Does Decentralization Increase Responsiveness to Local Needs? Evidence from Bolivia

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dc.creatorFaguet, Jean-Paul
dc.date2014-08-26T20:27:33Z
dc.date2014-08-26T20:27:33Z
dc.date2001-01
dc.date.accessioned2026-07-01T01:26:29Z
dc.descriptionSignificant changes in public investment patterns - in both the sectoral uses of funds, and their geographic distribution - emerged after Bolivia devolved substantial resources from central agencies, to municipalities in 1994. By far the most important determinant of these changes are objective indicators of social need (for example, education investment rises where illiteracy is higher). Indicators of institutional capacity, and social organization are less important. Empirical tests using a unique database show that investment changed significantly in education, agriculture, urban development, water management, water and sanitation, and possibly health. These results are robust, and insensitive to specification. As the smallest, poorest municipalities invested newly devolved public funds in their highest priority projects, investment showed a strong, positive relationship with need in agriculture, and the social sectors. In sectors where decentralization did not bring about changes, the central government had invested little before a994, and the local government continued to invest little afterward. These findings are consistent with a model of public investment, in which local government's superior knowledge of local needs, dominates the central government's technical, and organizational advantage in the provision of public services.
dc.formatapplication/pdf
dc.formattext/plain
dc.identifierhttp://documents.worldbank.org/curated/en/2001/01/888084/decentralization-increase-responsiveness-local-needs-evidence-bolivia
dc.identifierhttps://hdl.handle.net/10986/19723
dc.identifierhttps://doi.org/10.1596/1813-9450-2516
dc.identifier.urihttp://hdl.handle.net/123456789/418122
dc.languageEnglish
dc.languageen_US
dc.publisherWorld Bank, Washington, DC
dc.relationPolicy Research Working Paper;No. 2516
dc.rightsCC BY 3.0 IGO
dc.rightshttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCOUNTABILITY
dc.subjectACCOUNTING
dc.subjectADMINISTRATIVE CAPABILITY
dc.subjectADMINISTRATIVE CAPACITY
dc.subjectAGRICULTURE
dc.subjectAUTHORITY
dc.subjectBUREAUCRACY
dc.subjectCAPITALS
dc.subjectCENTRAL AGENCIES
dc.subjectCENTRAL GOVERNMENT
dc.subjectCENTRAL GOVERNMENTS
dc.subjectCITIES
dc.subjectCITIZENS
dc.subjectCONSENSUS
dc.subjectCORRUPTION
dc.subjectCOUNCILS
dc.subjectDECENTRALIZATION
dc.subjectDECENTRALIZATION REFORM
dc.subjectDECONCENTRATION
dc.subjectDEMOCRATIC REGIMES
dc.subjectDEMOCRATIC SYSTEMS
dc.subjectDEVELOPMENT STRATEGIES
dc.subjectDEVELOPMENT STRATEGY
dc.subjectDEVOLUTION
dc.subjectDISTRICTS
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC INCENTIVES
dc.subjectECONOMIC PERFORMANCE
dc.subjectECONOMIES OF SCALE
dc.subjectECONOMISTS
dc.subjectELECTED REPRESENTATIVES
dc.subjectEMPLOYMENT
dc.subjectEQUILIBRIUM
dc.subjectEXECUTIVE AGENCIES
dc.subjectEXOGENOUS VARIABLES
dc.subjectEXPENDITURE
dc.subjectEXTERNALITIES
dc.subjectFINANCIAL SUPPORT
dc.subjectFISCAL
dc.subjectFISCAL DECENTRALIZATION
dc.subjectFOREIGN INVESTMENT
dc.subjectGOVERNMENT RESOURCES
dc.subjectINCOME
dc.subjectINEFFICIENCY
dc.subjectINSTITUTIONAL CAPACITY
dc.subjectLEGISLATURES
dc.subjectLOCAL GOVERNMENT
dc.subjectLOCAL GOVERNMENTS
dc.subjectMANAGERIAL EFFICIENCY
dc.subjectMERIT GOOD
dc.subjectMINISTRY OF FINANCE
dc.subjectMORAL HAZARD
dc.subjectMUNICIPAL GOVERNMENT
dc.subjectMUNICIPAL GOVERNMENTS
dc.subjectMUNICIPALITIES
dc.subjectMUNICIPALITY
dc.subjectNATIONAL TERRITORY
dc.subjectPOLICY INSTRUMENTS
dc.subjectPOLITICAL POWER
dc.subjectPOLITICIANS
dc.subjectPRIVATE GOODS
dc.subjectPRIVATIZATION
dc.subjectPRIVATIZATION OF STATE
dc.subjectPUBLIC ADMINISTRATION
dc.subjectPUBLIC EXPENDITURE
dc.subjectPUBLIC FUNDS
dc.subjectPUBLIC GOOD
dc.subjectPUBLIC GOODS
dc.subjectPUBLIC HEALTH
dc.subjectPUBLIC INVESTMENT
dc.subjectPUBLIC SECTOR
dc.subjectPUBLIC SERVICE
dc.subjectPUBLIC SERVICE PROVISION
dc.subjectPUBLIC SERVICES
dc.subjectREPRESENTATIVES
dc.subjectREVENUE SHARING
dc.subjectREVOLUTION
dc.subjectSEPARATION OF POWERS
dc.subjectSOCIAL PACT
dc.subjectSOCIAL SECTORS
dc.subjectSOCIAL WELFARE
dc.subjectTAX REVENUES
dc.subjectTAXATION
dc.subjectTRADITIONAL ECONOMIES
dc.subjectTRANSPORT
dc.subjectUNDERESTIMATES
dc.subjectUPPER HOUSE
dc.subjectURBAN DEVELOPMENT
dc.subjectUTILITY FUNCTIONS
dc.subjectVOTERS
dc.titleDoes Decentralization Increase Responsiveness to Local Needs? Evidence from Bolivia

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