This paper reviews some of the more important rationales for decentralization to date, examines their theoretical underpinning, and the goes on to describe the elements of a nwe theory of decentralization which might take us far in our understanding of its effectiveness and implications. Lastly...

I examine decentralization through the lens of the local dynamics that it unleashes. The national effects of decentralization are simply the sum of its local-level effects. Hence to understand decentralization we must first understand how local government works. This paper proposes a theory of...

We examine the case of decentralization in Colombia in order to explore its effects on poverty indicators, and on public sector responsiveness to real local demands. We first summarize economic data on the effects of decentralization. Colombian municipalities increased investment significantly...

Most of the 60 developing countries that have established social funds are decentralizing their governments as well. But the question of how to tailor social funds - originally a highly centralized model - for a decentralizing context is scarcely addressed in the literature. This paper examines...

The effects of decentralization on a number of important policy goals is much debated but little agreed upon. This paper examines the cases of Bolivia and Colombia to explore decentralization's effects on government responsiveness and poverty-orientation. In Bolivia, decentralization made...

Does decentralization change policy outputs at the local level? If so, for better or worse? Do such changes reflect deep changes in the policy-making process itself, or are they related to technical parameters in the flow of funds? Why do some local governments respond well to decentralization...

With strong conceptual arguments in its favor, decentralization is a popular and growing policy trend across the world. And yet dozens of empirical studies have failed to find convincing evidence that past reforms have worked. This begs two questions: (1) Why does decentralization produce...

The new era of US empire commenced with decisive military victories in Afghanistan and Iraq. But the aftermath of war has proved surprisingly difficult and violent. Explanations of the US's failure to win the peace have largely overlooked the inherent difficulty of planting democracy in so...

The recent, much remarked upon decentralization in Bolivia produced four important changes in the nation's public finances: (1) a sharp fall in the geographic concentration of investment; (2) a sea-change in the uses of investment away from infrastructure towards the social sectors; (3) a...

This paper uses econometric models of public investment to investigate the institutional and political determinants of central vs. local government decision-making. I use a remarkable database from Bolivia's recent, radical decentralization program. I find that local government policy decisions...