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The Political Economy of Decentralization Reforms : Implications for Aid Effectiveness

Eaton, Kent; Kaiser, Kai; Smoke, Paul J.
Fonte: World Bank Publicador: World Bank
Relevância na Pesquisa
56.18%
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...

Political Capture of Decentralization : Vote-Buying through Grants-Financed Local Jurisdictions

Khemani, Stuti
Fonte: Banco Mundial Publicador: Banco Mundial
Relevância na Pesquisa
66.19%
A recent trend in decentralization in several large and diverse countries is the creation of local jurisdictions below the regional level -- municipalities, towns, and villages -- whose spending is almost exclusively financed by grants from both regional and national governments. This paper argues that such grants-financed decentralization enables politicians to target benefits to pivotal voters and organized interest groups in exchange for political support. Decentralization, in this model, is subject to political capture, facilitating vote-buying, patronage, or pork-barrel projects, at the expense of effective provision of broad public goods. There is anecdotal evidence on local politics in several large countries that is consistent with this theory. The paper explores its implications for international development programs in support of decentralization.

Centralization, Decentralization, and Conflict in the Middle East and North Africa

Tosun, Mehmet Serkan; Yilmaz, Serdar
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Relevância na Pesquisa
56.16%
This paper examines broadly the intergovernmental structure in the Middle East and North Africa region, which has one of the most centralized government structures in the world. The authors address the reasons behind this centralized structure by looking first at the history behind the tax systems of the region. They review the Ottoman taxation system, which has been predominantly influential as a model, and discuss its impact on current government structure. They also discuss the current intergovernmental structure by examining the type and degree of decentralization in five countries representative of the region: Egypt, Iran, West Bank/Gaza, Tunisia, and Yemen. Cross-country regression analysis using panel data for a broader set of countries leads to better understanding of the factors behind heavy centralization in the region. The findings show that external conflicts constitute a major roadblock to decentralization in the region.

Guinea - Decentralization in Guinea : Strengthening Accountability for Better Service Delivery

World Bank
Fonte: Washington, DC Publicador: Washington, DC
Relevância na Pesquisa
56.19%
The purpose of this report is to present reform options for the implementation of the new code that would strengthen accountability in service delivery. The report is structured as follows: chapter one discusses how decentralization can be an effective tool for improving service delivery and local governance. Chapter two assesses progress in fiscal, administrative and political decentralization, scrutinizes their impact on accountability relationships and makes recommendations to further decentralization, in line the new code. Chapter three analyses current arrangements for service delivery in two sectors (water and education), maps out strengths and weaknesses of existing accountability relationships and makes recommendations, drawing on existing innovative practices in Guinea and/or the region. Chapter four offers recommendations to manage change and maintain the momentum for reform. Chapter five concludes with an outlook.

Promoting Good Governance with Social Funds and Decentralization

Parker, Andrew
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Relevância na Pesquisa
56.1%
Bad governance undermines development. Two important types of World Bank support for local governance are social funds and broadly based support for governments committed to decentralizing responsibility and power to local governments and other local institutions. But there are concerns that these two approaches, which address different elements of governance, sometimes work at cross-purposes. A study was therefore commissioned to examine the interaction between social funds and decentralization in Bolivia and Honduras (advanced decentralization), Peru and Zimbabwe (some decentralization), and Cambodia, Malawi, and Zambia (little or no decentralization). This Note is based on the findings of the study.

Decentralization and Governance : Does Decentralization Improve Public Service Delivery?

Kahkonen, Satu; Lanyi, Anthony
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Relevância na Pesquisa
56.15%
Decentralization holds a lot of promise, but whether it improves public service delivery depends on the institutional arrangements governing its implementation. Several conditions must be met before the full benefits of decentralization can be reaped. First, for decentralization to increase allocative and productive efficiency, local governments need to have the authority to respond to local demand as well as adequate mechanisms for accountability. Because granting authority without accountability can lead to corruption and lower productive efficiency, decentralization needs to be accompanied by reforms that increase the transparency and accountability of local government. Second, functions need to be devolved to a low enough level of government for allocative efficiency to increase as a result of decentralization. Low-level governments are likely to be aware of local preferences and, if able to do so, are likely to adjust service delivery accordingly. Third, citizens should have channels to communicate their preferences and get their voices heard in local governments. But the existence of such channels is not enough. To effectively influence public policies and oversee local governments...

