Does Decentralization Reform Always Increase Economic Growth?: A Cross Country Comparison of the Performance

This study aims to test the impact of decentralization on the economic growth of a country. Based on the longitudinal data set of 63 countries with a time series spanning 1960 to 2007, the test result reveals that there is a negative relationship both between fiscal decentralization and GDP growth and between political decentralization and GDP growth. In order to examine the different impacts of decentralization, the same analysis was applied to subsets of countries categorized into three groups according to the economic stage of the country. This further analysis found that there is a negative relationship between political decentralization and growth in developing countries, between fiscal decentralization and growth in semi-developed countries, but no relationship in developed countries. These results show that decentralization is not always instrumental in economic growth, which means that the time variable, or more precisely the stage of economic development of a country, is an important factor when introducing decentralization reforms.     

Ideas,interests and practical authority in reform politics: decentralization reform in South Korea in the 2000s

This paper explains the reason why the hitherto statist country, Korea, has carried out significant decentralization since the 2000s. In explaining the motivation for decentralization, extant literature has focused on the role of parties, bureaucratic politics, democratization, or territorial interests. Yet there is still limited explanation of how the decentralization laws in Korea could be successfully passed in the 2000s, while cental stakeholders still persisted. By tracing the process of decentralization reform in the 2000s, this article demonstrates how structural factors created favourable circumstances and discursive background for institutional change, and how the idea of decentralization, through the idea diffusion mechanism, gave directions for central decision makers to produce a specific path of reform strategies. It also pays attention to the formation of ‘practical authority’ for reform politicians that made it possible to overcome obdurate resistance from central bureaucrats and politicians.     

Fiscal decentralisation and IDC economic growth: An empirical investigation

The impact of fiscal decentralisation on LDC economic growth and development is widely debated in the development literature. Notwithstanding this, there has been little attempt to test systematically this relationship. Accordingly, in this note we present an empirical examination of the relationship between the level of fiscal decentralisation and economic growth rates across a sample of twenty‐three LDCsfrom 1974 to 1991. We fail to find, however, any strong, systematic relationship between the two among our sample of LDCs.     

Building the Education Revolution: Another Case of Australian Government Failure?

Since the 2007 federal election, the Australian government has implemented a plethora of new programs, many with dual economic and social objectives. A significant number of these initiatives have not only proved unsuccessful, but have also been criticized for their implementation and subsequent administration. This paper examines the Building Education Revolution Program, which commenced in 2009 with the objective of stimulating employment growth and improving school infrastructure, through the analytical prism of the government failure paradigm as well as the literature on “hollowing out” and decentralization. It is argued that the BER Program represents a “case study” of how governments should not pursue large-scale public expenditure programs.     

Decentralization,Government Capacity,and Environmental Policy Performance: A Cross-National Analysis

This study examines how decentralization and government capacity interactively shape national environmental policy performance. Despite the extensive literature on the policy consequences of decentralization, what remains deficient is a proper understanding of the role that government capacity may play in the process. This study advances an integrative proposition that decentralization can improve policy performance if the government is equipped with capable, efficient and trustworthy administrative apparatus. Findings from a cross-national analysis on national environmental policy performance lend strong support for the general argument by revealing that such positive effects of decentralization are significantly strengthened by the quality of government capacity.     

Aid instability as a measure of uncertainty and the positive impact of aid on growth

This article contributes to the literature on aid and economic growth. We posit that uncertainty, measured as the instability of aid receipts, will influence the relationship between aid and investment, how recipient governments respond to aid, and will capture the fact that some countries are especially vulnerable to shocks. When we account for uncertainty (which is negative and significant), we find that aid has a significant positive effect on growth, largely due to its effect on the volume of investment. The finding that uncertainty of aid receipts reduces the effectiveness of aid is robust. When the regression is estimated for the sub‐sample of African countries these findings hold, although the effectiveness of aid appears weaker than for the full sample.     

Definitions and Typologies in Public Administration Research: The Case of Decentralization

The field of public administration knows many concepts. By focusing on one such concept, this research shows how definitions can be deceptive, and how typologies unable to capture all dimensions of a concept can blind policy makers and researchers. We concentrate our attention on decentralization. This has been a core concept in the field of public administration for decades. Definitions and typologies of decentralization have flourished. The present study gives an overview. We categorize definitions and analyse their different emphases. Typologies serve to order and compare items, but have themselves become prone to disorder. We provide a meta-analysis of typologies, exposing the wide variety of policy dimensions. Even after aggregation, typologies ignore—and definitions explicitly exclude—certain aspects of decentralization. One such issue is “silent decentralization.” It is characterized by absence of explicit decentralization reform, and thus distinguishes itself mainly by its potential origins: network changes, initiative shifts, policy emphasis developments, or resource availability alterations. Highlighting this particular aspect might well proof useful for other concepts in the field as well.     

Country size and economic growth and development

This paper attempts to provide limited empirical evidence on the nature of the relationship between country size and rates of economic growth and levels of economic development, and on the possible effects of trade concentration and dependence on trade on this relationship. It suggests that there is no discernible association between country size and economic development, nor between country size and economic growth, and that neither the dependence on trade of small countries nor their commodity and geographic export concentration are necessarily important factors in economic growth and economic development.     

