IDEAS home Printed from https://ideas.repec.org/a/eee/deveco/v93y2010i2p264-274.html
   My bibliography  Save this article

Decentralizing development: Allocating public goods via competition

Author

Listed:
  • Chavis, Larry

Abstract

Decentralizing the allocation of public goods by giving funds directly to communities takes advantage of local information concerning needs, but leaves funds open to misuse or capture by local elites. A large scale development project in Indonesia attempts to overcome this downside of decentralized allocation by having communities compete locally for block grants. Competition weeds out less efficient projects. Increasing the number of villages bidding by 10% leads to a 1.8% decline in road construction costs. Increased community participation in project planning also leads to better outcomes.

Suggested Citation

  • Chavis, Larry, 2010. "Decentralizing development: Allocating public goods via competition," Journal of Development Economics, Elsevier, vol. 93(2), pages 264-274, November.
    • Handle: RePEc:eee:deveco:v:93:y:2010:i:2:p:264-274
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0304-3878(09)00103-5
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Bardhan, Pranab & Mookherjee, Dilip, 2006. "Pro-poor targeting and accountability of local governments in West Bengal," Journal of Development Economics, Elsevier, vol. 79(2), pages 303-327, April.
    2. Ghazala Mansuri, 2004. "Community-Based and -Driven Development: A Critical Review," The World Bank Research Observer, World Bank, vol. 19(1), pages 1-39.
    3. Pranab Bardhan & Dilip Mookherjee, 2006. "Decentralisation and Accountability in Infrastructure Delivery in Developing Countries," Economic Journal, Royal Economic Society, vol. 116(508), pages 101-127, January.
    4. Andrei Shleifer, 1985. "A Theory of Yardstick Competition," RAND Journal of Economics, The RAND Corporation, vol. 16(3), pages 319-327, Autumn.
    5. Galasso, Emanuela & Ravallion, Martin, 2005. "Decentralized targeting of an antipoverty program," Journal of Public Economics, Elsevier, vol. 89(4), pages 705-727, April.
    6. Benjamin A. Olken, 2007. "Monitoring Corruption: Evidence from a Field Experiment in Indonesia," Journal of Political Economy, University of Chicago Press, vol. 115(2), pages 200-249.
    7. Alderman, Harold, 2002. "Do local officials know something we don't? Decentralization of targeted transfers in Albania," Journal of Public Economics, Elsevier, vol. 83(3), pages 375-404, March.
    8. Olken, Benjamin A., 2006. "Corruption and the costs of redistribution: Micro evidence from Indonesia," Journal of Public Economics, Elsevier, vol. 90(4-5), pages 853-870, May.
    9. Fitria Fitrani & Bert Hofman & Kai Kaiser, 2005. "Unity in diversity? The creation of new local governments in a decentralising Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 41(1), pages 57-79.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cavalcanti, Carina & Leibbrandt, Andreas, 2015. "Dry promotions and community participation: Evidence from a natural field experiment in Brazilian fishing villages," Journal of Economic Behavior & Organization, Elsevier, vol. 119(C), pages 457-465.
    2. Emilie Caldeira & Martial Foucault & Gregoire Rota-Graziosi, 2015. "Decentralization in Africa and the nature of local governments’ competition: evidence from Benin," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 22(6), pages 1048-1076, December.
    3. Iliopoulos, Constantine & Valentinov, Vladislav & Kvartiuk, Vasyl & Bartkowski, Bartosz, 2013. "Government-third sector relations in European rural development: A critical perspective," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 4(1), pages 65-80.
    4. Pan, Lei & Christiaensen, Luc, 2012. "Who is Vouching for the Input Voucher? Decentralized Targeting and Elite Capture in Tanzania," World Development, Elsevier, vol. 40(8), pages 1619-1633.
    5. Fox, Jonathan, 2020. "Contested terrain: International development projects and countervailing power for the excluded," World Development, Elsevier, vol. 133(C).
    6. Caesar Marga Putri & Josep Maria Argilés-Bosch & Diego Ravenda, 2023. "Thirty Years of Village Corruption Research: Accounting and Smart Villages for Village Sustainability as Future Research Direction," Sustainability, MDPI, vol. 15(12), pages 1-19, June.
