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How to make decentralization work? Evidence from a capacity-building intervention in local governance

Kartika Bhatia*, Margaret Leighton*

*Corresponding author for this work

Research output: Working paper

Abstract

In recent decades many countries have sought to decentralize the provision of public goods and services, and to some extent also the collection of government revenues. While local governments usually have more information on local needs, they typically have less capacity than higher-level governments and may be prone to elite capture. In this paper we evaluate the impact of a capacity-building training for Panchayat (village) staff in rural India to build skills for the Gram Panchayat Development Plan, a formal planning document drawn up on an annual basis. We do not find that the intervention affected the amount of funds requested in these plans; however, we find some evidence of a shift in focus towards social sector expenditure.
Original languageEnglish
Place of PublicationSt Andrews
PublisherUniversity of St Andrews
Number of pages38
Publication statusPublished - 30 Nov 2022

Publication series

NameSchool of Economics and Finance Discussion Paper
PublisherUniversity of St Andrews
No.2206

Keywords

  • Fiscal federalism
  • Public goods
  • Village fiscal planning
  • Intervention
  • Gram Panchayat Development Plan

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