Author

Litvack, Jennie, and Jessica Seddon

1999

Number of Pages:

99

Full Text

Decentralization Briefing Notes

Abstract

Decentralization, a set of policies that encompasses fiscal, political, and administrative changes, can impact

virtually all aspects of development. The structure of intergovernmental relations affects everything from the

efficiency and equity of service delivery, the social safety net, and poverty alleviation programs to the

development of the financial sector and macroeconomic stability. Unfortunately, the far-reaching implications

of decentralization are often overlooked, as the literature and specialists tend to focus on specific

dimensions.

The notes in this volume are designed to highlight the broad range of issues that need to be considered with

regard to decentralization. They are intended to provide brief overviews of the many different aspects of

decentralization and summarize key issues that need to be considered by practitioners. The notes were

prepared originally for a World Bank internal web site to help Bank staff understand the multidimensional

aspects of decentralization. Each note is not meant to address its topic in great depth, but rather to help

readers consider which questions to ask in their countries. Most importantly, by bringing these individual notes

together in this volume, readers are encouraged to consider the cross-cutting nature of decentralization and

the importance of a comprehensive approach.

The volume is divided into four chapters. The first chapter, What and Why, provides an overview and

explains the multidimensional nature as well as the rationale for decentralization. It also sets the stage for

understanding that the impact of decentralization will depend greatly on many specific policy and institutional

issues described in the second chapter, Project Design: Political, Fiscal, and Administrative Decentralization.

The third chapter, Service Delivery, focuses on issues pertaining to decentralization of specific sectors and

the delivery of different services (education, health care, safety nets, infrastructure). Finally, the fourth

chapter, Potential Impacts of Decentralization, discusses potential impacts on equity objectives,

macroeconomic stability, growth, and accountability and corruption.