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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
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37.26%
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...

Decentralization (Localization) and Corruption : New Cross-Country Evidence

Ivanyna, Maksym; Shah, Anwar
Fonte: Banco Mundial Publicador: Banco Mundial
Relevância na Pesquisa
37.19%
This paper attempts to improve the understanding and measurement of decentralization and its relationship with corruption in a worldwide context. This is done by presenting the conceptual underpinnings of such relationship as well as using superior and more defensible measures of both decentralization in its various dimensions as well as corruption for a sample of 182 countries. It is the first paper that treats various tiers of local governments (below the inter-mediate order of government) as the unit of comparative analysis. In contrast, previous analyses erroneously focused on subnational governments as the unit of analysis which yields invalid cross-country comparisons. By pursuing rigorous econometric analysis, the paper demonstrates that decentralization, when properly measured to mean moving government closer to people by empowering local governments, is shown to have significant negative effect on the incidence of corruption regardless of the choice of the estimation procedures or the measures of corruption used. In terms of various dimensions of decentralized local governance...

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

Khemani, Stuti
Fonte: Banco Mundial Publicador: Banco Mundial
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37.17%
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.

Decentralization in Client Countries : An Evaluation of World Bank Support, 1990-2007

Independent Evaluation Group
Fonte: Washington, DC : World Bank Publicador: Washington, DC : World Bank
EN_US
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37.22%
The Independent Evaluation Group (IEG) assessed the effectiveness of Bank support for decentralization between fiscal 1990 and 2007 in 20 countries, seeking to inform the design and implementation of future support. Given the difficulties of measuring the results of decentralization, the evaluation used intermediate outcome indicators such as strengthened legal and regulatory frameworks for intergovernmental relations, improved administrative capacity, and increased accountability of subnational governments and functionaries to higher levels of government and to citizens to assess the results of Bank support in these 20 countries. To examine potential lessons at a sectoral level, the evaluation also assessed whether Bank support for decentralization improved intermediate outcomes for service delivery in the education sector in 6 of the 20 countries. Bank support contributed to more effective decentralization substantially in more than one-third of the 20 cases and modestly in the others. The most successful aspects of Bank support pertained to the legal frameworks for intergovernmental relations...

Decentralization and the Provision of Public Services : Framework and Implementation

Kim, Aehyung
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
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37.17%
This paper discusses decentralization (administrative, fiscal and political) of government in public service provision. It aims to facilitate understanding among practitioners, policy makers, and scholars about what decentralization entails in practice compared to theory. A review of the empirical literature and experience of decentralization is presented. The paper highlights issues that policy makers in developing and transitional countries should be aware of when reforming government, considering their unique political and economic environment. The author argues that decentralization produces efficiency gains stemming from inter-jurisdictional competition, enhanced checks and balances over the government through voting at the subnational level, and informational advantages due to proximity to citizens. By contrast, arguments against decentralization include the risk of an increased level of corruption, coordination problems stemming from multiple layers of government, low capacity of subnational government...

Sequencing Fiscal Decentralization

Bahl, Roy; Martinez-Vazquez, Jorge
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Relevância na Pesquisa
37.28%
While there is extensive knowledge about how to design fiscal decentralization policies, considerably less is understood about how a decentralization program should be sequenced and implemented. Countries embarking on decentralization often struggle with decisions about the essential components of decentralization, including the order of an introduction of decentralization policies, the number of years necessary to bring a full program on line, and the components of the transition strategy. The authors argue that the sequencing of decentralization policies is an important determinant of its success. The consequences of a poorly sequenced decentralization program can range from minor delays and complications to ineffectiveness and subsequent failing support of decentralization efforts, macroeconomic instability, and fundamental failure in public sector delivery. At a minimum, the strategy of "making it up as we go" will not lead to the same structure of decentralization as will a planned strategy. The paper raises two questions: First, is there an optimal sequencing for decentralization policies and implementation? The answer is that there is, and that following these sequencing rules can reduce the costs and risks of implementing fiscal decentralization. Second...

Decentralization and Service Delivery

Ahmad, Junaid; Devarajan, Shantayanan; Khemani, Stuti; Shah, Shekhar
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Relevância na Pesquisa
37.19%
Dissatisfied with centralized approaches to delivering local public services, a large number of countries are decentralizing responsibility for these services to lower-level, locally elected governments. The results have been mixed. The paper provides a framework for evaluating the benefits and costs, in terms of service delivery, of different approaches to decentralization, based on relationships of accountability between different actors in the delivery chain. Moving from a model of central provision to that of decentralization to local governments introduces a new relationship of accountability-between national and local policymakers-while altering existing relationships, such as that between citizens and elected politicians. Only by examining how these relationships change can we understand why decentralization can, and sometimes cannot, lead to better service delivery. In particular, the various instruments of decentralization-fiscal, administrative, regulatory, market, and financial-can affect the incentives facing service providers, even though they relate only to local policymakers. Likewise, and perhaps more significantly, the incentives facing local and national politicians can have a profound effect on the provision of local services. Finally...