Promoting Good Governance with Social Funds and Decentralization

Parker, Andrew
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Relevância na Pesquisa
56.1%
Bad governance undermines development. Two important types of World Bank support for local governance are social funds and broadly based support for governments committed to decentralizing responsibility and power to local governments and other local institutions. But there are concerns that these two approaches, which address different elements of governance, sometimes work at cross-purposes. A study was therefore commissioned to examine the interaction between social funds and decentralization in Bolivia and Honduras (advanced decentralization), Peru and Zimbabwe (some decentralization), and Cambodia, Malawi, and Zambia (little or no decentralization). This Note is based on the findings of the study.

Subnational Data Requirements for Fiscal Decentralization : Case Studies from Central Eastern Europe

Yilmaz, Serdar; Hegedus, Jozsef; Bell, Michael E.
Fonte: Washington, DC: World Bank Publicador: Washington, DC: World Bank
EN_US
Relevância na Pesquisa
56.12%
Poverty is an outcome of interaction between economic, social, and political forces. The World Bank has emphasized poverty reduction in its programs and operational activities. With the launching of initiatives such as the poverty reduction strategy papers and the Comprehensive Development Framework, it has made considerable progress in integrating antipoverty programs into other lending operations. As mentioned in the World Development Report 2000/2001, Attacking Poverty (World Bank 2001b), poverty has many dimensions. It is not defined only by income, but also has political and sectoral (access to services) dimensions. Today, in most countries subnational governments are responsible for the delivery of services that affect these dimensions of poverty. Because subnational governments control increasingly higher shares of total public resources, their competence in designing public policies and delivering public services becomes crucial in influencing the level of poverty. Indeed, the literature on fiscal decentralization presents evidence that local services...

India : Fiscal Decentralization to Rural Governments

World Bank
Fonte: Washington, DC Publicador: Washington, DC
EN_US
Relevância na Pesquisa
66.2%
The objective of this study is to review panchayat finances, identify issues and make recommendations to improve the fiscal decentralization system. Using Kamataka and Kerala as case studies, this report describes the context for rural decentralization in India, summarizes the current fiscal situation of district, block and village panchayats, identifies the main problems arising from the current practice, and outlines a set of reform options that might better satisfy the objectives of the central and state governments. Kamataka and Kerala were examined because these two states are generally thought to be more advanced than others in implementing rural fiscal decentralization and are therefore relevant for drawing lessons for the rest of India. There is a hierarchical arrangement of center-state-local governance. The 73rd Amendment to the Constitution made India one of the most politically decentralized countries in the developing world. By the Constitution and in practice, local government has an urban and a rural stream. Rural local governments are divided into three levels: district (zilla)...

On the Measurement and Impact of Fiscal Decentralization

Ebel, Robert D.; Yilmaz, Serdar
Fonte: World Bank, Washington, D.C. Publicador: World Bank, Washington, D.C.
EN_US
Relevância na Pesquisa
56.19%
The typical post-Bretton Woods era development approach that emphasized central government-led development efforts has changed dramatically, and local governments have clearly emerged as players in development policy. The thinking about what is important to achieve in development objectives is changing as fiscal decentralization reforms are being pursued by many countries around the world. In this context, a number of studies have attempted to quantify the impact of decentralization by relating some measure of it to economic outcomes of fiscal stability, economic growth, and public sector size. But decentralization is surprisingly difficult to measure. Nearly all cases examining the relationship between decentralization and macroeconomic performance have relied on the Government Finance Statistics (GFS) of the International Monetary Fund. However, despite its merits, GFS falls short in providing a full picture of fiscal decentralization. For some countries, however, there is data that more accurately captures fiscal responsibilities among different types of governments.

Inter-governmental relations in the southern tablelands of New South Wales : a case-study in regionalism and decentralization

Wu, Mao-tsai
Fonte: Universidade Nacional da Austrália Publicador: Universidade Nacional da Austrália
Tipo: Thesis (Masters)
EN
Relevância na Pesquisa
66.11%
xii, 287, xviii l. : bibl., fold. maps; The aim of this thesis was to approach the study of inter-governmental relations in a way not previously tried by political scientists in Australia. It has generally been assumed that an outstanding feature of Australian government, as of social and economic affairs in the country, is its centralization and concentration. It was recognised that this picture was complicated, especially in government, by the federal division of functions between six States and the Commonwealth. But even here the emphasis has been on the division of functions into separate groups, with concentration and uniformity characterizing the administration of each group by the appropriate government. And even in relation to Federalism, the emphasis has been on the tendency to centralization through the concentration of financial power and resources in the Federal Government. Further, and as a result of this, political studies have been almost exclusively concerned with the politics and central departmental administration of Commonwealth and State Governments, while local government, and departmental administration at the local level, have been comparatively neglected. An opportunity for making a different approach seemed to be offered by the interest that developed in regionalism...

