Local governance and decentralization

Decentralization can improve service provision through increased government responsiveness

Much research has analyzed the effect of decentralization, but empirical evidence remains largely inconclusive about its overall effects. New research used a novel approach to understanding the effects of decentralization: it evaluated a comprehensive centralization reform that centralized administrative, fiscal, and political powers in Taiwan. The research found that centralization reduced public goods provision, particularly those that involve more local government activity (e.g., road maintenance). Centralization negatively affected service delivery due to loss of government proximity to citizens – loss of proximity lengthens the administrative process and thereby reduces government responsiveness. This research suggests that decentralization can improve service delivery by bringing government closer to citizens.

Local elected officials may require training about their roles and responsibilities

With many countries decentralizing power to municipalities, are local officials sufficiently knowledgeable about how to execute their expanded portfolio of responsibilities? New research in India showed that such knowledge is vital for elected officials to succeed in the technical world of local urban governance, but that local elected officials have distressingly low levels of knowledge about how to govern. They lack opportunities to gain this knowledge for several reasons, such as weak party organizations that cannot train elected officials and high turnover that prevents on-the-job learning. This research suggests that decentralization should be paired with efforts to help local politicians understand their roles and responsibilities, alongside existing efforts that help citizens hold local governments accountable.

Related Resources

• EL Talk Series September 24th at 9am ET: Addressing Challenges in Financing Critical Subnational Infrastructure

Do you have a study we should share for a future Facty Friday? Send an email to drg.el@usaid.gov!