Probing system limits: Decentralisation and local political accountability in Vietnam

Decentralization occupies an important space in debates over public-sector reform in doi moi Vietnam. This paper assesses the changing distribution of roles, responsibilities and resources across levels of government over the past decade. Vietnam is incrementally transfering greater administrative and fiscal responsibilities to the provincial level. In addition, the Communist Party is attempting to prevent local corruption through a much touted “grassroots democratization” initiative. Yet such moves towards decentralization, however cautious, are problematic in terms of their bureacratic politics and potential impacts on poverty. Incentives for bureacratic actors and local leaders to transfer meaningful control downwards are weak or non-existent within the current governance structure, which centralizes political power and emphasizes hierarchical, sectoral controls over decision-making and resources. And decentralization trends are exacerbating the weak administrative and fiscal capacities of poorer provinces, threatening to reinforce rather than reduce Vietnam’s widening regional and rural-urban disparities. A more proactice role for the center in redistributing resources, providing technical support and establishing a facilitative policy framework will be crucial if decentralization is to contribute towards improved socioeconomic outcomes in Vietnam’s poorest regions.