Policy Capacity Under Decentralization: Kindergarten Education Reforms in the Philippines

The paper examines the relationship between policy capacity and policy effectiveness in decentralized governance setups. It challenges the conventional view that policy functions should only be decentralized when requisite capacities already exist at lower levels of government. Instead, the paper proposes that capacity can follow function ‐ as non‐central authorities perform decentralized responsibilities over time, they build the capacity to successfully implement those functions through learning‐by‐doing. The central argument is illustrated through the case of universalizing kindergarten education in the Philippines. The study finds that variations in analytical, operational, and political policy capacities align with how education governance functions are distributed across levels of government in the country. The survey reveals lower capacity levels among central government kindergarten coordinators compared to their regional and division counterparts, suggesting capacity develops through performing the required functions. The paper's main contribution lies in proposing that capacity is adaptive: by assigning functions first, relevant agencies can develop requisite capacities incrementally through learning‐by‐doing as they perform those responsibilities. In other words, capacity follows and approximates the functions rather than preceding them. This novel conceptualization challenges the dominant thinking that decentralization should allocate functions based on existing capacities. It also underscores the importance of quick learning and capacity building at various government levels to fulfill decentralized responsibilities effectively.