Implementing Decentralized Local Governance: A Treacherous Road with Potholes, Detours, and Road Closures

During the past two decades, a silent revolution in public sector governance has swept across the globe aiming to move decision making for local public services closer to the people. The countries embracing and adapting to this silent revolution ha...

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Main Authors: Shah, Anwar, Thompson, Theresa
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, D.C. 2013
Subjects:
TAX
Online Access:http://documents.worldbank.org/curated/en/2004/06/4983931/implementing-decentralized-local-governance-treacherous-road-potholes-detours-road-closures
http://hdl.handle.net/10986/14178
id okr-10986-14178
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic ACCOUNTABILITY
AD HOC GRANTS
ASSIGNMENT OF EXPENDITURES
ASSIGNMENT OF TAXES
AUTHORITY
AUTONOMY
BORROWING
CAPITAL GRANTS
CAPITAL PROJECTS
CENTRAL GOVERNMENT
CENTRAL GOVERNMENT POLICY
CENTRAL GOVERNMENTS
CITIZENS
CIVIL SERVICE
COMMUNIST
CONSTITUTION
CONSTITUTIONS
CORPORATE INCOME TAX
CREDITWORTHINESS
DECENTRALIZATION
DECENTRALIZATION PROCESS
DECISION MAKING
DECISION-MAKING
DECONCENTRATION
DEFICITS
DEMOCRACY
DEMOCRATIZATION
DEVOLUTION
DISTRICTS
DIVISION OF POWERS
ECONOMIC GROWTH
ELECTED OFFICIALS
EMPLOYMENT
ETHNIC GROUPS
EXPENDITURE
EXPENDITURE ASSIGNMENTS
EXPENDITURE RESPONSIBILITIES
FEDERALISM
FINANCIAL TRANSACTIONS
FISCAL
FISCAL CAPACITIES
FISCAL CAPACITY
FISCAL CRISES
FISCAL CRISIS
FISCAL DECENTRALIZATION
FISCAL EQUALIZATION
FISCAL FEDERALISM
FISCAL GAP
FISCAL GAPS
FORMULA BASED TRANSFERS
FUEL TAXES
GOVERNMENT FINANCE
GOVERNMENT REGULATIONS
GOVERNMENT REVENUE
GOVERNMENT REVENUES
GOVERNMENT ROLE
GRANT DESIGN
GRANT PROGRAMS
HEALTH EXPENDITURES
HEALTH SPENDING
HOUSING
INTERGOVERNMENTAL TRANSFERS
INTERMEDIATE LEVEL GOVERNMENTS
LEGISLATORS
LEGISLATURE
LEVELS OF GOVERNMENT
LEVIES
LOBBYING
LOCAL AUTHORITIES
LOCAL COUNCILS
LOCAL GOVERNMENT
LOCAL GOVERNMENT AUTONOMY
LOCAL GOVERNMENT ELECTIONS
LOCAL GOVERNMENT FINANCE
LOCAL GOVERNMENT FUNCTIONS
LOCAL GOVERNMENT INSTITUTIONS
LOCAL GOVERNMENT REVENUE
LOCAL GOVERNMENTS
LOCAL REVENUE
MACROECONOMIC STABILITY
MATCHING GRANTS
MOTIVATIONS
MUNICIPAL SERVICES
MUNICIPALITIES
MUNICIPALITY
NATIONAL EXPENDITURES
NATIONAL GOVERNMENTS
NATIONAL LEVEL
NATIONS
NUISANCE TAXES
OPERATING EXPENDITURES
POLITICAL CRISIS
POLITICAL DECENTRALIZATION
POLITICAL FEASIBILITY
POLITICIANS
PRIVATE SECTOR
PRIVATE SECTOR PARTICIPATION
PROPERTY TAXES
PROPERTY TRANSFER TAXES
PROVINCIAL GOVERNMENTS
PROVISIONS
PUBLIC EXPENDITURES
PUBLIC GOVERNANCE
PUBLIC HEALTH
PUBLIC SECTOR
PUBLIC SECTOR EXPENDITURES
PUBLIC SERVICE
PUBLIC SERVICES
REGULATORY AUTHORITY
REPRESENTATIVES
REVENUE COLLECTION
REVENUE EQUALIZATION
REVENUE SHARING
REVOLUTION
ROADS
RURAL PROPERTY
SALES TAXES
SOCIAL SERVICES
STATE ENTERPRISES
SUBSIDIARITY PRINCIPLE
TAX
TAX AUTHORITY
TAX COLLECTION
TAX RATES
TAX SHARING
TELECOMMUNICATIONS
TOTAL EXPENDITURES
TRANSITION ECONOMIES
UNFUNDED MANDATES
URBAN TRANSPORTATION
USER CHARGES GOVERNANCE
DECENTRALIZATION
PUBLIC SECTOR
DECISION MAKING
DECENTRALIZATION IN GOVERNMENT
DECENTRALIZATION IN MANAGEMENT
REVENUE
AUTONOMY
FISCAL TRANSFERS
BORROWING
ACCOUNTABILITY
INCENTIVES
PUBLIC SERVICES
GLOBALIZATION
spellingShingle ACCOUNTABILITY
AD HOC GRANTS
ASSIGNMENT OF EXPENDITURES
ASSIGNMENT OF TAXES
AUTHORITY
AUTONOMY
BORROWING
CAPITAL GRANTS
