Jean-Paul Faguet
Does decentralization increase government responsiveness to local needs?
London School of Economics and Political Science
paper examines whether decentralization increases responsiveness public investment local needs using unique database bolivia empirical tests show investment patterns human capital social services changed significantly decentralization changes strongly positively related objective indicators need nationally changes driven smallest poorest municipalities investing devolved funds highestpriority projects findings contradict common claims local government corrupt institutionally weak prone interestgroup capture improve upon central governments allocation public resources