The Political Economy Of Decentralization Reforms Implications For Aid Effectiveness

This volume presents a framework designed to help international development partners consider the relevance of political economy issues for their programmatic support to decentralization and local government reform. The intention is neither to advocate decentralization in general or in any particular form, nor to presume or privilege any particular decentralization objective. Instead, the purpose is to document the potential value of better understanding how (primarily national and intergovernmental) political and institutional dynamics do or could affect the scope for realizing decentralization reforms aligned with commonly advocated service delivery, governance, and poverty reduction goals. The underlying premise is that systematic analysis of these issues can productively complement the dominantly technical diagnostic work typically carried out by development partners. Specifically, development partners can benefit from better understanding the practical significance of motives that drive politicians and bureaucrats to support or oppose reform at various stages of the decentralization process, from making an initial reform decision to detailed design and implementation. In addition, the authors address how these incentives can weaken, strengthen, or shift in response to changes in political and economic conditions that arise after reform begins. A general approach to conducting political economy of decentralization analysis is outlined, recognizing the need to tailor such analysis to the particular country context. This volume is based on literature reviews and knowledge derived from selected country experiences.

This volume presents a framework designed to help international development partners consider the relevance of political economy issues for their programmatic support to decentralization and local government reform. The intention is neither to advocate decentralization in general or in any particular form, nor to presume or privilege any particular decentralization objective. Instead, the purpose is to document the potential value of better understanding how (primarily national and intergovernmental) political and institutional dynamics do or could affect the scope for realizing decentralization reforms aligned with commonly advocated service delivery, governance, and poverty reduction goals. The underlying premise is that systematic analysis of these issues can productively complement the dominantly technical diagnostic work typically carried out by development partners. Specifically, development partners can benefit from better understanding the practical significance of motives that drive politicians and bureaucrats to support or oppose reform at various stages of the decentralization process, from making an initial reform decision to detailed design and implementation. In addition, the authors address how these incentives can weaken, strengthen, or shift in response to changes in political and economic conditions that arise after reform begins. A general approach to conducting political economy of decentralization analysis is outlined, recognizing the need to tailor such analysis to the particular country context. This volume is based on literature reviews and knowledge derived from selected country experiences.

Scholars of economics and business, most from Britain and especially the University of Manchester, consider the political economy of public management reform. They report research findings on privatization and decentralization in both industrialized and aid-dependent countries, concentrating on the meso-level of institutional response. Combining theory, case studies, and institutional analysis, they look at public/private partnerships, public finance, and aid allocation. Academics and researchers in development studies and economics, political economy, and international public management and policy makers may find this volume of interest.

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.

Decentralization has become a fashionable policy prescription among reformers in Latin America. But how does it work in practice? Are the claims that it promotes efficiency, participation, and fiscal responsibility justified? Does the process improve the delivery of social services at thelocal level and encourage the participation of local communities? What conditions allow a positive response to the challenges of decentralization?This book seeks to explore these questions by examining the experience of seven medium sized provincial towns in Colombia and Chile. The overall national context is analyzed and the differences between the two countries emphasized. Colombia embarked on a process of radical decentralization, largelybecause of perceived failures of the state at the central level, while in Chile the process of change was much more cautious, since a relatively efficient central state wished to maintain tight control over reform. The effect on the development and politics of the seven cities is also described, andthe reasons for the very different outcomes assessed. Particular attention is paid to the role of the mayor and the ability to construct a local coalition for reform. Three thematic chapters further explore the impact of decentralization on the local economy and the role of the private sector infostering development; the way in which educational reform has been advanced by local authority and community involvement; and the manner in which the new institutional structures affect the development of policies for local poverty alleviation.The authors draw on extensive fieldwork involving numerous interviews with actors at all levels and from all sectors. The result is a unique test, at the local level in Latin America, of the outcome of reforms to the institutional structure of government.

Since the early 2000s, decentralization has been espoused as a major policy goal of successive Zambian governments. With the passing of the 2019 Local Government Act, a greater understanding is needed of how decentralization has progressed thus far in Zambia and how political economy dynamics have constrained the process. As such, a survey was conducted with 153 bureaucrats across 16 councils in four Zambian provinces, complemented by interviews with elected ward councilors. Three key findings emerge. First, the organizational setting in which councils operate undermines the continuity of service provision. In particular, transfers of staff by the Local Government Service Commission (LGSC), partially driven by the growth in the number of councils in recent years, increases pressure on the wage bill of local authorities, creates uncertainty for civil servants, and undermines institutional memory. Second, the unwillingness to cede genuine autonomy to local councils by the Ministry of Local Government (MLG) repeatedly emerged. A perception of low levels of consultation with council bureaucrats and elected councilors, especially when statutory instruments are issued, reinforce that accountability remains upwards to the MLG rather than downwards to citizens. Third, within the councils, there is a mismatch in incentives between the bureaucrats and politicians that can undermine policy implementation; while the former respect authority and attention to procedures, the latter are focused on constituents’ priorities and may bypass formal procedures to deliver to their voters. Based on interviews with market committees and solid waste companies, these dynamics have negative externalities on citizen perceptions and service provision in urban areas. As one of the few analyses conducted with local bureaucrats to assess their experiences with decentralization, the study aims to advance both policy and scholarship about the political economy dynamics surrounding efforts to strengthen subnational capabilities in developing countries.

A new lens on development is changing the world of international aid. The overdue recognition that development in all sectors is an inherently political process is driving aid providers to try to learn how to think and act politically. Major donors are pursuing explicitly political goals alongside their traditional socioeconomic aims and introducing more politically informed methods throughout their work. Yet these changes face an array of external and internal obstacles, from heightened sensitivity on the part of many aid-receiving governments about foreign political interventionism to inflexible aid delivery mechanisms and entrenched technocratic preferences within many aid organizations. This pathbreaking book assesses the progress and pitfalls of the attempted politics revolution in development aid and charts a constructive way forward. Contents: Introduction 1. The New Politics Agenda The Original Framework: 1960s-1980s 2. Apolitical Roots Breaking the Political Taboo: 1990s-2000s 3. The Door Opens to Politics 4. Advancing Political Goals 5. Toward Politically Informed Methods The Way Forward 6. Politically Smart Development Aid 7. The Unresolved Debate on Political Goals 8. The Integration Frontier Conclusion 9. The Long Road to Politics

This comprehensive volume provides uniquely diverse insights into various aspects of decentralization and development from both developed and developing countries, with special reference to Sri Lanka. For a quarter century, Sri Lanka was battered by its prolonged civil war, which ended in 2009, but has now achieved relative peace and stability. Having developed rapidly, Sri Lanka offers a classic example for developing countries. There is, however, a strong need, particularly in the context of postwar conflict, to formulate policies for reconciliation, peace building, and development at all levels—local, provincial, and national. Decentralization itself is not a new subject; however, how to devolve power to local administrative levels within a unitary system and how to link the devolved power to make local administrative systems more conducive to development and provide better services for citizens are challenging tasks in many countries. Taking into account the developmental, governance, and conciliatory needs and the sensitivity of central–local relations, this volume critically examines the local government systems in Sri Lanka. It also proposes a viable, effective and autonomous local-level administrative unit based, which draws on experiences from Japan and other countries, and identifies the role and functions of such a unit. The book presents commissioned papers from a three-year research project undertaken by internationally respected experts with financial support by the Japan Society for the Promotion of Science (JSPS) under a Grant-in-Aid for Scientific Research.