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Decentralised development

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  • Pranab Bardhan

    (University of California)

Abstract

In this paper we start with an evaluation of the various advantages and disadvantages of decentralisation (in the sense of devolution of power to local agencies and communities), and also of the conditions that predispose towards success or failure in beneficial decentralised development. In particular we have focussed on the argument that in governance structures control rights should be assigned to people who have the requisite information and incentives, and at the same time will bear responsibility for the (political and economic) consequences of their decisions. We try to provide a balanced assessment of the efficiency and equity effects of such assignments of control rights and how they operate differently under different initial conditions.

Suggested Citation

  • Pranab Bardhan, 2019. "Decentralised development," Indian Economic Review, Springer, vol. 54(1), pages 235-253, December.
    • Handle: RePEc:spr:inecre:v:54:y:2019:i:1:d:10.1007_s41775-019-00076-z
    DOI: 10.1007/s41775-019-00076-z
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    1. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64(5), pages 416-416.
    2. Jeff Dayton-Johnson & Pranab Bardhan, 2002. "Inequality And Conservation On The Local Commons: A Theoretical Exercise," Economic Journal, Royal Economic Society, vol. 112(481), pages 577-602, July.
    3. Bardhan, Pranab, 1993. "Analytics of the institutions of informal cooperation in rural development," World Development, Elsevier, vol. 21(4), pages 633-639, April.
    4. McCleary, William, 1991. "The Earmarking of Government Revenue: A Review of Some World Bank Experience," The World Bank Research Observer, World Bank, vol. 6(1), pages 81-104, January.
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    6. Isham, Jonathan & Narayan, Deepa & Pritchett, Lant, 1995. "Does Participation Improve Performance? Establishing Causality with Subjective Data," The World Bank Economic Review, World Bank, vol. 9(2), pages 175-200, May.
    7. Seabright, Paul, 1996. "Accountability and decentralisation in government: An incomplete contracts model," European Economic Review, Elsevier, vol. 40(1), pages 61-89, January.
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    Cited by:

    1. Uday Bhanu Sinha & Abhijit Banerji & Shreekant Gupta & J. V. Meenakshi, 2019. "Editorial note," Indian Economic Review, Springer, vol. 54(1), pages 1-6, December.
    2. Wiggins, Steve & Marfo, Kofi & Anchirinah, Vincent, 2004. "Protecting the Forest or the People? Environmental Policies and Livelihoods in the Forest Margins of Southern Ghana," World Development, Elsevier, vol. 32(11), pages 1939-1955, November.
    3. Hazell, Peter & Poulton, Colin & Wiggins, Steve & Dorward, Andrew, 2010. "The Future of Small Farms: Trajectories and Policy Priorities," World Development, Elsevier, vol. 38(10), pages 1349-1361, October.
    4. M. Gopinath Reddy & Bishnu Prasad Mohapatra, 2017. "Decentralized Governance and Devolution of Funds to the Panchayats in India: A Critical Analysis of Two States," Studies in Indian Politics, , vol. 5(1), pages 42-54, June.
    5. Mody, Jyothsna, 2004. "Achieving accountability through decentralization : lessons for integrated river basin management," Policy Research Working Paper Series 3346, The World Bank.
    6. Monica Das Gupta, 1999. "Liberte, Egalite, Fraternite: Exploring the role of governance in fertility decline," Journal of Development Studies, Taylor & Francis Journals, vol. 35(5), pages 1-25.
    7. Maria Rosaria Garofalo & Maria Rosaria Supino, 2002. "Il Disegno Normativo del Welfare Municipale in Italia come Strumento per lo Sviluppo Economico e l'Allargamento delle Opportunita Occupazionali. Una Lettura Neoistituzionale della L. 328/00," CELPE Discussion Papers 67, CELPE - CEnter for Labor and Political Economics, University of Salerno, Italy.
    8. Raghav Gaiha, 2004. "Is There a Case for the Employment Guarantee Scheme in India? Some Recent Evidence," ASARC Working Papers 2004-09, The Australian National University, Australia South Asia Research Centre.
    9. Ganesh Thapa, 2004. "Rural Poverty Reduction Strategy for South Asia," ASARC Working Papers 2004-06, The Australian National University, Australia South Asia Research Centre.
    10. Galasso, Emanuela & Ravallion, Martin, 2005. "Decentralized targeting of an antipoverty program," Journal of Public Economics, Elsevier, vol. 89(4), pages 705-727, April.
    11. Galasso, Emanuela & Ravallion, Martin, 2000. "Distributional outcomes of a decentralized welfare program," Policy Research Working Paper Series 2316, The World Bank.
    12. Dilip Mookherjee & Pranab K. Bardhan, 2000. "Capture and Governance at Local and National Levels," American Economic Review, American Economic Association, vol. 90(2), pages 135-139, May.

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    More about this item

    JEL classification:

    • O0 - Economic Development, Innovation, Technological Change, and Growth - - General
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • P0 - Political Economy and Comparative Economic Systems - - General
    • P5 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems

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