Since the days of Montesquieu and Jefferson, political
decentralization has been seen as a force for better government and
economic performance. It is thought to bring government ???closer
to the people???, nurture civic virtue, protect liberty, exploit
local information, stimulate policy innovation, and alleviate
ethnic tensions. Inspired by such arguments, and generously funded
by the major development agencies, countries across the globe have
been racing to devolve power to local governments. This book
re-examines the arguments that underlie the modern faith in
decentralization. Using logical analysis and formal modeling, and
appealing to numerous examples, it shows that most are based on
vague intuitions or partial views that do not withstand scrutiny. A
review of empirical studies of decentralization finds these as
inconclusive and mutually contradictory as the theories they set
out to test.
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