What is decentralization, what is its underpinning rationale, and why might it matter for least-developed countries? This chapter has two goals: (i) to distill the enormous academic and policy literature on international experiences of decentralization into clear empirical conclusions; and (ii)...

I examine decentralization through the lens of the local dynamics it unleashed in the much-noted case of Bolivia and the less-noted case of Bangladesh. I argue that the national effects of decentralization are largely the sum of its local-level effects. Hence to understand decentralization we...

If the effects of institutional reforms are long-term and unpredictable, why do leaders undertake them? We analyze reforms where the incentives of agents pursuing a change, and the effects of that change, are highly asymmetric in time and policy dimensions. We examine detailed evidence from...

Well-designed decentralization can deepen democracy and strengthen the state in five key ways. Decentralizing below the level of social cleavages should undermine secessionism by peeling away moderates from radical leaders. The "fragmentation of authority" critique is mistaken; decentralization...

For 50 years Bolivia's political party system was a surprisingly robust component of an otherwise fragile democracy. How did a gas pipeline dispute spark a revolution that overturned the political system, destroyed existing political parties, and re-cast the relationship between state and...

We explore the effects of decentralization on education and health in Ethiopia using an original database covering all of the country’s regions and woredas (local governments). Ethiopia is a remarkable case in which war, famine and chaos in the 1970s-80s were followed by federalization,...