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Decentralization and the provision of public services : framework and implementation

Author

Listed:
  • Kim, Aehyung
Abstract
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 includethe risk of an increased level of corruption, coordination problems stemming from multiple layers of government, low capacity of subnational government, and unproductive inter-jurisdictional competition. Decentralization itself does not render increased government effectiveness in public service provision. Instead, the effectiveness of government largely depends on the quality of human capital and institutions.

Suggested Citation

  • Kim, Aehyung, 2008. "Decentralization and the provision of public services : framework and implementation," Policy Research Working Paper Series 4503, The World Bank.
    • Handle: RePEc:wbk:wbrwps:4503
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    References listed on IDEAS

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    Cited by:

    1. Pankaj C. Patel, 2022. "Recentralization and self‐employment: A quasi‐natural experiment in Switzerland," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(5), pages 1379-1402, July.
    2. Vassilis Tselios & Andres Rodriguez-Pose, 2022. "Can decentralisation help address poverty and social exclusion in Europe?," Papers in Evolutionary Economic Geography (PEEG) 2212, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jul 2022.
    3. Serene Ho & Pranab R. Choudhury & Nivedita Haran & Rebecca Leshinsky, 2021. "Decentralization as a Strategy to Scale Fit-for-Purpose Land Administration: An Indian Perspective on Institutional Challenges," Land, MDPI, vol. 10(2), pages 1-18, February.
    4. Duncan M. Wagana & Mike A. Iravo & Joyce D. Nzulwa & John M. Kihoro, 2016. "Effect of Financial and Political Decentralization on Service Delivery in County Governments in Kenya," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 6(6), pages 304-320, June.

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