Beyond Efficiency and Economy: An Examination of Basic Needs and Fiscal Decentralization
Author(s)
Lindaman, Kara; Thurmaier, Kurt
Abstract
Decentralization advocates state that localized service delivery and the involvement of beneficiaries in planning and decision making at the local level can be used to gain larger shares of public services for the poorest groups in society. This article contributes to the discussion of both basic-needs programs and decentralization efforts by providing empirical evidence that supports the premise that fiscal decentralization contributes to the attainment of basic-needs objectives. The results from regressions of the human development index (HDI) on measures of fiscal decentralization suggest that fiscal decentralization is helpful for attaining healthier and better-educated populations. The next section discusses the role of participation in the basic-needs and decentralization theories. The model and data are then presented, followed by a discussion of the regression results and some conclusions concerning the ability of developing countries to meet basic-needs objectives in conjunction with fiscal decentralization.
