Does decentralization increase government responsiveness to local needs? Evidence from Bolivia
نویسنده
چکیده
This paper examines whether decentralization increases the responsiveness of public investment to local needs using a unique database from Bolivia. Empirical tests show that investment patterns in human capital and social services changed significantly after decentralization. These changes are strongly and positively related to objective indicators of need. Nationally, these changes were driven by the smallest, poorest municipalities investing devolved funds in their highest-priority projects. The findings contradict common claims that local government is too corrupt, institutionally weak, or prone to interest-group capture to improve upon central government’s allocation of public resources. D 2002 Published by Elsevier B.V. JEL classification: D72; D73; H41; H42; H72; O18
منابع مشابه
Does Decentralization Increase Responsiveness to Local Needs? Evidence from Bolivia
Bolivia’s recent decentralization involved the creation of hundreds of new municipalities, devolution of substantial resources from central agencies to local governments, and the development of innovative institutions of local governance. Detailed study of investment sector-by-sector shows that objective indicators of need are the most important determinants of the changes in investment pattern...
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