Does decentralization enhance service delivery and poverty reduction? Drawing on cutting edge research, expert contributors address this fundamental question facing policy-makers in developing as well as advanced countries. This timely book builds upon insights on the recent developments in the intergovernmental literature first outlined in the Handbook of Fiscal Federalism. New empirical evidence from across the globe is presented: policy-oriented chapters evaluate fiscal federalism with an emphasis on the effectiveness of decentralized service delivery, the decentralization process in different parts of the world is appraised, and specially commissioned research focuses on the political economy process and the outcomes of the decentralization process. The role of international agencies, as explicit donors, is examined in several chapters.

The World Development Report (WDR) 2004 warns that broad improvements in human welfare will not occur unless poor people receive wider access to affordable, better quality services in health, education, water, sanitation, and electricity. Without such improvements, freedom from illness and from illiteracy, two of the most important ways poor people can escape poverty, will remain elusive to many. This report builds an analytical and practical framework for using resources, whether internal or external, more effectively by making services work for poor people. The focus is on those services that have the most direct link with human development, education, health, water, sanitation, and electricity. This presents an enormous challenge, because making services work for the poor involves changing, not only service delivery arrangements, but also public sector institutions, and how foreign aid is transferred. This WDR explores the many dimensions of poverty, through outcomes of service delivery for poor people, and stipulates affordable access to services is low especially for poor people in addition to a wide range of failures in quality. The public responsibility is highlighted, addressing the need for more public spending, and technical adjustments, based on incentives and understanding what, and why services need to be improved. Thus, through an analytical framework, it is suggested the complexity of accountability must be established, as well as instruments for reforming institutions to improve services, illustrated through various case studies, both in developing, and developed countries. The report further outlines that scaling up reforms means sectoral reforms must be linked to ongoing or nascent public sector reforms, in areas such as budget management, decentralization, and public administration reform, stimulated through information as a catalyst for change, and as an input to prod the success of other reforms.

The World Development Report (WDR) 2004 warns that broad improvements in human welfare will not occur unless poor people receive wider access to affordable, better quality services in health, education, water, sanitation, and electricity. Without such improvements, freedom from illness and from illiteracy, two of the most important ways poor people can escape poverty, will remain elusive to many. This report builds an analytical and practical framework for using resources, whether internal or external, more effectively by making services work for poor people. The focus is on those services that have the most direct link with human development, education, health, water, sanitation, and electricity. This presents an enormous challenge, because making services work for the poor involves changing, not only service delivery arrangements, but also public sector institutions, and how foreign aid is transferred. This WDR explores the many dimensions of poverty, through outcomes of service delivery for poor people, and stipulates affordable access to services is low especially for poor people in addition to a wide range of failures in quality. The public responsibility is highlighted, addressing the need for more public spending, and technical adjustments, based on incentives and understanding what, and why services need to be improved. Thus, through an analytical framework, it is suggested the complexity of accountability must be established, as well as instruments for reforming institutions to improve services, illustrated through various case studies, both in developing, and developed countries. The report further outlines that scaling up reforms means sectoral reforms must be linked to ongoing or nascent public sector reforms, in areas such as budget management, decentralization, and public administration reform, stimulated through information as a catalyst for change, and as an input to prod the success of other reforms.

States in one federal nation, following the same Constitution, laws, and intergovernmental finance system, and subject to the same election cycles, Kerala and Uttar Pradesh remain worlds apart in human development. Their divergence translates into dramatic differences in the quality of life for millions-Uttar Pradesh, with 175 million people in 2001, is larger than all but six countries in the world (Kerala is 32 million). This paper highlights why the two are worlds apart, and the paths of history, politics, and public policy that each followed to get there. The paper focuses on achievements and failure, of the power of public action and the burden of official inertia.

The World Development Report (WDR) 2004 warns that broad improvements in human welfare will not occur unless poor people receive wider access to affordable, better quality services in health, education, water, sanitation, and electricity. Without such improvements, freedom from illness and from illiteracy, two of the most important ways poor people can escape poverty, will remain elusive to many. This report builds an analytical and practical framework for using resources, whether internal or external, more effectively by making services work for poor people. The focus is on those services that have the most direct link with human development, education, health, water, sanitation, and electricity. This presents an enormous challenge, because making services work for the poor involves changing, not only service delivery arrangements, but also public sector institutions, and how foreign aid is transferred. This WDR explores the many dimensions of poverty, through outcomes of service delivery for poor people, and stipulates affordable access to services is low especially for poor people in addition to a wide range of failures in quality. The public responsibility is highlighted, addressing the need for more public spending, and technical adjustments, based on incentives and understanding what, and why services need to be improved. Thus, through an analytical framework, it is suggested the complexity of accountability must be established, as well as instruments for reforming institutions to improve services, illustrated through various case studies, both in developing, and developed countries. The report further outlines that scaling up reforms means sectoral reforms must be linked to ongoing or nascent public sector reforms, in areas such as budget management, decentralization, and public administration reform, stimulated through information as a catalyst for change, and as an input to prod the success of other reforms.

Good policies, sound investments, and sustainable progress on poverty reduction all require good governance and effective public sector institutions. Solid improvements in governance will be required if many low- income countries are to attain the Millennium Development Goals, and better and more accountable public sector performance is needed to make services work for poor people. This paper explores how low- income countries are approaching governance and public sector reforms in their Poverty Reduction Strategy Papers (PRSPs), expected to become the basis for all concessional development assistance and debt relief from the World Bank and IMF. Based on the early experience of PRSPs, it suggests lessons for countries, donors, and the PRSP approach. In coping with serious policy, capacity, and institutional constraints, an important challenge to be addressed by most PRSPs is to come up with realistic priorities for governance and public sector reforms and a minimalist but self-reinforcing agenda that is suited to the starting point for each country.