Handle: RePEc:cep:stieop:027

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Web page: http://sticerd.lse.ac.uk/_new/publications/default.asp

Related research

Keywords: decentralization; governance; local government; political competition; accountability; instability;

This paper has been announced in the following NEP Reports:

References

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  1. Jonathan A. Rodden & Gunnar S. Eskeland (ed.), 2003. "Fiscal Decentralization and the Challenge of Hard Budget Constraints," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262182297, November.
  2. repec:sae:pubfin:v:32:y:2004:i:1:p:4-35 is not listed on IDEAS
  3. International Monetary Fund, 2000. "Can Fiscal Decentralization Strengthen Social Capital?," IMF Working Papers 00/129, International Monetary Fund.
  4. Wildasin, David E., 1998. "Fiscal aspect of evolving federations : issues for policy and research," Policy Research Working Paper Series 1884, The World Bank.
  5. Galasso, Emanuela & Ravallion, Martin, 2005. "Decentralized targeting of an antipoverty program," Journal of Public Economics, Elsevier, vol. 89(4), pages 705-727, April.
  6. Faguet, Jean-Paul, 2001. "Does decentralization increase responsiveness to local needs? - evidence from Bolivia," Policy Research Working Paper Series 2516, The World Bank.
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Cited by:
  1. Anwar Shah & Theresa Thompson & Heng-fu Zou, 2004. "Decentralising the public sector: The Impact of Decentralisation on Service Delivery, Corruption, Fiscal Management and Growth in Developing and Emerging Market Economies: A Synthesis of Empirical Evi," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, vol. 2(1), pages 10-14, October.
  2. Yanez-Pagans, Monica & Machicado, Carlos Gustavo, 2012. "Bureaucratic Delay, Local-Level Monitoring, and Delivery of Small Infrastructure Projects: Evidence from a Field Experiment in Bolivia," IZA Discussion Papers 6687, Institute for the Study of Labor (IZA).
  3. Sridhar, Kala Seetharam, 2011. "The Efficiency of States and Cities: Is There a Case for Public Land Leasing and Sales to Finance India.s Cities?," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  4. Pranab Bardhan & Dilip Mookherjee, 2003. "Pro-Poor Targeting and Accountability of Local Governments in West Bengal," Boston University - Department of Economics - The Institute for Economic Development Working Papers Series dp-138, Boston University - Department of Economics.
  5. Raquel Bernal & Adriana Camacho & Carmen Elisa Flórez & Alejandro Gaviria, 2009. "Desarrollo económico: retos y políticas públicas," DOCUMENTOS CEDE 005269, UNIVERSIDAD DE LOS ANDES-CEDE.

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