DECENTRALIZATION, GOVERNANCE AND PUBLIC SERVICES THE IMPACT OF INSTITUTIONAL ARRANGEMENTS
A REVIEW OF THE LITERATURE
Omar Azfar, Satu Kähkönen, Anthony Lanyi, Patrick Meagher, and Diana Rutherford IRIS Center, University of Maryland, College Park September 1999

Table of Contents
1 2 INTRODUCTION............................................................................................1 IMPACT OF DECENTRALIZATION ON PUBLIC SERVICES: THEORY AND EVIDENCE ............................................................................................2

2.1 Theory.............................................................................................................................................. 2 2.1.a Allocative Efficiency............................................................................................................... 2 2.1.b Accountability ......................................................................................................................... 3 2.1.c Cost Recovery ......................................................................................................................... 3 2.2 Evidence........................................................................................................................................... 3

3

FACTORS INFLUENCING THE PERFORMANCE OF DECENTRALIZED SERVICE PROVISION...................................................................................5

3.1 The Political Framework................................................................................................................ 5 3.1.a Constitution and Legal Framework......................................................................................... 5 3.1.b Political and Electoral Systems ............................................................................................... 6 3.1.c Unitary vs. Federal