Publication: Decentralization and Governance : Does Decentralization Improve Public Service Delivery?
Date
2001-06
ISSN
Published
2001-06
Author(s)
Kahkonen, Satu
Lanyi, Anthony
Abstract
Decentralization holds a lot of promise,
but whether it improves public service delivery depends on
the institutional arrangements governing its implementation.
Several conditions must be met before the full benefits of
decentralization can be reaped. First, for decentralization
to increase allocative and productive efficiency, local
governments need to have the authority to respond to local
demand as well as adequate mechanisms for accountability.
Because granting authority without accountability can lead
to corruption and lower productive efficiency,
decentralization needs to be accompanied by reforms that
increase the transparency and accountability of local
government. Second, functions need to be devolved to a low
enough level of government for allocative efficiency to
increase as a result of decentralization. Low-level
governments are likely to be aware of local preferences and,
if able to do so, are likely to adjust service delivery
accordingly. Third, citizens should have channels to
communicate their preferences and get their voices heard in
local governments. But the existence of such channels is not
enough. To effectively influence public policies and oversee
local governments, citizens need to have information about
government policies and activities. The media play a crucial
role in this area.
Citation
“Kahkonen, Satu; Lanyi, Anthony. 2001. Decentralization and Governance : Does Decentralization Improve Public Service Delivery?. PREM Notes; No. 55. © World Bank, Washington, DC. http://openknowledge.worldbank.org/handle/10986/11382 License: CC BY 3.0 IGO.”