Strategies for Economic Development under Decentralization: A Transformation of the Political Economy
Author(s)
Shin, Roy
Abstract
There have been many debates in recent years about the role of the government in economic development. Studies of many developing countries suggest that government intervention in the economic marketplace is costly and inefficient, and recommend that “deregulation” or “privatization” should be used to enhance the efficiency of resource allocation. Nonetheless, the governments in many developing countries remain important in providing and producing many services. They continue to have significant impact on the economy and the daily life of the public despite reform of privatization. This study looks at some of the policy rationales that developing countries may consider in assessing what responsibilities and roles the central and subnational governments should assume in fostering local economic development
