Abstract

In recent years the topic of decentralisation has received great attention. The increased interest is not only because of its theoretical appeal, but it is related to the rising number of countries adopting a more decentralised system. The widespread economic liberalization along with political change towards openness and democracy is one of the driving forces. In transition economies, including the transition countries in Europe and Central Asia (ECA)2 such trend was largely driven by the limited administrative and financial capacity of the center, while in some other regions the policy shift may be prompted by the collapse and erosion of central control. However, decentralization is not about weakening central authority. The important goal is to make the local government more responsive to the needs of local population. Most discussions about decentralisation accordingly center on attempts to improve the delivery of services. The countries in ECA region started the transition process with wholesale restructuring of their political systems. The discontent with welfare state institutions and the challenges that globalization processes triggered have modified the professional discourses on state, governance and democracy. The need for decentralization and devolution of power from central to local authorities has become one of the priorities in changing the state in these countries. The devolution of power necessarily intervenes with service delivery responsibilities, public finances arrangements, rebuilding central state capacities and institutions. While reasons for decentralization in the region vary, decentralization reform has been one of prevailing common prescriptions for addressing a wide range of other issues, including economic inefficiencies, macroeconomic instability, governance deficiencies, and poor delivery of public services. Interrogating some of the basic definitions on decentralization, decentralized governance and good governance and their significance for the ECA region, this paper focuses on the recent decentralization efforts made by the transition countries in ECA, concentrated around the implementation of the current decentralization agenda. It further explains why there are different approaches on the decentralization processes in these countries. At the same time, it recognizes that the decentralization everywhere is considered as a necessary mechanism to address a number of critical issues, including delivery of services. The section on legal, institutional capacities and financial resources at local level, attempts to underline the problem of limited capabilities that exists in local governments in these countries. The paper also addresses the importance of accountability and community empowerment in enhancing and improving service delivery. It suggests establishment of institutions and mechanisms to promote accountability in order to control government’s abuses and increase governments’ responsibility. Recognizing the predominant role of the public sector in delivery of services in ECA countries, the paper also explores the potential of different forms of public-private partnership, as well as the role of the civil sector in providing service delivery. Finally, while some of the challenges these countries are facing with in improving their governance systems are addressed in the concluding remarks (e.g. the fight against corruption), they are not further elaborated in this paper.

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