Is Decentralization Good For Development?

Perspectives from Academics and Policy Makers

Edited by Jean-Paul Faguet and Caroline Pöschl

Integrates high-level policymaker experience with cutting-edge academic research
Analysis based on solid empirical evidence and deep policy insight that leads to concrete lessons
Written in clear, direct language
Technical aspects of rigorous research remain mostly in the background
Engaging stories are used to make analytical points
Broad geographical coverage across Asia, Latin America, Africa and some developed countries

Is Decentralization Good For Development?

Perspectives from Academics and Policy Makers

Edited by Jean-Paul Faguet and Caroline Pöschl

Description

Is decentralisation good for development? This book offers insights and lessons that help us understand when the answer is 'Yes', and when it is No'. It shows us how decentralisation can be designed to drive development forward, and focuses attention on how institutional incentives can be created for governments to improve public sector performance and strengthen economies in ways that enhance citizen well-being. It also draws attention to the political motives behind decentralisation reforms and how these shape the institutions that result.

This book brings together academics working at the frontier of research on decentralization with policymakers who have implemented reform at the highest levels of government and international organizations. Its purpose is to marry policymakers' detailed knowledge and insights about real reform processes with academics' conceptual clarity and analytical rigor. This synthesis naturally shifts the analysis towards deeper questions of decentralization, stability, and the strength of the state. These are explored in Part 1, with deep studies of the effects of reform on state capacity, political and fiscal stability, and democratic inclusiveness in Bolivia, Pakistan, India, and Latin America more broadly. These complex questions - crucially important to policymakers but difficult to address with statistics - yield before a multipronged attack of quantitative and qualitative evidence combined with deep practitioner insight. How should reformers design decentralisation? Part 2 examines these issues with evidence from four decades of reform in developing and developed countries. What happens after reform is implemented? Decentralization and local service provision turns to decentralization's effects on health and education services, anti-poverty programs with original evidence from 12 countries across Africa, Asia, and Latin America.

Is Decentralization Good For Development?

Perspectives from Academics and Policy Makers

Edited by Jean-Paul Faguet and Caroline Pöschl

1: Is Decentralization Good For Development? Perspectives from Academics and Policy Makers, Jean-Paul Faguet and Caroline Pöschl
Part I: Decentralization, Stability and the Strengthening of the State
2: Why I Decentralized Bolivia, Gonzalo Sánchez de Lozada and Jean-Paul Faguet
3: Breaking the Countercyclical Pattern of Local Democracy in Pakistan, Ali Cheema, Adnan Q. Khan, and Roger Myerson
4: Inclusive Governance for Inclusive Development: The History, Politics and Economics of Panchayat Raj, Mani Shankar Aiyar
5: Is Latin America on the Path to Achieving Sustainable Fiscal Decentralization?, Matteo Grazzi and Fidel Jaramillo
6: Does Decentralization Strengthen or Weaken the State? Authority and Social Learning in a Supple State, Jean-Paul Faguet, Ashley M. Fox, and Caroline Pöschl
Part II: Designing Decentralization: Taxes, Transfer, and Expenditures
7: The Fiscal Interest Approach: The Design of Tax and Transfer Systems, Caroline Pöschl and Barry R. Weingast
8: Maintaining Taxes at the Centre Despite Decentralization: Interactions with National Reforms, Giorgio Brosio and Juan Pablo Jimenez
9: Political Capture of Decentralization: Vote Buying through Grants to Local Jurisdictions, Stuti Khemani
Part III: Decentralization and Local Service Provision
10: Does yardstick competition influence local government fiscal behaviour in the Philippines?, Joseph J. Capuno, Stella A. Quimbo, Aleli D. Kraft, Carlos Antonio R. Tan, Jr., and Vigile Marie B. Fabella
11: Area-Based Competition and Awards as a Motivation Tool for Public Service Provision: The Experience of Xining, China, Bingqin Li and Yongmei Zhang
12: Empirical Studies of an Approach to Decentralization: 'Decision Space' in Decentralized Health Systems, Thomas J. Bossert
13: Political Participation, Clientelism, and Targeting of Local Government Programs: Results from a Rural Household Survey in West Bengal, India, Pranab Bardhan, Sandip Mitra, Dilip Mookherjee, and Abhirup Sarkar

Is Decentralization Good For Development?

Perspectives from Academics and Policy Makers

Edited by Jean-Paul Faguet and Caroline Pöschl

Author Information

Edited by Jean-Paul Faguet, Professor of the Political Economy of Development, London School of Economics and Political Science, and Caroline Pöschl, PhD student, London School of Economics and Political Science

Jean-Paul Faguet is Professor of the Political Economy of Development at the London School of Economics. He is also Chair of the Decentralization Task Force at Columbia University's Initiative for Policy Dialogue. His research blends quantitative and qualitative methods to investigate the institutions and organizational forms that underpin rapid development. He has published extensively in the academic literature, including Governance from Below: Decentralization and Popular Democracy in Bolivia, which won the W.J.M. Mackenzie Prize for best political science book of 2012. His teaching and research focus on comparative political economy, new institutional economics, economic development and economic history.

Caroline Pöschl is a Ph.D. candidate in the Department of International Development, London School of Economics and Political Science. Her dissertation explores the relationship between taxation and accountability at the local government level in Mexico. Caroline has experience working on decentralisation, subnational management, and taxation at the World Bank and Inter-American Development Bank. Her research interests include local governance and decentralisation.

Contributors:

Mani Shankar Aiyar, Government of India
Pranab Bardhan, University of California, Berkeley
Thomas J. Bossert, Harvard School of Public Health
Giorgio Brosio, University of Turin
Joseph J. Capuno, University of the Philippines
Ali Cheema, Lahore University of Management Sciences
Vigile Marie B. Fabella, University of the Philippines
Jean-Paul Faguet, London School of Economics
Ashley M. Fox, Harvard University
Matteo Grazzi, Inter-American Development Bank
Fidel Jaramillo, Inter-American Development Bank
Juan Pablo Jimenez, ECLA
Adnan Q. Khan, London School of Economics
Stuti Khemani, World Bank
Aleli D. Kraft, University of the Philippines
Bingqin Li, London School of Economics
Sandip Mitra, Indian Statistical Institute, Kolkata
Dilip Mookherjee, Boston University
Roger Myerson, University of Chicago
Caroline Pöschl, London School of Economics
Stella A. Quimbo, University of the Philippines
Gonzalo Sánchez de Lozada, ex-President of Bolivia
Abhirup Sarkar, Indian Statistical Institute, Kolkata
Carlos Antonio R. Tan, Jr., University of the Philippines
Barry R. Weingast, Stanford University
Yongmei Zhang, Lanzhou University