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The subnational dimension of infrastructure has emerged as one of the greatest challenges in contemporary public finance policy and management. Ensuring the efficient provision of infrastructure represents a challenge for all countries irrespective of their level of centralization or decentralization. This book proposes an innovative approach for the strengthening of decentralized public investment and infrastructure management. Decentralization and Infrastructure in the Global Economy: From Gaps to Solutions covers the most important aspects of infrastructure investment in a decentralized setting. It discusses infrastructure gaps and the quality of subnational spending; how functional responsibilities, financing and equalization can be designed; sector-specific arrangements in high expenditure areas, such as health, education and roads; key steps of the public investment cycle and management; and analyses the political economy and corruption challenges that typically accompany decentralized infrastructure projects. This book challenges some of the well-accepted principles of intergovernmental fiscal relations and will be useful to researchers and practitioners of public finance policy and management.
Nearly all countries worldwide are now experimenting with decentralization. Their motivation are diverse. Many countries are decentralizing because they believe this can help stimulate economic growth or reduce rural poverty, goals central government interventions have failed to achieve. Some countries see it as a way to strengthen civil society and deepen democracy. Some perceive it as a way to off-load expensive responsibilities onto lower level governments. Thus, decentralization is seen as a solution to many different kinds of problems. This report examines the origins and implications decentralization from a political economy perspective, with a focus on its promise and limitations. It explores why countries have often chosen not to decentralize, even when evidence suggests that doing so would be in the interests of the government. It seeks to explain why since the early 1980s many countries have undertaken some form of decentralization. This report also evaluates the evidence to understand where decentralization has considerable promise and where it does not. It identifies conditions needed for decentralization to succeed. It identifies the ways in which decentralization can promote rural development. And it names the goals which decentralization will probably not help achieve.
Demand for decentralization is strong in most parts of the world. This close look at the negative side effects of improperly appled decentralization is not an attack on decentralization but an effort to prevent its misapplication -- and to promote fuller understanding and wiser use of this potentially desirable policy.
The subnational dimension of infrastructure has emerged as one of the greatest challenges in contemporary public finance policy and management. Ensuring the efficient provision of infrastructure represents a challenge for all countries irrespective of their level of centralization or decentralization. This book proposes an innovative approach for the strengthening of decentralized public investment and infrastructure management. Decentralization and Infrastructure in the Global Economy: From Gaps to Solutions covers the most important aspects of infrastructure investment in a decentralized setting. It discusses infrastructure gaps and the quality of subnational spending; how functional responsibilities, financing and equalization can be designed; sector-specific arrangements in high expenditure areas, such as health, education and roads; key steps of the public investment cycle and management; and analyses the political economy and corruption challenges that typically accompany decentralized infrastructure projects. This book challenges some of the well-accepted principles of intergovernmental fiscal relations and will be useful to researchers and practitioners of public finance policy and management.
Reviews recent lessons about decentralized governance and implications for future development programs and policies.
World Development Report 1994 examines the link between infrastructure and development and explores ways in which developing countries can improve both the provision and the quality of infrastructure services. In recent decades, developing countries have made substantial investments in infrastructure, achieving dramatic gains for households and producers by expanding their access to services such as safe water, sanitation, electric power, telecommunications, and transport. Even more infrastructure investment and expansion are needed in order to extend the reach of services - especially to people living in rural areas and to the poor. But as this report shows, the quantity of investment cannot be the exclusive focus of policy. Improving the quality of infrastructure service also is vital. Both quantity and quality improvements are essential to modernize and diversify production, help countries compete internationally, and accommodate rapid urbanization. The report identifies the basic cause of poor past performance as inadequate institutional incentives for improving the provision of infrastructure. To promote more efficient and responsive service delivery, incentives need to be changed through commercial management, competition, and user involvement. Several trends are helping to improve the performance of infrastructure. First, innovation in technology and in the regulatory management of markets makes more diversity possible in the supply of services. Second, an evaluation of the role of government is leading to a shift from direct government provision of services to increasing private sector provision and recent experience in many countries with public-private partnerships is highlighting new ways to increase efficiency and expand services. Third, increased concern about social and environmental sustainability has heightened public interest in infrastructure design and performance.
This book draws on experiences in developing countries to bridge the gap between the conventional textbook treatment of fiscal decentralization and the actual practice of subnational government finance. The extensive literature about the theory and practice is surveyed and longstanding problems and new questions are addressed. It focuses on the key choices that must be made in decentralizing, on how economic and political factors shape the choices that countries make, and on how, by paying more attention to the need for a more comprehensive approach and the critical connections between different components of decentralization reform, everyone involved might get more for their money.
A Brookings Institution Press and Ash Center for Democratic Governance and Innovation publication The trend toward greater decentralization of governance activities, now accepted as commonplace in the West, has become a worldwide movement. This international development—largely a product of globalization and democratization—is clearly one of the key factors reshaping economic, political, and social conditions throughout the world. Rather than the top-down, centralized decisionmaking that characterized communist economies and Third World dictatorships in the twentieth century, today's world demands flexibility, adaptability, and the autonomy to bring those qualities to bear. In this thought-provoking book, the first in a new series on Innovations in Governance, experts in government and public management trace the evolution and performance of decentralization concepts, from the transfer of authority within government to the sharing of power, authority, and responsibilities among broader governance institutions. This movement is not limited to national government—it also affects subnational governments, NGOs, private corporations, and even civil associations. The contributors assess the emerging concepts of decentralization (e.g., devolution, empowerment, capacity building, and democratic governance). They detail the factors driving the movement, including political changes such as the fall of the Iron Curtain and the ascendance of democracy; economic factors such as globalization and outsourcing; and technological advances (e.g. increased information technology and electronic commerce). Their analysis covers many different contexts and regions. For example, William Ascher of Claremont McKenna College chronicles how decentralization concepts are playing out in natural resources policy, while Kadmeil Wekwete (United Nations) outlines the specific challenges to decentralizing governance in sub-Saharan Africa. In each case, contributors explore the objectives of a decentralizing strategy as well as the benefits and difficulties that will likely result.
Centralized, top-down management of water resources through regulations has created unnecessary economic burdens upon users. More flexible decentralized controls through the use of economic incentives have gained acceptance over the past decade. The theme of this book is the increasing efforts throughout water-scarce regions to rely upon economic incentives and decentralized mechanisms for efficient water management and allocation. The book begins with a section of introductory chapters describing water systems, institutions, constraints, and similarities in the following regions: Israel and the Middle East, Turkey, California, Florida, and Australia. Four of these regions face similar climates with wet winters and dry summers. Florida has a more even seasonal distribution of rainfall, yet it uses similar management strategies in controlling groundwater demand and water quality. The book concludes with a section on water management case studies. These case studies examine issues of conflict related to both water quality and water quantity. While the case studies address both international and intranational concerns in specific regions of the world, they portray broad principles that are applicable to many regions.