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Decentralization and local government performance improving public service provision in Bolivia

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  • Jean-Paul Faguet

Abstract

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 and most importantly, we review a large amount of nwe data on the effects of decentralization in Bolivia. We find strong evidence that devolving resources and power to local government has (i) increased the allocative efficiency of the bolivian public sector, (ii) led to greater stability in cross-sectoral public investment patterns, (iii) led to more responsive, needs-oriented government locally than was ever achieved by the center, and (iv) very likely increased the cost-effectiveness of the public sector.

Suggested Citation

  • Jean-Paul Faguet, 2000. "Decentralization and local government performance improving public service provision in Bolivia," Revista de Economía del Rosario, Universidad del Rosario, February.
    • Handle: RePEc:col:000151:002253
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    File URL: http://revistas.urosario.edu.co/index.php/economia/article/view/991/890
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    Citations

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    Cited by:

    1. Qaiser M. Khan & Jean-Paul Faguet & Christopher Gaukler & Wendmsyamregne Mekasha, 2014. "Improving Basic Services for the Bottom Forty Percent : Lessons from Ethiopia," World Bank Publications - Books, The World Bank Group, number 20001.
    2. Grootaert, Christiaan & Narayan, Deepa, 2004. "Local Institutions, Poverty and Household Welfare in Bolivia," World Development, Elsevier, vol. 32(7), pages 1179-1198, July.
    3. World Bank, 2014. "Improving Basic Services for the Bottom Forty Percent : Results of the Poverty and Social Impact Assessment of Decentralized Basic Service Delivery in Ethiopia," World Bank Publications - Reports 17838, The World Bank Group.

    More about this item

    Keywords

    Decentralization; efficiency; accountability;
    All these keywords.

    JEL classification:

    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development

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