ABSTRACT

This chapter argues that sector decentralization is critically important for the overall assessment of decentralization reforms. It discusses the emerging practices of functional assignment in Asia and finds that such exercises help to delineate sector responsibilities between levels of government. While the empirical evidence on sector decentralization is often inconclusive, there are also numerous studies confirming positive outcomes of decentralization reforms in sectors such as health and education. Inconsistencies in reform implementation often contribute to the lack of positive outcomes.