Decentralization and Service Delivery

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 cost...

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Bibliographic Details
Main Authors:	Ahmad, Junaid, Devarajan, Shantayanan, Khemani, Stuti, Shah, Shekhar
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ACCOUNTABILITY ACCOUNTABILITY MECHANISMS ACCOUNTING ACCOUNTING PROCEDURES ADMINISTRATIVE COSTS ADMINISTRATIVE DECENTRALIZATION ADMINISTRATIVE RESPONSIBILITIES ALLOCATION OF RESOURCES ANECDOTAL EVIDENCE ASSETS ASSIGNMENT OF TAXES AUTHORITY BALANCED BUDGET REQUIREMENTS BANKRUPTCY BANKS BORROWING COSTS BUDGET INFORMATION BUDGET PRIORITIES BUDGETARY ALLOCATIONS BUREAUCRACY BUREAUCRAT BUSINESS TAXES CAPITAL MARKETS CENTRAL GOVERNMENT CENTRAL GOVERNMENTS CENTRAL TRANSFERS CITIZEN CITIZENS CIVIL SOCIETY COMMUNITIES COMMUNITY LEADERS CONSENSUS CONSTITUENCIES CONSTITUTION CORRUPTION COUNCILS COURT SYSTEM CROWDING OUT DEBT DECENTRALIZATION DECENTRALIZATION EFFORTS DECENTRALIZATION PROCESS DECENTRALIZATION REFORMS DECENTRALIZED SERVICE DELIVERY DECISION MAKERS DECISION MAKING DECISION- MAKING DECISION- MAKING AUTHORITY DECONCENTRATION DEFICITS DEMOCRACY DEMOCRATIZATION DEVOLUTION DISCLOSURE DISCRIMINATION DISTRICT GOVERNMENTS DISTRICTS EDUCATION OUTCOMES EDUCATION SERVICES ELECTED REPRESENTATIVES ELECTORAL COMPETITION ELECTORAL DEMOCRACY ELECTORAL RULES ELECTORAL SYSTEM EMERGING DEMOCRACIES ETHNIC GROUPS EXPENDITURE EXPENDITURE RESPONSIBILITIES EXTERNALITIES FINANCIAL INFORMATION FINANCIAL MANAGEMENT FINANCIAL MARKETS FINANCIAL RESOURCES FISCAL FISCAL DECENTRALIZATION FORMAL INSTITUTIONS GOVERNMENT BORROWING GOVERNMENT DECISION GOVERNMENT SPENDING HUMAN RESOURCES INEQUALITY INFANT MORTALITY INFORMATION ASYMMETRIES INFRASTRUCTURE SERVICES INSTITUTIONAL CAPACITY INSURANCE INTERGOVERNMENTAL FISCAL RELATIONS INTERGOVERNMENTAL SYSTEM INTERGOVERNMENTAL TRANSFERS INVESTMENT SPENDING JURISDICTION JURISDICTIONS LAWS LEGAL AUTHORITY LEGISLATIVE OFFICE LEVELS OF GOVERNMENT LOCAL ACCOUNTABILITY LOCAL AUTONOMY LOCAL CAPACITY LOCAL DEMOCRACY LOCAL ELECTIONS LOCAL EXPENDITURES LOCAL GOVERNMENT LOCAL GOVERNMENTS LOCAL LEVELS LOCAL POLICIES LOCAL POLITICIANS LOCAL TAX MANDATES MEDIA MEDICAL FACILITIES MORAL HAZARD MORTALITY MUNICIPALITIES NATIONAL ELECTIONS NATIONAL GOVERNMENTS NATIONAL INCOME NATIONAL LEVEL NATIONAL SERVICE NATIONAL TAX REFORM PARLIAMENT POLICY RESEARCH POLITICAL COMPETITION POLITICAL ECONOMY POLITICAL INFLUENCE POLITICAL INSTITUTIONS POLITICAL PARTICIPATION POLITICAL PARTIES POLITICAL POWER POLITICIANS PRIMARY EDUCATION PRIMARY SCHOOL PRIVATE SECTOR PROVINCIAL GOVERNMENTS PUBLIC ADMINISTRATION PUBLIC ADMINISTRATION REFORM PUBLIC EXPENDITURES PUBLIC FINANCES PUBLIC GOODS PUBLIC INVESTMENT PUBLIC POLICIES PUBLIC POLICY PUBLIC RESOURCES PUBLIC SECTOR PUBLIC SERVICE PUBLIC SERVICE PROVISION PUBLIC SERVICES PUBLIC SPENDING REGULATORY MECHANISMS REGULATORY POWERS REPRESENTATIVES RESOURCE ALLOCATION RESOURCE DISTRIBUTION RESPONSIBLE REVENUE SHARING SANITATION SERVICE DELIVERY SERVICE PROVIDERS SERVICE PROVISION SOCIAL HETEROGENEITY SOCIAL NETWORKS SOCIAL PROCESSES SOCIAL SERVICES SUBNATIONAL GOVERNMENT SUBNATIONAL GOVERNMENTS SURCHARGES TAX ADMINISTRATION TAX BASE TAX RATES TAX REFORM VILLAGE GOVERNMENTS VOTING
Online Access:	http://documents.worldbank.org/curated/en/2005/05/5796041/decentralization-service-delivery http://hdl.handle.net/10986/8933

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Summary:	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, the process of implementing decentralization can be as important as the design of the system in influencing service delivery outcomes.

Decentralization and Service Delivery

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