Indonesia's Decentralization After Crisis; Decentralizacao na Indonesia apos a crise Decentralizacion de Indonesia despues de la crisis

Ma, Jun; Hofman, Bert
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Tipo: Publications & Research :: Brief; Publications & Research
ENGLISH
Relevância na Pesquisa
56.15%
In 1999, the Indonesian Parliament adopted two laws requiring that drastic decentralization measures be implemented in fiscal 2001 in a "big bang" fashion. Several lessons can be drawn from Indonesia's experience. 1) Ideally, decentralization should be managed so that the devolution of fiscal resources occurs in line with the devolution of spending. In reality, politics determines the devolution of resources, often with little regard for spending responsibilities. 2) Spending responsibilities can be devolved to a level of government in line with its administrative capacities. 3) Every effort should be made to avoid delays in establishing regulations that detail the responsibilities of various levels of government. 4) Local governments should be assigned one or a few substantive taxes over which they have some rate of autonomy, to ensure local accountability and fiscal discipline.

Decentralization and the Challenge of Hard Budget Constraints; Descentralizacao e o desafio das rigidas contencoes orcamentarias

Rodden, Jonathan
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Tipo: Publications & Research :: Brief; Publications & Research
ENGLISH
Relevância na Pesquisa
56.12%
Since the early 1980s fiscal and political decentralization have spread around the world. But decentralization can encourage dangerous opportunistic behavior by state and local officials. Left unrestricted, such opportunism can undermine macroeconomic stability and other objectives. The most pressing manifestation of this problem is the softening of subnational budget constraints. The impact of decentralization on public sector efficiency and macroeconomic stability depends on a country's ability to prevent lower-level governments from passing on their liabilities to higher-level governments. This note draws on 11 countries to identify institutional factors associated with hard and soft budget constraints and extract policy lessons for other countries.

Decentralization in Madagascar

World Bank
Fonte: Washington, DC Publicador: Washington, DC
Tipo: Publications & Research :: Publication; Publications & Research :: Publication
ENGLISH; EN_US
Relevância na Pesquisa
76.08%
This paper takes stock of Madagascar's first 10 years of decentralization. As it happened in many other developing countries, particularly in Africa, Madagascar's decentralization process has seen reversals, uncertainties and lack of clarity all along. This explains why Madagascar, despite the experience with decentralization, remains a highly centralized country with only about 3-4 percent of expenditures spent below the center and with very few prerogatives decentralized to the local level. Notwithstanding the structural impediments to decentralization in poor countries, many positive lessons can be drawn from the Madagascar case, which point to the potentials of the decentralization process. This study provides a detailed analysis of local government finances and develops a methodology for measuring local financing needs (local fiscal gap methodology). Based on this analysis, the study argues that a lot can be gained from simplifying administrative arrangements and fiscal relationships. Instead of a full-blown and ambitious decentralization strategy...

FYR Macedonia : Decentralization Status Report

World Bank
Fonte: Washington, DC Publicador: Washington, DC
Tipo: Economic & Sector Work :: Policy Note; Economic & Sector Work
ENGLISH; EN_US
Relevância na Pesquisa
56.2%
To institutionalize the decentralization elements of the peace settlement in Macedonia, the Framework Agreement calls for specific changes in the Constitution, and three specific items of legislation: a new law on local governments specifying the functions they are to assume, a local finance law specifying how these functions are to be financed, and, a law revising the boundaries of local governments, on the basis of a new census. While the Constitutional amendments have been approved, progress on the rest of the legislative agenda has proceeded slowly. The census on which the territorial reform was to be based has only recently been completed. The local government law has been approved, but requires extensive subsidiary legislation before it can be implemented. The new finance law is only now in the drafting process. The next local elections are scheduled for 2004, thus a considerable amount of work will be required to ensure that the impact of decentralization will be perceptible to the electorate by that time. This paper is directed at two audiences: the first is the Government...

Madagascar : Decentralization

World Bank
Fonte: Washington, DC Publicador: Washington, DC
Tipo: Economic & Sector Work :: Other Public Sector Study; Economic & Sector Work
ENGLISH; EN_US
Relevância na Pesquisa
66.22%
The objective of this decentralization study is to provide analysis and policy advice to the new Malagasy government on how to proceed with the decentralization strategy it inherited from the previous government. The end of the post-crisis emergency recovery period creates the opportunity to correct the weaknesses of the previous strategy while building on the exiting achievements. The paper specifically aims to (i) analyze the institutional and fiscal context of decentralization and (ii) present the resulting challenges for service delivery and financing - with a particular focus on local governments. Benefiting from primary data from several hundred local governments, this study aims at proving recommendations of how to improve the functioning of communes in considering the institutional and fiscal parameters. The report is organized into four chapters, including the Introduction, which explain the political, institutional, and fiscal determinants that have been influencing Madagascar's decentralization process...

