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Decentralization and Access to Social Services in Colombia

Author

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  • Faguet, Jean-Paul
  • Sánchez, Fabio

Abstract

A central claim in favor of decentralization is that it will improve access to public services, but few studies examine this question empirically. This paper explores the effects of decentralization to access to health and education in Colombia. We benefit from an original database that includes over 95% of Colombian municipalities. Our results show that decentralization improved enrollment rates in public schools and access of the poor to public health services. In both sectors, improving access was driven by the financial contributions of local governments. Our theoretical findings imply that local governments with better information about local preferences will concentrate their resources in areas their voters care about most. The combination of empirical and theoretical results implies that decentralization provides local officials with the information and incentives they need to allocate resources in a manner responsive to voters’ needs, and improve the quality of expenditures so as to maximize their impact. The end result is greater usage of local services by citizens.

Suggested Citation

  • Faguet, Jean-Paul & Sánchez, Fabio, 2009. "Decentralization and Access to Social Services in Colombia," Research Department working papers 258, CAF Development Bank Of Latinamerica.
    • Handle: RePEc:dbl:dblwop:258
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    File URL: https://scioteca.caf.com/handle/123456789/258
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    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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