    7. Buntaine, Mark T. & Daniels, Brigham & Devlin, Colleen, 2018. "Can information outreach increase participation in community-driven development? A field experiment near Bwindi National Park, Uganda," World Development, Elsevier, vol. 106(C), pages 407-421.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kis-Katos, Krisztina & Sjahrir, Bambang Suharnoko, 2017. "The impact of fiscal and political decentralization on local public investment in Indonesia," Journal of Comparative Economics, Elsevier, vol. 45(2), pages 344-365.
    2. Chikako Yamauchi, 2010. "Community-Based Targeting and Initial Local Conditions: Evidence from Indonesia's IDT Program," Economic Development and Cultural Change, University of Chicago Press, vol. 59(1), pages 95-147, October.
    3. Erwin Bulte & Andreas Kontoleon & John List & Ty Turley & Maarten Voors, 2024. "Chief for a Day: Elite Capture and Management Performance in a Field Experiment in Sierra Leone," Natural Field Experiments 00789, The Field Experiments Website.
    4. Sjahrir, Bambang Suharnoko & Kis-Katos, Krisztina & Schulze, Günther G., 2014. "Administrative Overspending in Indonesian Districts: The Role of Local Politics," World Development, Elsevier, vol. 59(C), pages 166-183.
    5. Maarten Voors & Ty Turley & Erwin Bulte & Andreas Kontoleon & John A. List, 2018. "Chief for a Day: Elite Capture and Management Performance in a Field Experiment in Sierra Leone," Management Science, INFORMS, vol. 64(12), pages 5855-5876, December.
    6. Grillos, Tara, 2017. "Participatory Budgeting and the Poor: Tracing Bias in a Multi-Staged Process in Solo, Indonesia," World Development, Elsevier, vol. 96(C), pages 343-358.
    7. Haseeb, Muhammad & Vyborny, Kate, 2022. "Data, discretion and institutional capacity: Evidence from cash transfers in Pakistan," Journal of Public Economics, Elsevier, vol. 206(C).
    8. Carol Newman & Mengyang Zhang, 2015. "Connections and the allocation of public benefits," WIDER Working Paper Series 031, World Institute for Development Economic Research (UNU-WIDER).
    9. Carlitz, Ruth D., 2017. "Money Flows, Water Trickles: Understanding Patterns of Decentralized Water Provision in Tanzania," World Development, Elsevier, vol. 93(C), pages 16-30.
    10. Baird, Sarah & McIntosh, Craig & Özler, Berk, 2013. "The regressive demands of demand-driven development," Journal of Public Economics, Elsevier, vol. 106(C), pages 27-41.
    11. Carol Newman & Mengyang Zhang, 2015. "Connections and the Allocation of Public Benefits," WIDER Working Paper Series wp-2015-031, World Institute for Development Economic Research (UNU-WIDER).
    12. Pan, Lei & Christiaensen, Luc, 2012. "Who is Vouching for the Input Voucher? Decentralized Targeting and Elite Capture in Tanzania," World Development, Elsevier, vol. 40(8), pages 1619-1633.
    13. Deininger, Klaus W. & Liu, Yanyan, 2008. "Economic and Social Impacts of Self-Help Groups in India," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6482, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    14. Stoeffler, Quentin & Mills, Bradford & del Ninno, Carlo, 2016. "Reaching the Poor: Cash Transfer Program Targeting in Cameroon," World Development, Elsevier, vol. 83(C), pages 244-263.
    15. Schleicher, Michael & Souares, Aurélia & Pacere, Athanase Narangoro & Sauerborn, Rainer & Klonner, Stefan, 2016. "Decentralized versus Statistical Targeting of Anti-Poverty Programs: Evidence from Burkina Faso," Working Papers 0623, University of Heidelberg, Department of Economics.
    16. Alain de Janvry & Frederico Finan & Elisabeth Sadoulet, 2012. "Local Electoral Incentives and Decentralized Program Performance," The Review of Economics and Statistics, MIT Press, vol. 94(3), pages 672-685, August.
    17. González-Flores, Mario & Heracleous, Maria & Winters, Paul, 2012. "Leaving the Safety Net: An Analysis of Dropouts in an Urban Conditional Cash Transfer Program," World Development, Elsevier, vol. 40(12), pages 2505-2521.
    18. Park, Albert & Wang, Sangui, 2010. "Community-based development and poverty alleviation: An evaluation of China's poor village investment program," Journal of Public Economics, Elsevier, vol. 94(9-10), pages 790-799, October.
    19. Skoufias, Emmanuel & Narayan, Ambar & Dasgupta, Basab & Kaiser, Kai, 2014. "Electoral accountability and local government spending in Indonesia," Policy Research Working Paper Series 6782, The World Bank.
    20. Deininger, Klaus W. & Galab, Shaik & Olsen, Tore, 2005. "Empowering Poor Rural Women In India: Empirical Evidence From Andhra Pradesh," 2005 Annual meeting, July 24-27, Providence, RI 19123, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:deveco:v:93:y:2010:i:2:p:264-274. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/devec .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.