Decentralization and Local Democracy in the World : First Global Report by United Cities and Local Governments 2008

United Cities and Local Government; World Bank
Fonte: Washington, DC: United Cities and Local Government and the World Bank Publicador: Washington, DC: United Cities and Local Government and the World Bank
Tipo: Publications & Research :: Publication; Publications & Research :: Publication
ENGLISH
Relevância na Pesquisa
86.19%
This overall picture of decentralization and local democracy in African countries shows significant progress at the strictly institutional level. No country now publicly opposes the implementation of decentralization policies. Local governments exist in all countries, and elections are held to elect local authorities. The extent of such progress must, however, be set against a number of persistent obstacles that continue to hinder a real progression of decentralization in Africa. Difficulties remain within states concerning the transfer of financial resources needed to match the devolved responsibilities. Local governments also face difficulties in increasing their own resources (aside from state-transfers and grants) at a faster pace. Ensuring the availability of qualified human resources at the local level and improving public access to local services are also fundamental issues of concern.

Decentralization and Corruption : Evidence across Countries

Fisman, Raymond; Gatti, Roberta
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Tipo: Publications & Research :: Policy Research Working Paper; Publications & Research
ENGLISH; EN_US
Relevância na Pesquisa
76.16%
The relationship between decentralization of government activities and the extent of rent extraction by private parties is an important element in the recent debate on institutional design. The theoretical literature makes ambiguous predictions about this relationship, and it has remained virtually unexamined by empiricists. The authors make a first attempt at examining the issue empirically, by looking at the cross-country relationship between fiscal decentralization and corruption as measured by a number of different indices. Their estimates suggest that fiscal decentralization in government spending is significantly associated with lower corruption. Moreover, they find that the origin of a country's legal system - for example, civil versus common legal code - performs extremely well as an instrument for decentralization. The estimated relationship between decentralization, when so instrumented, and corruption is even stronger. The evidence suggests a number of interesting areas for future work, including investigating whether there are specific services for which decentralized provision has a particularly strong impact on political rent extraction...

Indonesia : Public Spending in a Time of Change

World Bank
Fonte: Washington, DC Publicador: Washington, DC
Tipo: Economic & Sector Work :: Country Economic Memorandum; Economic & Sector Work
ENGLISH; EN_US
Relevância na Pesquisa
56.11%
The study identifies strategic priorities for restoring sound public finances, emphasizing the need to maintain fiscal sustainability, under a constrained budget, and the need to improve the processes for making budgetary allocations, and budget implementation, towards greater fiscal transparency. It reviews Indonesia's public spending during the crisis, and the unavoidable build-up of fiscal pressure, its indebtedness, and fiscal risks, coupled with policy implications. Improvements to the budget allocation process are examined, focusing on budgetary management processes, across levels of government, and on the impact of decentralization - which could possibly reinforce civil society participation. A shift in the fiscal policy focus, towards maintaining fiscal sustainability, and ensuring economic recovery is recommended. Nonetheless, risks may threaten fiscal sustainability, namely, macroeconomic fluctuations, contingent liabilities, and decentralization. To minimize risks, the study suggests a combination of domestic revenue generation efforts...

Implementation of Kosovo's action plan on decentralization : [presentation given on September 6, 2011]

Ukimeraj, Rozafa
Fonte: Rochester Instituto de Tecnologia Publicador: Rochester Instituto de Tecnologia
Tipo: Capstone Project
EN
Relevância na Pesquisa
66.15%
Kosovo is passing through a dramatic transitional phase of political, economic and social development. In these circumstances decentralization has taken primacy among political and institutional developments. This capstone project addressed the problem of the implementation of the Action Plan on Decentralization in Kosovo, used by the government as a “tool”, to implement the local reform in Kosovo. The capstone project examined the main issues through the process of decentralization, including the acceptance of the decentralization by the Albanians, being the ethnic majority in Kosovo, and the impact of implementation of decentralization on the integration of Serbs.; 1. General information on the organization and functioning of local government in Kosovo -- 2. Legal framework for local self-government in the Republic of Kosovo -- 3. Reform of local government and decentralization in Kosovo-opportunities and challenges -- 4. Decnetralization, the case of Kosovo -- 5. Implementation of the plan of action on decentralization -- 6. The process of reform of local government in the countries of the region -- 7. Discussion challenges and recommendations.