january 29, 2009. what is decentralization? modes of decentralization administrative fiscal...
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Decentralization and Citizen Participation
January 29, 2009
What is decentralization?Modes of decentralization
AdministrativeFiscalPolitical
Forms of decentralizationDeconcentrationDevolutionDelegation
Two views of decentralizationTechnocraticCommunitarian
Hypotheses about conditions for decentralizationBardhan
People can ‘vote with their feet’Money reaches lower levelsNo need for targetingNo capacity issuesNo elite capture
When is decentralization appropriate?When preferences differ among citizensWhen there are ‘spillovers’ among jurisdictionsWhen coordination costs among agents (citizens)
are highWhen there is a supporting finance mechanism?
Other preconditions for effective decentralizationHeller
High degree of state capacityWell-developed civil societyPolitical party with social movement
characteristics that BENEFITS from decentralization
Mechanisms to resist local elite capture
What matters for decentralization(Bardhan)Heterogeneity of agentsSpillovers between jurisdictions Coordination costs among agents
Can they hold local officials accountable?Financing mechanismPotential for capture by local elites
Insights from Uganda CaseIncreasing local taxes has had pernicious
effects on the poor No effective mechanism to incorporate local
planning into district plansCompetition between elected officials and
civil servantsNew forms of patronage can be created by
decentralization
Olken – Study of Corruption in KDPRandomly assign villages to be subject to
auditRandomly assign two levels of participation
Invitations to attend village meetings widely distributed
Invitations + anonymous comment forms distributed
Measure CorruptionUsual method: perceptions, or ask about bribe
paying
ParticipationBeing in a participation group does not
significantly affect overall corruptionWith or without comment formsBut invitations reduced missing money on wages
more than on materialsVillages with invitations did more openly discuss
corruption at meetingsVillages with comments were more likely to take
action Missing money was lower were comments were
distributed through schools (rather than having politicians involved)
Corruption measureTake ‘core’ samples from roads and public
worksInterview villagers about effective wage ratesEstimate losses due to corruptoin
Findings:• Being in audit group reduces corruption by 8%• But number of awards to family members
increases
Analytic Frameworks for AssignmentPritchett and Woolcock
Discretionary v. transaction intensive nature of services
Eight alternatives for provisionGrindle KlitgaardWorld BankHypotheses about decentralization
Grindle – Assessing Governance InterventionsHow much conflict is likely?How much time is required to
institutionalize?How organizationally complex?Logistically complex?Expensive?How much behavioral change is requiredAnd, for what benefit?
Evaluating Potential Governance Interventions (Grindle)
Is intervention appropriate for state capacity?
What degree of conflict is likelyTime required for institutionalizationOrganizational complexityBudgetary requirementsAmount of behavioral change required
Pritchett & WoolcockEffective provision depends on structure of
incentivesResourcesInformationDecision-makingDelivery mechanismAccountability
KlitgaardC = M + D – AStrategies:
Obtain informationSet rewards and penaltiesChange accountability relationshipsInduce competitionLimit discretionDivide up large tasks