Administrative Decentralization: A New Framework for Improved Governance, Accountability, and Performance

Decision-makers and aid agency professionals in a number of transitional and developing countries are increasingly turning to “administrative decentralization” as a strategy for addressing a number of critical governmental needs. Foremost among these are improved governance, increased transparency and accountability, and more effective and efficient production and delivery of public goods and services. Unfortunately, currently available analytical frameworks and guidelines are not particularly helpful in assisting them to design strategies and reforms aimed at promoting these and other needs. This paper summarizes a new Framework developed by the authors that can assist governments and aid agencies in transitional and developing countries to design and implement administrative decentralization strategies and reforms. Labeled the “Administrative Design Framework,” it emerges from a lengthy exercise carried out by the authors for the United Nations in 1995-96. Annex I of the paper seeks to briefly review the problems and limitations of current frameworks and guidelines. In this regard, this paper should be read in conjunction with the authors’ earlier HIID Development Discussion on methodological problems in the decentralization literature, which is cited in the Annex. Importantly, the Annex also describes the currently dominant “Type-Function Framework,” particularly because its definitional clarity on the forms and types of decentralization are drawn upon by the authors in formulating their new Framework. A second Annex summarizes the issues involved in redefining the public sector. This Annex reviews current debates about downsizing and reengineering the public sector. Such a review is central, for administrative decentralization is essentially a strategy for rationalizing the distribution of public sector tasks held by the central government in most transitional and developing countries. John M. Cohen is an Institute Fellow at HIID. Stephen B. Peterson is a Development Associate at HIID and currently Chief-of-Party for the HIID executed USAID “Decentralization Support Project” in Ethiopia.