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Corruption and decentralized public governance

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Author Info
Shah, Anwar

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Abstract

This paper examines the conceptual and empirical basis of corruption and governance and concludes that decentralized local governance is conducive to reduced corruption in the long run. This is because localization helps to break the monopoly of power at the national level by bringing decisionmaking closer to people. Localization strengthens government accountability to citizens by involving citizens in monitoring government performance and demanding corrective actions. Localization as a means to making government responsive and accountable to people can help reduce corruption and improve service delivery. Efforts to improve service delivery usually force the authorities to address corruption and its causes. However, one must pay attention to the institutional environment and the risk of local capture by elites. In the institutional environments typical of some developing countries, when in a geographical area, feudal or industrial interests dominate and institutions of participation and accountability are weak or ineffective and political interference in local affairs is rampant, localization may increase opportunities for corruption. This suggests a pecking order of anticorruption policies and programs where the rule of law and citizen empowerment should be the first priority in any reform efforts. Localization in the absence of rule of law may not prove to be a potent remedy for combating corruption.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3824.

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Date of creation: 01 Jan 2006
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Handle: RePEc:wbk:wbrwps:3824

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Related research
Keywords: National Governance; Governance Indicators; Corruption&Anitcorruption Law; Public Sector Corruption&Anticorruption Measures; Government Diagnostic Capacity Building;

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    Other versions:
  3. Hamid Reza Davoodi & Sanjeev Gupta & Erwin Tiongson, 2000. "Corruption and the Provision of Health Care and Education Services," IMF Working Papers 00/116, International Monetary Fund.
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Teodorescu, Daniel & Andrei, Tudorel & Rosca, Ion Gh. & Profiroiu, Marius & Turtureanu, Mihai, 2007. "Local Governance and Corruption of a Country in the Process of Joining the European Union," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 4(4), pages 49-60, December. [Downloadable!]
  2. Andreas Kyriacou & Oriol Roca sagalés, 2009. "Fiscal descentralization and the quality of government: evidence from panel data," Hacienda Pública Española, IEF, vol. 189(2), pages 131-155, June. [Downloadable!]
  3. Tudorel ANDREI & Ani MATEI & Ion Gh. ROSCA, 2009. "The Corruption - An Economic and Social Analysis," Economics Books, The Economica Publishing House, edition 1, volume 1, number 03, February. [Downloadable!]
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