The Political Economy of Democratic Decentralization (Directions in Development)

Advocates of pluralist, competitive politics have regarded decentralization as a device for deepening democracy or for prying closed systems open and to give interest groups space in which to organize, compete and otherwise assert themselves. Some politicians in central governments see it as a means of delegating expensive tasks to others lower down. From a political economy perspective, this study examines the origins of the current wave of decentralizations in less-developed countries and its implications, especially its promise and limitations for rural development. It is based mainly on empirical evidence drawn from experiments with decentralization in a large number of countries. The paper is divided into six parts. Part I defines terms to show that the word 'decentralization' can mean many different things. Part II examines why some political regimes have often tended not to decentralize even when all indicators support the need for it. Part III seeks to explain the tendency of many regimes during the early 1980s to decentralize. Part IV examines the encounter between decentralized institutions and how they operate within their state-society and political milieu. Part V discusses the advantages and disadvantages of decentralization. Part VI assesses the promise of decentralization for rural development. Annotation Advocates of pluralist, competitive politics have regarded decentralization as a device for deepening democracy or for prying closed systems open and to give interest groups space in which to organize, compete and otherwise assert themselves. Some politicians in central governments see it as a means of delegating expensive tasks to others lower down. From a political economy perspective, this study examines the origins of the current wave of decentralizations in less-developed countries and its implications, especially its promise and limitations for rural development. It is based mainly on empirical evidence drawn from experiments with decentralization in a large number of countries. The paper is divided into six parts. Part I defines terms to show that the word 'decentralization' can mean many different things. Part II examines why some political regimes have often tended not to decentralize even when all indicators support the need for it. Part III seeks to explain the tendency of many regimes during the early 1980s to decentralize. Part IV examines the encounter between decentralized institutions and how they operate within their state-society and political milieu. Part V discusses the advantages and disadvantages of decentralization. Part VI assesses the promise of decentralization for rural development Nearly all countries worldwide are now experimenting with decentralization. Their motivation are diverse. Many countries are decentralizing because they believe this can help stimulate economic growth or reduce rural poverty, goals central government interventions have failed to achieve. Some countries see it as a way to strengthen civil society and deepen democracy. Some perceive it as a way to off-load expensive responsibilities onto lower level governments. Thus, decentralization is seen as a solution to many different kinds of problems. This report examines the origins and implications decentralization from a political economy perspective, with a focus on its promise and limitations. It explores why countries have often chosen not to decentralize, even when evidence suggests that doing so would be in the interests of the government. It seeks to explain why since the early 1980s many countries have undertaken some form of decentralization. This report also evaluates the evidence to understand where decentralization has considerable promise and where it does not. It identifies conditions needed for decentralization to succeed. It identifies the ways in which decentralization can promote rural development. And it names the goals which decentralization will probably not help achieve