Decentralization of River Basin Management : A Global Analysis

Dinar, Ariel; Kemper, Karin; Blomquist, William; Diez, Michele; Sine, Gisèle; Fru, William
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Relevância na Pesquisa
37.2%
Decentralization and increased stakeholder involvement have been major elements of water sector reform as ways to promote sustainable and integrated resource management particularly of river basins. Based on an analytical framework for relating decentralization and stakeholder involvement to improved river basin management, this paper infers several hypotheses about factors associated with greater or lesser likelihood of success of the decentralization process using data from 83 river basins worldwide. The results suggest that physical, political, economic, financial, and institutional characteristics of the basin do affect the process and the level of performance of the decentralization. In particular, the presence of water scarcity may be a stimulus to reform, uniting the stakeholders in the basin and leading to better performance; organized user groups push for the initiation of decentralization reforms but may be associated with costs to the process and difficulty of achieving decentralization; the existence of dispute resolution mechanisms supports stakeholder involvement and improves decentralization performance; where stakeholders accepted greater financial responsibility, complying with tariffs and contributing to the budget for basin management...

Decentralization and Governance in the Ghana Health Sector

Couttolenc, Bernard F.
Fonte: Washington, DC: World Bank Publicador: Washington, DC: World Bank
Relevância na Pesquisa
37.27%
In recent years, many countries, both developed and developing, have engaged in a process of decentralization of health service delivery and/or other functions of the health system. In most cases, decentralization has been adopted to improve accountability to local population, efficiency in service provision, equity in access and resource distribution, or to increase resource mobilization. Ghana has a long history of local government, going back to pre-independence times of the nineteenth century. By 1859 Municipal Councils were established in the major coastal towns of the then Gold Coast. Native Authorities, Councils and Courts were also established to administer law and order under the indirect authority of the colonial government; the limitations of this system was repeatedly put forward in the 1930s and 1940s, and reforms were introduced in 1951 by the Local Government Ordinance (Ahwoi 2010). The government has embarked in a decentralization policy since independence, which was strengthened and amplified by the local government act of 1993 and other legislations. At the present the Government of Ghana (GOG) is committed to strengthen the implementation of decentralization and for that purpose revise and strengthen the policy and regulatory framework governing decentralization. In spite of this long history and successive waves of decentralization reforms...

Cameroon - The Path to Fiscal Decentralization : Opportunities and Challenges

World Bank
Fonte: Washington, DC Publicador: Washington, DC
EN_US
Relevância na Pesquisa
37.19%
Decentralization in Cameroon is an instrument to meet multiple objectives. This report takes stock of Cameroon s experience with decentralization. It examines whether the design has been coherently formulated and preconditions for decentralization have been put in place. It also suggests short to medium-term proposals to make the process work better, within the constraints of significant data limitations. The design of the decentralization process in Cameroon reflects the normative approaches to decentralization-assuming benign officials and policy makers, and stipulating a normative allocation of responsibilities. In reality, a political economy story is at play, as suggested by developments in the positive literature that drop the assumption of disinterested officials. The legal framework relating to decentralization is overlapping, cumbersome and contradictory, and in many respects open to different interpretations. The main difficulty is that decentralized functions are ill-defined and not distinct from deconcentrated operations of the central government. This report examines the building blocks of the decentralization framework-starting in chapter one with a description of the status quo and the methods to be used. In chapter two discuss the unclear legal framework in Cameroon. The fuzzy spending responsibilities and lack of effective strategy to address the extent and scope of decentralization are examined in chapter three. The weaknesses in information flows and public financial management (PFM) issues...

How Close Is Your Government to Its People? Worldwide Indicators on Localization and Decentralization

Ivanyna, Maksym; Shah, Anwar
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
EN_US
Relevância na Pesquisa
37.17%
This paper is intended to provide an assessment of the impact of the silent revolution of the last three decades on moving governments closer to people to establish fair, accountable, incorruptible and responsive governance. To accomplish this, a unique data set is constructed for 182 countries by compiling data from a wide variety of sources to examine success toward decentralized decision making across the globe. An important feature of this data set is that, for comparative purposes, it measures government decision making at the local level rather than at the sub-national levels used in the existing literature. The data are used to rank countries on political, fiscal and administrative dimensions of decentralization and localization. These sub-indexes are aggregated and adjusted for heterogeneity to develop an overall ranking of countries on the closeness of their government to the people. The resulting rankings provide a useful explanation of the Arab Spring and other recent political movements and waves of dissatisfaction with governance around the world.

