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The Political Economy of Decentralization Reforms : Implications for Aid Effectiveness

Author

Listed:
  • Kent Eaton
  • Kai Kaiser
  • Paul J. Smoke

Abstract

This volume presents a preliminary framework designed to help international development partners consider the relevance of political economy issues for their programmatic support to decentralization and local government reform. The intention is neither to advocate decentralization in general or in any particular form, nor to presume or privilege any particular decentralization objective. Instead, the purpose is to document the potential value of better understanding how (primarily national and intergovernmental) political and institutional dynamics do or could affect the scope for realizing decentralization reforms aligned with commonly advocated service delivery, governance, and poverty reduction goals. The underlying premise is that systematic analysis of these issues can productively complement the dominantly technical diagnostic work typically carried out by development partners. Specifically, development partners can benefit from better understanding the practical significance of motives that drive politicians and bureaucrats to support or oppose reform at various stages of the decentralization process, from making an initial reform decision to detailed design and implementation. In addition, the framework addresses how these incentives can weaken, strengthen, or shift in response to changes in political and economic conditions that arise after reform begins. A general approach to conducting political economy of decentralization analysis is outlined, recognizing the need to tailor such analysis to the particular country context. This volume is based on literature reviews and knowledge derived from selected country experiences.

Suggested Citation

  • Kent Eaton & Kai Kaiser & Paul J. Smoke, 2011. "The Political Economy of Decentralization Reforms : Implications for Aid Effectiveness," World Bank Publications, The World Bank, number 2336, September.
  • Handle: RePEc:wbk:wbpubs:2336
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    File URL: https://openknowledge.worldbank.org/bitstream/handle/10986/2336/634380PUB00pub01518B0EXTOP0ID018840.pdf?sequence=1
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    References listed on IDEAS

    as
    1. Pedro C. Vicente & Leonard Wantchekon, 2009. "Clientelism and vote buying: lessons from field experiments in African elections," Oxford Review of Economic Policy, Oxford University Press, vol. 25(2), pages 292-305, Summer.
    2. World Bank, 2005. "East Asia Decentralizes : Making Local Government Work," World Bank Publications, The World Bank, number 7492, August.
    3. Francis, Paul & James, Robert, 2003. "Balancing Rural Poverty Reduction and Citizen Participation: The Contradictions of Uganda's Decentralization Program," World Development, Elsevier, vol. 31(2), pages 325-337, February.
    4. Roy Bahl (ed.), 2003. "Restructuring Local Government Finance in Developing Countries," Books, Edward Elgar Publishing, number 2930.
    5. Roy Bahl & Jorge Martinez-Vazquez, 2013. "Sequencing Fiscal Decentralization," Annals of Economics and Finance, Society for AEF, vol. 14(2), pages 641-687, November.
    6. Shah, Anwar, 2004. "Fiscal decentralization in developing and transition economies: progress, problems, and the promise," Policy Research Working Paper Series 3282, The World Bank.
    7. Odd-Helge Fjeldstad, 2005. "Corruption in Tax Administration: Lessons from Institutional Reforms in Uganda," CMI Working Papers WP 2005: 10, CMI (Chr. Michelsen Institute), Bergen, Norway.
    8. Fox, Jonathan A, 1994. "The Difficult Transition from Clientelism to Citizenship: Lessons from Mexico," Center for Global, International and Regional Studies, Working Paper Series qt4n4746hk, Center for Global, International and Regional Studies, UC Santa Cruz.
    9. Charles E. McLure, Jr. & Jorge Martinez-Vazquez, 1998. "Intergovernmental Fiscal Relations in Vietnam," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper9802, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    10. Fitria Fitrani & Bert Hofman & Kai Kaiser, 2005. "Unity in diversity? The creation of new local governments in a decentralising Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 41(1), pages 57-79.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. repec:eee:wdevel:v:96:y:2017:i:c:p:326-342 is not listed on IDEAS
    2. Leonardo Romeo & Paul Smoke, 2014. "The Political Economy of Local Infrastructure Planning," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1417, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    3. Khan, Qaiser & Faguet, Jean-Paul & Ambel, Alemayehu, 2017. "Blending Top-Down Federalism with Bottom-Up Engagement to Reduce Inequality in Ethiopia," World Development, Elsevier, vol. 96(C), pages 326-342.
    4. repec:sos:sosjrn:180210 is not listed on IDEAS
    5. Smoke, Paul, 2016. "Looking Beyond Conventional Intergovernmental Fiscal Frameworks: Principles, Realities, and Neglected Issues," ADBI Working Papers 606, Asian Development Bank Institute.
    6. Faguet, Jean-Paul, 2014. "Decentralization and Governance," World Development, Elsevier, vol. 53(C), pages 2-13.
    7. Herrera, Veronica, 2014. "Does Commercialization Undermine the Benefits of Decentralization for Local Services Provision? Evidence from Mexico’s Urban Water and Sanitation Sector," World Development, Elsevier, vol. 56(C), pages 16-31.
    8. Herrera, Veronica & Post, Alison E., 2014. "Can Developing Countries Both Decentralize and Depoliticize Urban Water Services? Evaluating the Legacy of the 1990s Reform Wave," World Development, Elsevier, vol. 64(C), pages 621-641.
    9. Paul Smoke, 2013. "Why Theory and Practice are Different: The Gap Between Principles and Reality in Subnational Revenue Systems," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1313, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    10. Paul Smoke, 2014. "Why theory and practice are different: The gap between principles and reality in subnational revenue systems," Chapters,in: Taxation and Development: The Weakest Link?, chapter 9, pages 287-325 Edward Elgar Publishing.

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