Publication
14 Dec 2002
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.
Download |
English (PDF, 39 pages, 431 KB) |
---|---|
Author | Jean-Paul Faguet |
Series | LSE International Development Working Papers |
Issue | 39 |
Publisher | LSE Department of International Development (ID) |
Copyright | © 2002 LSE |