Cookies?
Library Header Image
LSE Research Online LSE Library Services

A model of central vs decentralized government: self-interest and mis-allocation in Bolivia

Faguet, Jean-Paul ORCID: 0000-0002-7188-0098 (2002) A model of central vs decentralized government: self-interest and mis-allocation in Bolivia. DESTIN working papers (39). London School of Economics and Political Science. Development Studies Institute, London, UK.

[img]
Preview
PDF
Download (502kB) | Preview

Abstract

The recent, much remarked upon decentralization in Bolivia produced four important changes in the nation’s public finances: (1) a sharp fall in the geographic concentration of investment; (2) a sea-change in the uses of investment away from infrastructure towards the social sectors; (3) a significant increase in government responsiveness to local needs; and (4) increased investment in poorer municipalities. Existing theoretical treatments of decentralization cannot account for these phenomena. This paper develops a model of government which relies on political bargaining between municipal representatives and central government agents over the allocation of public resources. By invoking central government self-interest, I can explain the Bolivian experience. Lastly I introduce the concept of residual power, which underpins the model, as key to understanding decentralization. Analyzing the location of residual power in a political system can help cut through the thicket of contradictory claims that fill the decentralization literature.

Item Type: Monograph (Working Paper)
Official URL: http://www.lse.ac.uk/collections/DESTIN
Additional Information: © 2003 The Author
Divisions: STICERD
International Development
Subjects: J Political Science > JC Political theory
Date Deposited: 16 Dec 2008 14:43
Last Modified: 13 Sep 2024 19:46
URI: http://eprints.lse.ac.uk/id/eprint/13421

Actions (login required)

View Item View Item

Downloads

Downloads per month over past year

View more statistics