Decentralization and poverty alleviation. International experience and the case of the Philippines

Abstract

In recent years, decentralization has become quite common in developing countries. The essence of decentralization is that it does not occur in general but rather in a particular context, so that decentralization takes many different forms in different countries at different times. Comparative analysis is often illuminating and the article uses it to cast some light on the current moves towards decentralization in the Philippines. Section 2 provides a quantitative overview of the relationship between decentralization and poverty across a number of Asian and Latin American countries. Section 3 discusses key aspects of the relationship between decentralization and poverty alleviation in the Philippines, drawing on a number of decentralization experiences in countries such as Argentina, Chile, Colombia, Indonesia and Vietnam. Section 3.1 focuses on local capacity and Section 3.2 on local financial resources, in particular the role of fiscal transfers. Section 3.3 examines the effects of different approaches to decentralization on the targeting and delivery of poverty-related services—health, primary education, housing and infrastructure. Section 4 concludes by noting the importance of migration in any treatment of decentralization and poverty. Copyright © 1999 John Wiley & Sons, Ltd.