Centralized versus Decentralized Governance of Public Service Delivery: A Comparative Institutional Analysis

This study compares the relative efficacy of centralized versus decentralized governance of national road services delivery, both theoretically and empirically. National roads are normally governed by the central government due to their functional importance as major arteries. Of the major functions of national road governance comprising planning, financing, construction and maintenance, the Ministry of Construction and Transportation (MOCT) is directly responsible for the first two. The latter two are provided either by decentralized or centralized governance arrangement. Centralized governance implies that the field offices of the MOCT are responsible for these two functions, whereas under decentralized governance, the MOCT delegates the functions to local government. This study develops a theoretical framework for the governance of national road services delivery based on incomplete contract theory and extends it further by incorporating the unique features of public sectors. Empirically, a case study is implemented to substantiate the implications drawn from theoretical discussions with reference to national road service delivery in South Korea. The outcome of this study, therefore, would be valuable to the Korean government, which is considering reform of national road service delivery. * Professor in Department of Public Administration Soongsil University, Seoul, South Korea