Peru : The Decentralization Process and its Links with Public Expenditure Efficiency

World Bank
Fonte: Washington, DC Publicador: Washington, DC
EN_US
Relevância na Pesquisa
37.17%
Decentralization in Peru is an ongoing process that is in its infancy and faces key challenges. This study aims to take stock of the process and identify these challenges. The main goal of the report is to help think through these issues with a view of identifying priorities and opportunities for fruitful engagement in this area. Much of the stock-taking serves as an introduction to the topic for the general reader and draws on what has become by now extensive secondary literature. The report distils the key challenges of the decentralization process and adds value in three specific areas. A first distinct contribution of this report is to highlight the importance of political economy factors in explaining the ebbs and flows of the decentralization process. Second, the report provides new data on truly decentralized spending as opposed to deconcentrated as well as on public spending per capita across districts. Third, this report provides a novel analysis of the efficiency of public spending across departments in Peru. The report compiles measures of public sector performance and efficiency for education...

India : Fiscal Decentralization to Rural Governments

World Bank
Fonte: Washington, DC Publicador: Washington, DC
EN_US
Relevância na Pesquisa
37.17%
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
37.19%
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.

Achieving Accountability Through Decentralization: Lessons for Integrated River Basin Management

Mody, Jyothsna
Fonte: World Bank, Washington, D.C. Publicador: World Bank, Washington, D.C.
EN_US
Relevância na Pesquisa
37.23%
While decentralization holds out the promise of increased flexibility and efficiency, the preconditions for realizing it are daunting. To draw lessons for productive decentralization in integrated river basin management, this paper surveys the decentralization experience in education, health care, roads, irrigation, and public infrastructure services. Case studies reveal that the prime focus in the design of a decentralized structure must be accountability, based on principles of subsidiarity, transparency, and allocation of property rights. While some debates are sector-specific, others, such as the need for political and financial accountability, the related data requirements, educating stakeholders and potential beneficiaries of the new system, and ensuring effective participation are true of decentralization wherever it is to unfold. In turn, initial conditions and the adaptation of political leadership to suit the historical context determine the success of decentralization. Four issues demand high priority in integrated river basin management. These are (1) overcoming financial inadequacy at the local level; (2) commitment to upgrading skills...

Decentralization, Accountability and Local Services in Sierra Leone : Situation Analysis, Key Challenges and Opportunities for Reform

World Bank
Fonte: Washington, DC Publicador: Washington, DC
EN_US
Relevância na Pesquisa
37.19%
Following years of civil war that ended in 2002, Sierra Leone has pursued a policy of decentralization, devolving responsibility for many government functions to the Local Council level. The aims of this policy include achieving a more equitable and inclusive access to public services across the national territory, in part to alleviate regional inequities that contributed to the civil war. The implementation of the decentralization policy has faced many obstacles, however, including the need to rebuild local government institutions and capacity after 30 years of centrally dominated governance; the limited devolution of financial resources; and multifaceted political economy hurdles. This report, first, analyzes the current state of decentralization in Sierra Leone; second, identifies the most prominent challenges to continued decentralization; and, third, discusses options for the way forward. The report draws on qualitative and quantitative data collected from both central and local government stakeholders...

Republic of Burundi Fiscal Decentralization and Local Governance : Managing Trade-Offs to Promote Sustainable Reforms

World Bank
Fonte: Washington, DC Publicador: Washington, DC
EN_US
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37.24%
Despite the remarkable progress achieved since the end of the conflict, Burundi still faces significant development challenges. Since 2005, the Government of Burundi has embarked on a potentially transformative process of decentralization, with the aim of strengthening social cohesion, improving local governance, and promoting access to basic infrastructure and service delivery. The weakness of the communal tax system, coupled with low mobilization of local revenue and nonexistent (current) or negligible (capital) transfers from the national budget threaten the financial viability of communes, which struggle to support even basic operating costs. Addressing a specific government request, the present study aims to provide concrete policy recommendations to help the Government of Burundi improve the financial and institutional sustainability of the decentralization reform process, while enabling communes to address popular demands and deliver better services. The report will also look at the implications of these macro-level challenges at the sectoral level...

Republic of Burundi Fiscal Decentralization and Local Governance

World Bank
Fonte: Washington, DC Publicador: Washington, DC
Tipo: Relatório
EN_US
Relevância na Pesquisa
37.2%
This study is highly selective and organized into four thematic chapters. Specifically, chapter 1 provides a snapshot of Burundi’s political and macroeconomic context, and reviews the evolution of the decentralization process to better understand how institutional, political, and bureaucratic dynamics have shaped the historical trajectory of decentralization and generated the outcomes observed today. Chapter 2 provides a systematic investigation of the status of fiscal decentralization in Burundi, and identifies key policy issues to be considered to ensure the medium-term sustainability of the reform process while at the same time addressing the short-term financial needs of communes. Chapter 3 provides an in-depth diagnostic of a key service delivery responsibility recently devolved to communes—the provision of land registration services—and discusses the challenges and opportunities related to ongoing efforts to scale up access to these land services across 116 rural communes and Bujumbura. Chapter 4 shifts the focus to the nature of statecitizen relations in an effort to better understand how citizen engagement in the decision-making process may be improved and local authorities held accountable for the provision of basic services.

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
37.19%
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
37.22%
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...