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This paper explores the impact of fiscal decentralization on the efficiency of public service delivery. It uses a stochastic frontier method to estimate time-varying efficiency coefficients and analyzes the impact of fiscal decentralization on those efficiency coefficients. The findings indicate that fiscal decentralization can improve the efficiency of public service delivery but only under specific conditions. First, the decentralization process requires adequate political and institutional environments. Second, a sufficient degree of expenditure decentralization seems necessary to obtain favorable outcomes. Third, decentralization of expenditure needs to be accompanied by sufficient decentralization of revenue. Absent those conditions, fiscal decentralization can worsen the efficiency of public service delivery.
Examines the fundamental issue of how citizens get government officials to provide them with the roads, schools, and other public services they need by studying communities in rural China. In authoritarian and transitional systems, formal institutions for holding government officials accountable are often weak. The state often lacks sufficient resources to monitor its officials closely, and citizens are limited in their power to elect officials they believe will perform well and to remove them when they do not. The answer, Lily L. Tsai found, lies in a community's social institutions. Even when formal democratic and bureaucratic institutions of accountability are weak, government officials can still be subject to informal rules and norms created by community solidary groups that have earned high moral standing in the community.
This book argues that fiscal federalism will consistently deliver on its governance promises only when democratic decentralization is combined with the integration of political parties. It formalizes this argument and, using new data on subnational political institutions, tests it with models of education, health, and infrastructure service delivery in 135 countries across 30 years. It also presents comparative case studies of Senegal and Nigeria. The book emphasizes that a “fine balance” in local governance can be achieved when integrated party structures compensate for the potential downsides of a decentralized state.
Federal Dynamics aids understanding of how federal systems change over time. It assembles contributions from leading scholars in the field of comparative federalism to discuss the value of different analytical tools and theoretical approaches for exploring the dynamics of federal systems.
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.
This publication addresses factors that promote or inhibit successful provision of the four key international public goods: financial stability, international trade regime, international diffusion of technological knowledge and global environment. Without these goods, developing countries are unable to compete, prosper or attract capital from abroad. The need for public goods provision is also recognized by the Millennium Development Goals, internationally agreed goals and targets for knowledge, health, governance and environmental public goods. The Report addresses the nature of required policies and institutions using the modern principles of collective action.
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.
Faguet identifies the factors that determine the outcomes of national decentralization on the local level
Analyzes scale effects across a range of political dimensions, encompassing different political levels using a multi-method approach.