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.

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.

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 book identifies and examines the political dimensions of decentralization. Decentralization programs vary from country to country, but there are common threads and fundamental questions in all situations. The book covers the following themes and topics: (1) a case study of school decentralization in Colombia over a period of more than two decades; (2) why decentralization is political; (3) why countries decentralize; (4) what decentralization accomplishes; (5) the importance of developing consensus; and (6) how to begin building consensus. (Contains 32 references.) (EH)

Exploring the capacity and impact of decentralization within European health care systems, this book examines both the theoretical underpinnings as well as practical experience with decentralization.

Many developing countries have a history of highly centralized governments. Since the late 1980s, a large number of these governments have introduced decentralization to increase democracy and improve services, especially in small communities far from capital cities. In Going Local, an unprecedented study of the effects of decentralization on thirty Mexican municipalities, Merilee Grindle describes how local governments respond when they are assigned new responsibilities and resources under decentralization policies. She explains why decentralization leads to better local governments in some cases--and why it fails to in others. Combining quantitative and qualitative methods, Grindle examines data based on a random sample of Mexican municipalities--and ventures into town halls to follow public officials as they seek to manage a variety of tasks amid conflicting pressures and new expectations. Decentralization, she discovers, is a double-edged sword. While it allows public leaders to make significant reforms quickly, institutional weaknesses undermine the durability of change, and legacies of the past continue to affect how public problems are addressed. Citizens participate, but they are more successful at extracting resources from government than in holding local officials and agencies accountable for their actions. The benefits of decentralization regularly predicted by economists, political scientists, and management specialists are not inevitable, she argues. Rather, they are strongly influenced by the quality of local leadership and politics.

The authors of this volume sift through the accumulating evidence to assess how well decentralization has fared. Focusing on consequences rather than causes, their goal is to inform future interventions in support of decentralized governance by showcasing some of the important trade-offs that it has generated so far.

Reviews recent lessons about decentralized governance and implications for future development programs and policies.