CAPITAL PROJECTS
CENTRAL GOVERNMENT
CENTRAL GOVERNMENT POLICY
CENTRAL GOVERNMENTS
CITIZENS
CIVIL SERVICE
COMMUNIST
CONSTITUTION
CONSTITUTIONS
CORPORATE INCOME TAX
CREDITWORTHINESS
DECENTRALIZATION
DECENTRALIZATION PROCESS
DECISION MAKING
DECISION-MAKING
DECONCENTRATION
DEFICITS
DEMOCRACY
DEMOCRATIZATION
DEVOLUTION
DISTRICTS
DIVISION OF POWERS
ECONOMIC GROWTH
ELECTED OFFICIALS
EMPLOYMENT
ETHNIC GROUPS
EXPENDITURE
EXPENDITURE ASSIGNMENTS
EXPENDITURE RESPONSIBILITIES
FEDERALISM
FINANCIAL TRANSACTIONS
FISCAL
FISCAL CAPACITIES
FISCAL CAPACITY
FISCAL CRISES
FISCAL CRISIS
FISCAL DECENTRALIZATION
FISCAL EQUALIZATION
FISCAL FEDERALISM
FISCAL GAP
FISCAL GAPS
FORMULA BASED TRANSFERS
FUEL TAXES
GOVERNMENT FINANCE
GOVERNMENT REGULATIONS
GOVERNMENT REVENUE
GOVERNMENT REVENUES
GOVERNMENT ROLE
GRANT DESIGN
GRANT PROGRAMS
HEALTH EXPENDITURES
HEALTH SPENDING
HOUSING
INTERGOVERNMENTAL TRANSFERS
INTERMEDIATE LEVEL GOVERNMENTS
LEGISLATORS
LEGISLATURE
LEVELS OF GOVERNMENT
LEVIES
LOBBYING
LOCAL AUTHORITIES
LOCAL COUNCILS
LOCAL GOVERNMENT
LOCAL GOVERNMENT AUTONOMY
LOCAL GOVERNMENT ELECTIONS
LOCAL GOVERNMENT FINANCE
LOCAL GOVERNMENT FUNCTIONS
LOCAL GOVERNMENT INSTITUTIONS
LOCAL GOVERNMENT REVENUE
LOCAL GOVERNMENTS
LOCAL REVENUE
MACROECONOMIC STABILITY
MATCHING GRANTS
MOTIVATIONS
MUNICIPAL SERVICES
MUNICIPALITIES
MUNICIPALITY
NATIONAL EXPENDITURES
NATIONAL GOVERNMENTS
NATIONAL LEVEL
NATIONS
NUISANCE TAXES
OPERATING EXPENDITURES
POLITICAL CRISIS
POLITICAL DECENTRALIZATION
POLITICAL FEASIBILITY
POLITICIANS
PRIVATE SECTOR
PRIVATE SECTOR PARTICIPATION
PROPERTY TAXES
PROPERTY TRANSFER TAXES
PROVINCIAL GOVERNMENTS
PROVISIONS
PUBLIC EXPENDITURES
PUBLIC GOVERNANCE
PUBLIC HEALTH
PUBLIC SECTOR
PUBLIC SECTOR EXPENDITURES
PUBLIC SERVICE
PUBLIC SERVICES
REGULATORY AUTHORITY
REPRESENTATIVES
REVENUE COLLECTION
REVENUE EQUALIZATION
REVENUE SHARING
REVOLUTION
ROADS
RURAL PROPERTY
SALES TAXES
SOCIAL SERVICES
STATE ENTERPRISES
SUBSIDIARITY PRINCIPLE
TAX
TAX AUTHORITY
TAX COLLECTION
TAX RATES
TAX SHARING
TELECOMMUNICATIONS
TOTAL EXPENDITURES
TRANSITION ECONOMIES
UNFUNDED MANDATES
URBAN TRANSPORTATION
USER CHARGES GOVERNANCE
DECENTRALIZATION
PUBLIC SECTOR
DECISION MAKING
DECENTRALIZATION IN GOVERNMENT
DECENTRALIZATION IN MANAGEMENT
REVENUE
AUTONOMY
FISCAL TRANSFERS
BORROWING
ACCOUNTABILITY
INCENTIVES
PUBLIC SERVICES
GLOBALIZATION
Shah, Anwar
Thompson, Theresa
Implementing Decentralized Local Governance: A Treacherous Road with Potholes, Detours, and Road Closures
relation Policy Research Working Paper;No.3353
description During the past two decades, a silent revolution in public sector governance has swept across the globe aiming to move decision making for local public services closer to the people. The countries embracing and adapting to this silent revolution have had diverse motives and followed even more diverse approaches. This paper attempts to present a stylized view of the motivations and approaches used to strengthen local governance. The quest for the right balance, i.e. appropriate division of powers among different levels of government, is not always the primary reason for decentralizing. There is evidence that the decentralization decision may have more to do with short-term political considerations than the long-run benefits of decentralization. To take stock of progress worldwide, we take a comparative look at developments in political, fiscal and administrative decentralization