The book offers a comprehensive empirical analysis of the determinants of changes in the distribution of expenditure and revenue-raising powers among fiscal tiers in OECD countries. Using a new indicator of fiscal decentralisation which accounts for subnational decision-making autonomy, common decentralisation trends are investigated. Then, empirical evidence from panel analyses is provided for the role of costs, preferences and institutions in explaining fiscal federal structures, and for the impact of economic and political integration on the degree of government decentralisation, particularly among EU countries. Finally, the historical experience of Germany is used to explore long-term developments in the public sector.

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.

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.

Over the past three decades the developing world has seen increasing devolution of political and economic power to local governments. Decentralization is considered an important element of participatory democracy and, along with privatization and deregulation, represents a substantial reduction in the authority of national governments over economic policy. The contributors to Decentralization and Local Governance in Developing Countries examine this institutional transformation from comparative and interdisciplinary perspectives, offering detailed case studies of decentralization in eight countries: Bolivia, Brazil, China, India, Indonesia, Pakistan, South Africa, and Uganda. Some of these countries witnessed an unprecedented "big bang" shift toward comprehensive political and economic decentralization: Bolivia in 1995 and Indonesia after the fall of Suharto in 1998. Brazil and India decentralized in an uneven and more gradual manner. In some other countries (such as Pakistan), devolution represented an instrument for consolidation of power of a nondemocratic national government. In China, local governments were granted much economic but little political power. South Africa made the transition from the undemocratic decentralization of apartheid to decentralization under a democratic constitution. The studies provide a comparative perspective on the political and economic context within which decentralization took place, and how this shaped its design and possible impact. Contributors Omar Azfar, Gianpaolo Baiocchi, Pranab Bardhan, Shubham Chaudhuri, Ali Cheema, Jean-Paul Faguet, Bert Hofman, Kai Kaiser, Philip E. Keefer, Asim Ijaz Khwaja, Justin Yifu Lin, Mingxing Liu, Jeffrey Livingston, Patrick Meagher, Dilip Mookherjee, Ambar Narayan, Adnan Qadir, Ran Tao, Tara Vishwanath, Martin Wittenberg

The book offers a comprehensive empirical analysis of the determinants of changes in the distribution of expenditure and revenue-raising powers among fiscal tiers in OECD countries. Using a new indicator of fiscal decentralisation which accounts for subnational decision-making autonomy, common decentralisation trends are investigated. Then, empirical evidence from panel analyses is provided for the role of costs, preferences and institutions in explaining fiscal federal structures, and for the impact of economic and political integration on the degree of government decentralisation, particularly among EU countries. Finally, the historical experience of Germany is used to explore long-term developments in the public sector.

* Melds theoretical models with practical experience * Written by world-renowned experts on public administration * Guides future policy debates on helping to build effective and efficient states How does a government seeking to participate in and benefit from an integrated and interdependent world become more professional, technologically proficient, deregulated, and accountable? Reinventing Government for the Twenty-First Century tells you how. The authors identify the forces of globalization and the structural changes needed to increase state capacity and enhance global-scale participation. Professionals directly involved in assisting governments show public leaders and administrators how to improve the quality of their performance in government.

First published in 1985, Decentralization provides an analytical framework for the comparative study of decentralization in contemporary systems of government. It discusses the structures and processes of all forms of decentralized government and administration, drawing on a wide range of states, developed and developing, capitalist and socialist. The book provides a comparative and theoretical treatment of a subject that for too long has been dealt with in a fragmented and ethnocentric fashion. Decentralization is examined from a theoretical perspective and the political demand for it is analysed. Four key universal themes are then explored: areas, intergovernmental relations, finance and institutions. Decentralization to small-scale communities is discussed and the special claims made for decentralization in developing countries are assessed. Examples are drawn from a wide range of countries throughout the world. The book is intended for courses in public administration, comparative government, urban studies and public policy. It will help both the student and the non-specialist understand an important and topical aspect of government everywhere.