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Decentralisation and Supply Efficiency: The case of Rural Water Supply in Central India

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  • Anand Asthana

Abstract

Demand for decentralisation of provision of public services is gaining ground in developing countries. Also, the policy advice to decentralise given by international agencies to the developing countries is turning into pressure. However, the benefits of decentralisation are not as obvious as the standard theory of fiscal federalism predicts. This article examines the effect of decentralisation of provision of drinking water in central India. The efficiency of water utilities under the control of the state government and those under the local governments is compared in terms of expense and asset utilisation. It is found that the decentralised provision of water supply is less efficient. The possible reasons for this counter intuitive result are analysed.

Suggested Citation

  • Anand Asthana, 2003. "Decentralisation and Supply Efficiency: The case of Rural Water Supply in Central India," Journal of Development Studies, Taylor & Francis Journals, vol. 39(4), pages 148-159.
    • Handle: RePEc:taf:jdevst:v:39:y:2003:i:4:p:148-159
    DOI: 10.1080/713601203
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    Citations

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    Cited by:

    1. Faguet, Jean-Paul & Ali, Zulfiqar, 2009. "Making Reform Work: Institutions, Dispositions, and the Improving Health of Bangladesh," World Development, Elsevier, vol. 37(1), pages 208-218, January.
    2. Kayode Taiwo, 2024. "The Effect of Decentralisation on Access to Sanitation and Water Services: An Empirical Test using International Data," Hacienda Pública Española / Review of Public Economics, IEF, vol. 249(2), pages 157-180, June.
    3. Sauer, Johannes, 2004. "Rural Water Suppliers And Efficiency - Empirical Evidence From East And West Germany," IAMO Discussion Papers 14866, Institute of Agricultural Development in Transition Economies (IAMO).
    4. Faguet, Jean-Paul & Ali, Zulfiqar, 2007. "A tale of two Upazilas : local governance and social development in Bangladesh," LSE Research Online Documents on Economics 2396, London School of Economics and Political Science, LSE Library.
    5. Vásquez, William F., 2011. "Household preferences and governance of water services: A hedonic analysis from rural Guatemala," IFPRI discussion papers 1152, International Food Policy Research Institute (IFPRI).
    6. Collen Zalengera & Long Seng To & Richard Sieff & Alison Mohr & Aran Eales & Jon Cloke & Hannah Buckland & Ed Brown & Richard Blanchard & Simon Batchelor, 2020. "Decentralization: the key to accelerating access to distributed energy services in sub-Saharan Africa?," Journal of Environmental Studies and Sciences, Springer;Association of Environmental Studies and Sciences, vol. 10(3), pages 270-289, September.
    7. Sauer, Johannes, 2004. "Rural water suppliers and efficiency: Empirical evidence from East and West Germany," IAMO Discussion Papers 63, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    8. William Vásquez & Dina Franceschi, 2013. "System Reliability and Water Service Decentralization: Investigating Household Preferences in Nicaragua," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 27(14), pages 4913-4926, November.

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