for a selected group of countries. Most of the decentralization literature deals with normative issues regarding the assignment of responsibilities among different levels of government and the design of fiscal transfers. The process of decentralization has not received the attention it deserves as the best laid plans can fail due to implementation difficulties. We revisit major controversies regarding preferred approaches to obtaining a successful outcome. Key approaches examined are big push versus small steps; bottom up vs. top down; and uniform vs. asymmetric decentralization. Finally, Indonesia's 1999 big bang decentralization program is evaluated. The program should be commended for its achievements over a short period of time, however incentives are lacking for local governments to be accountable and responsive to their residents.
format Publications & Research :: Policy Research Working Paper
author Shah, Anwar
Thompson, Theresa
author_facet Shah, Anwar
Thompson, Theresa
author_sort Shah, Anwar
title Implementing Decentralized Local Governance: A Treacherous Road with Potholes, Detours, and Road Closures
title_short Implementing Decentralized Local Governance: A Treacherous Road with Potholes, Detours, and Road Closures
title_full Implementing Decentralized Local Governance: A Treacherous Road with Potholes, Detours, and Road Closures
title_fullStr Implementing Decentralized Local Governance: A Treacherous Road with Potholes, Detours, and Road Closures
title_full_unstemmed Implementing Decentralized Local Governance: A Treacherous Road with Potholes, Detours, and Road Closures
title_sort implementing decentralized local governance: a treacherous road with potholes, detours, and road closures
publisher World Bank, Washington, D.C.
publishDate 2013
url http://documents.worldbank.org/curated/en/2004/06/4983931/implementing-decentralized-local-governance-treacherous-road-potholes-detours-road-closures
http://hdl.handle.net/10986/14178
_version_ 1764430471193690112
spelling okr-10986-141782021-04-23T14:03:21Z Implementing Decentralized Local Governance: A Treacherous Road with Potholes, Detours, and Road Closures Shah, Anwar Thompson, Theresa ACCOUNTABILITY AD HOC GRANTS ASSIGNMENT OF EXPENDITURES ASSIGNMENT OF TAXES AUTHORITY AUTONOMY BORROWING CAPITAL GRANTS CAPITAL PROJECTS CENTRAL GOVERNMENT CENTRAL GOVERNMENT POLICY CENTRAL GOVERNMENTS CITIZENS CIVIL SERVICE COMMUNIST CONSTITUTION CONSTITUTIONS CORPORATE INCOME TAX CREDITWORTHINESS DECENTRALIZATION DECENTRALIZATION PROCESS DECISION MAKING DECISION-MAKING DECONCENTRATION DEFICITS DEMOCRACY DEMOCRATIZATION DEVOLUTION DISTRICTS DIVISION OF POWERS ECONOMIC GROWTH ELECTED OFFICIALS EMPLOYMENT ETHNIC GROUPS EXPENDITURE EXPENDITURE ASSIGNMENTS EXPENDITURE RESPONSIBILITIES FEDERALISM FINANCIAL TRANSACTIONS FISCAL FISCAL CAPACITIES FISCAL CAPACITY FISCAL CRISES FISCAL CRISIS FISCAL DECENTRALIZATION FISCAL EQUALIZATION FISCAL FEDERALISM FISCAL GAP FISCAL GAPS FORMULA BASED TRANSFERS FUEL TAXES GOVERNMENT FINANCE GOVERNMENT REGULATIONS GOVERNMENT REVENUE GOVERNMENT REVENUES GOVERNMENT ROLE GRANT DESIGN GRANT PROGRAMS HEALTH EXPENDITURES HEALTH SPENDING HOUSING INTERGOVERNMENTAL TRANSFERS INTERMEDIATE LEVEL GOVERNMENTS LEGISLATORS LEGISLATURE LEVELS OF GOVERNMENT LEVIES LOBBYING LOCAL AUTHORITIES LOCAL COUNCILS LOCAL GOVERNMENT LOCAL GOVERNMENT AUTONOMY LOCAL GOVERNMENT ELECTIONS LOCAL