Bolivia's 1994 decentralization led to changes in the geographic allocation of funds and to the development of innovative institutions of local governance. The changes in the sectoral (and geographic) allocations of public funds show a strong relationship with objective indicators of social...

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...

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...