ABSTRACT
One of the central questions in development economics is why some countries have remained poor for a long period of time, even though the general policy approaches to combat poverty are well understood by policymakers around the world. A corollary to the above question is why a similar package of policies differs in efficacy across countries. Similarly, an identical set of policies differs in effectiveness across provinces or states within a country. 1 Drawing on the Post-Washington Consensus, it may be argued that the inability to achieve similar results from policy packages across states is due to the constraints posed by country-specific institutional or political factors. One of the major institutional factors directly involved in the delivery of public services and in implementing development policies is the degree of decentralization. Therefore, a key to enhancing the efficacy of policies lies in a better understanding of the extent and process through which various forms of decentralization contribute to development.