GOVERNMENT FINANCE LOCAL GOVERNMENT FUNCTIONS LOCAL GOVERNMENT INSTITUTIONS LOCAL GOVERNMENT REVENUE LOCAL GOVERNMENTS LOCAL REVENUE MACROECONOMIC STABILITY MATCHING GRANTS MOTIVATIONS MUNICIPAL SERVICES MUNICIPALITIES MUNICIPALITY NATIONAL EXPENDITURES NATIONAL GOVERNMENTS NATIONAL LEVEL NATIONS NUISANCE TAXES OPERATING EXPENDITURES POLITICAL CRISIS POLITICAL DECENTRALIZATION POLITICAL FEASIBILITY POLITICIANS PRIVATE SECTOR PRIVATE SECTOR PARTICIPATION PROPERTY TAXES PROPERTY TRANSFER TAXES PROVINCIAL GOVERNMENTS PROVISIONS PUBLIC EXPENDITURES PUBLIC GOVERNANCE PUBLIC HEALTH PUBLIC SECTOR PUBLIC SECTOR EXPENDITURES PUBLIC SERVICE PUBLIC SERVICES REGULATORY AUTHORITY REPRESENTATIVES REVENUE COLLECTION REVENUE EQUALIZATION REVENUE SHARING REVOLUTION ROADS RURAL PROPERTY SALES TAXES SOCIAL SERVICES STATE ENTERPRISES SUBSIDIARITY PRINCIPLE TAX TAX AUTHORITY TAX COLLECTION TAX RATES TAX SHARING TELECOMMUNICATIONS TOTAL EXPENDITURES TRANSITION ECONOMIES UNFUNDED MANDATES URBAN TRANSPORTATION USER CHARGES GOVERNANCE DECENTRALIZATION PUBLIC SECTOR DECISION MAKING DECENTRALIZATION IN GOVERNMENT DECENTRALIZATION IN MANAGEMENT REVENUE AUTONOMY FISCAL TRANSFERS BORROWING ACCOUNTABILITY INCENTIVES PUBLIC SERVICES GLOBALIZATION During the past two decades, a silent revolution in public sector governance has swept across the globe aiming to move decision making for local public services closer to the people. The countries embracing and adapting to this silent revolution have had diverse motives and followed even more diverse approaches. This paper attempts to present a stylized view of the motivations and approaches used to strengthen local governance. The quest for the right balance, i.e. appropriate division of powers among different levels of government, is not always the primary reason for decentralizing. There is evidence that the decentralization decision may have more to do with short-term political considerations than the long-run benefits of decentralization. To take stock of progress worldwide, we take a comparative look at developments in political, fiscal and administrative decentralization for a selected group of countries. Most of the decentralization literature deals with normative issues regarding the assignment of responsibilities among different levels of government and the design of fiscal transfers. The process of decentralization has not received the attention it deserves as the best laid plans can fail due to implementation difficulties. We revisit major controversies regarding preferred approaches to obtaining a successful outcome. Key approaches examined are big push versus small steps; bottom up vs. top down; and uniform vs. asymmetric decentralization. Finally, Indonesia's 1999 big bang decentralization program is evaluated. The program should be commended for its achievements over a short period of time, however incentives are lacking for local governments to be accountable and responsive to their residents. 2013-06-25T18:00:48Z 2013-06-25T18:00:48Z 2004-06 http://documents.worldbank.org/curated/en/2004/06/4983931/implementing-decentralized-local-governance-treacherous-road-potholes-detours-road-closures http://hdl.handle.net/10986/14178 English en_US Policy Research Working Paper;No.3353 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, D.C. Publications & Research :: Policy Research Working Paper Publications & Research