Australian Government Failure and the Green Loans Program

Since the 2007 federal election, the Australian government has implemented numerous new programs, many with dual economic and environmental objectives. A significant number of these initiatives have not only proved unsuccessful, but have also been criticized for their implementation and subsequent management. Using the conceptual prisms offered by the literature on decentralization, augmented by the government failure paradigm, this article considers the aborted Green Loans Program, which commenced in July 2009 with the aim of encouraging water and energy efficiency in existing homes through financial assistance for investment in water and energy-efficient technologies.     

Colonisation,Institutions and Development: New Evidence

This article analyses current attempts to identify the factors underlying long-term economic growth. The author criticises some of the arguments and historical evidence on which the two main explanations that dominate recent literature are based: the institutional approach and the approach focusing on the importance of geographical factors. Using an approach which is deliberately eclectic, the author considers the role of geography, international trade, human capital and institutional quality in explaining development. A new estimation is carried out through Two Stages Least Squares (TSLS) with instrumental variables. The results of the empirical model confirm the central role of institutions in long-term economic growth. However, certain geographical conditions also seem to have influenced countries' chances of progress. The human capital is a less robust factor in explaining economic growth and trade openness does not seem significant in any estimation. Nevertheless, several questions remain to be answered, suggesting that cross-country estimations need to be complemented with a deeper historical analysis.     

Transition strategy,corporate exploitation,and state capture: An empirical analysis of the former Soviet states

It is difficult to find, at a glance, a clear connection between corruption and the reform processes in the states of the former Soviet Union (FSU). The key to untangling this issue is to look at the peculiarities of their transition strategies and economic crisis compared with those of Central and East European countries. This paper aims to unravel the complex ties between the transition process and corruption in the FSU states through theoretical and empirical analyses of the impact of multiple factors. These factors include the extent of decentralization of the government–enterprise relationship and the degree of state intervention in corporate management as well as the impact of economic distress that have been affecting the frequency and degree of corporate exploitation and state capture. In this manner, our study aims to complement earlier achievements in this field.     

Neoclassical and structural analysis of poverty: winning the ‘Economic Kingdom’ for the poor in Southern Africa

In situations characterised by historical injustice in the distribution of economic resources, such as in many southern African ‘settler’ countries, there is a powerful intuitive case that ameliorative and palliative public policy is insufficient to significantly affect poverty reduction. This is because of the dulling effects on growth caused by significant structural inequality in the distribution of resources. However, the proposition that inequality is a problem for poverty reduction is contentious. This article reviews the neoclassical and structuralist literatures on the relationship between growth, inequality and poverty. It argues that the first is inconclusive and, furthermore, can only be so, while the second requires to be made more relevant to the discussions of how redistribution and inequality relate in legitimate policy and practice. The concept of property regimes can help here, within a more contextual understanding of development in practice as not necessarily involving growth and economic progress, but as being subject to periodic phases of ‘de‐development’, or well‐being retrogression. The paper concludes that state‐sponsored redistribution policy has an important role to play in changing underlying property regimes for the benefit of the poor in southern Africa. Inequality does matter, and a consideration of radical, redistributive social change is worth rehabilitating as an efficient means of reducing poverty, particularly in situations of low or fluctuating growth. This consideration, in turn, requires a political acceptance of the legitimacy of a broader role for economic public policy and state action.     

Intra-provincial fiscal decentralization,relative wealth,and healthcare efficiency: Empirical evidence from China

Decentralizing fiscal power to locally elected governments is often regarded as beneficial for public service efficiency. However, questions remain about whether decentralizing fiscal responsibilities work well in countries lacking political decentralization. In China, fiscal decentralization has significantly strengthened the role of local governments in the provision of healthcare services, but evidence of its efficiency effects is scarce. To cast light on this issue, this study investigates the relationship between intra-provincial fiscal decentralization and the productive efficiency of healthcare services in China. Analysis of panel data for 2006–2017 suggests that expenditure and revenue decentralization from provincial to sub-provincial governments significantly improves healthcare efficiency. Further analysis suggests that the positive impact of healthcare expenditure decentralization on healthcare efficiency may be stronger in wealthier provinces. These findings have important theoretical and practical implications.     

Pitfalls of power to the people: Decentralization,local government performance,and system support in Bolivia

Across the developing world, many governments have implemented political reforms—heavily promoted by international donors—designed to transfer greater power to subnational levels of government and to provide a more substantial policymaking and oversight role to citizens. Although economic analyses have frequently argued that such decentralization programs improve the efficiency of public expenditures, far less is known about their political impact. Based on an analysis of two large national public-opinion surveys from Bolivia, a country that has recently implemented one of the most comprehensive decentralization reforms yet attempted in Latin America, we analyze the role decentralized local institutions are playing in shaping citizen attitudes toward their political system. Our findings support the contention that decentralization can bolster citizen levels of system support at the national level. Equally important, however, we also demonstrate that the renewed emphasis on local government can have the opposite effect of producingmore negative views of the political system when the performance of local institutions falters. Jonathan T. Hiskey is assistant professor of political science at the Univeristy of California, Riverside. His most recent research focuses on subnational processes of political and economic development taking place across Latin America. Mitchell A. Seligson is Daniel H. Wallace Professor of Political Science, research professor of international studies, and professor in the Graduate School of Public and International Affairs at the University of Pittsburgh. His research centers on surveys of democratic values and behaviors in Latin America.     

