Journal Article

Blending Top-Down Federalism with Bottom-Up Engagement to Reduce Inequality in Ethiopia

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collection.link.125
https://openknowledge.worldbank.org/handle/10986/4401
collection.name.125
C. Journal articles published externally
dc.contributor.author
Khan, Qaiser
dc.contributor.author
Faguet, Jean-Paul
dc.contributor.author
Ambel, Alemayehu
dc.date.accessioned
2018-01-10T22:26:58Z
dc.date.available
2018-01-10T22:26:58Z
dc.date.issued
2017-08
dc.date.lastModified
2021-05-25T10:54:42Z
dc.description.abstract
Donors increasingly fund interventions to counteract inequality in developing countries, where they fear it can foment instability and undermine nation-building efforts. To succeed, aid relies on the principle of upward accountability to donors. But federalism shifts the accountability of subnational officials downward to regional and local voters. What happens when aid agencies fund anti-inequality programs in federal countries? Does federalism undermine aid? Does aid undermine federalism? Or can the political and fiscal relations that define a federal system resolve the contradiction internally? We explore this paradox via the Promotion of Basic Services program in Ethiopia, the largest donor-financed investment program in the world. Using an original panel database comprising the universe of Ethiopian woredas (districts), the study finds that horizontal (geographic) inequality decreased substantially. Donor-financed block grants to woredas increased the availability of primary education and health care services in the bottom 20% of woredas. Weaker evidence from household surveys suggests that vertical inequality across wealth groups (within woredas) also declined, implying that individuals from the poorest households benefit disproportionately from increasing access to, and utilization of, such services. The evidence suggests that by combining strong upward accountability over public investment with enhanced citizen engagement on local issues, Ethiopia’s federal system resolves the instrumental dissonance posed by aid-funded programs to combat inequality in a federation.
en
dc.identifier.citation
World Development
dc.identifier.issn
0305-750X
dc.identifier.uri
http://hdl.handle.net/10986/29139
dc.publisher
Elsevier
dc.rights
CC BY-NC-ND 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by-nc-nd/3.0/igo
dc.subject
INEQUALITY
dc.subject
LOCAL GOVERNMENT
dc.subject
WOREDAS
dc.subject
PARTICIPATION
dc.subject
DECENTRALIZATION
dc.title
Blending Top-Down Federalism with Bottom-Up Engagement to Reduce Inequality in Ethiopia
en
dc.type
Journal Article
en
okr.associatedcontent
http://www.sciencedirect.com/science/article/pii/S0305750X17300797 Journal website (version of record)
en
okr.associatedcontent
https://openknowledge.worldbank.org/handle/10986/23475 Working paper version (pre-print)
en
okr.date.disclosure
2017-08
okr.doctype
Publications & Research :: Journal Article
okr.doctype
Publications & Research
okr.externalcontent
External Content
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1016/j.worlddev.2017.03.017
okr.identifier.doi
10.1596/29139
okr.identifier.report
123188
okr.journal.nbpages
326-42
okr.language.supported
en
okr.peerreview
Academic Peer Review
okr.region.administrative
Africa
okr.region.country
Ethiopia
okr.topic
Governance :: Local Government
okr.topic
Governance :: National Governance
okr.topic
Governance :: Political Systems and Analysis
okr.topic
Poverty Reduction :: Inequality
okr.topic
Social Development :: Participations and Civic Engagement
okr.unit
Social Protection and Labor Global Practice
okr.volume
96

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