Toward Evaluating the Effectiveness of Regional Partnerships for Economic Development in U.S. Metropolitan Areas

During the past few decades, there has been a dramatic increase in the number of regional partnerships in the United States to enhance economic development across local government jurisdictions. This trend has been mirrored by an increase in regional organizations in Europe, Asia and South America to enhance economic development, usually across national boundaries. While the literature has examined the formation, structure and activities of regional partnerships for economic development in the United States, this is the first study that attempts to measure their effectiveness across a large number of geographical areas using quantitative methods. The findings provide some evidence of their effectiveness in that there is a positive and significant relationship between regional partnerships and employment; the relationship between regional partnerships and income is positive but insignificant. This study may be informative in the further study of regional economic development organizations in other countries as well as regional partnerships and organizations in other policy arenas.     

Conceptualizing and Measuring Ethnic Politics: An Institutional Complement to Demographic, Behavioral, and Cognitive Approaches

The influence of ??ethnic politics?? has been demonstrated in a range of empirical studies of economic growth, violence, and public goods provision. While others have raised concerns about the measurement of ethnic variables in these works, we seek to situate such discussions within a more thoroughgoing conceptual analysis. Specifically, we argue that four conceptual approaches??demographic, cognitive, behavioral, and institutional??have been used to develop theories in which the mechanism that relates causes to outcomes is ethnic political competition. Within this literature, we believe that institutional approaches have been relatively under-appreciated, and we attempt to address that imbalance. We begin by critically reviewing the three main ways in which ethnic variables have been specified and operationalized, delineating the assumptions and trade-offs underlying their use. Next, we describe an institutional approach to the study of ethnic politics, which focuses on the rules and procedures for differentiating ethnic categories. We propose some new indices based on this latter approach that might be developed and used in future research. Subsequently, we analyze the relationship between each of these approaches and patterns of ethnic political competition in a set of six country cases, highlighting their strengths and weaknesses, as well as theoretical links between them.     

Inequality and Economic Growth: The Empirical Relationship Reconsidered in the Light of Comparable Data

Almost all the recent empirical work on the relationship between income inequality and economic growth has used inequality data that are not consistently measured. This article argues that this is inappropriate and shows that the significant negative correlation often found between income inequality and growth across countries may not be robust when income inequality is measured in a consistent manner. However, evidence is found of a significant negative correlation between consistently measured inequality of expenditure data and economic growth for a sample of developing countries.     

GOVERNANCE AND ECONOMIC DEVELOPMENT: CHANGES AND CHALLENGES

This paper examines the issue of governance in the process of economic development. The paper first provides a literature review on the various arguments regarding the role of government in promoting economic development and the major issues emphasized in recent government reform projects. The paper then focuses on three major policy changes and reforms that are related to the area of governance and economic development: (1) regulatory reform, (2) privatization policy, and (3) decentralization policy. The paper concludes with discussions about the continuing arguments about the role of government, the increasing importance of local governments, and the contribution of nongovernmental or nonprofit organizations in economic development.     

State and local finance in a command economy: the case of the soviet union

Two aspects of Western public finance, the economic theory of federalism and public choice theory, have insights that, if adopted in the Soviet Union, could help improve its resource allocation to permit economic growth, mitigate the problems it has with its minorities, and aid the transition away from a centralized, Communist-Party-dominated State and society. The economic reforms proposed by Chairman Mikhail Gorbachev are briefly summarized and criticized in the context of a summary discussion of governmental decisionmaking in the Soviet Union. Lessons are identified from the U.S. historical experience that suggest certain steps to improve local government as necessary preconditions for improving Soviet economic efficiency. These are free local elections, a free local press, an independent judiciary with real authority to protect the integrity of the press and local elections, real decentralization of political power to the regions, steps toward equalization of fiscal capacity among the regions, increased citizen mobility, and adoption of actions to provide incentives for Western investment in local government capital formation. This last precondition requires a convertible currency. (To achieve a convertable currency may require other economic and political changes that are beyond the scope of this paper.) Aspects of the paper rely on information publically available through mid-1989.     

Poverty and Survival

A recent literature highlights the uncertainty concerning whether economic growth has any causal protective effect on health and survival. But equal rates of growth often deliver unequal rates of poverty reduction and absolute deprivation is more clearly relevant. Using state-level panel data for India, we contribute the first estimates of the impact of changes in poverty on infant survival. We identify a significant within-state relationship which persists conditional upon state income, indicating the size of survival gains from redistribution in favour of households below the poverty line. The poverty elasticity declines over time after 1981. It is invariant to controlling for income inequality but diminished upon controlling for education, fertility and state health expenditure, and eliminated once we introduce controls for omitted trends.