ABSTRACT
Many developing countries have implemented decentralisation reforms to strengthen local governments and bring the state closer to people and ensure greater accountability of the state in the delivery of services to its citizens. The literature on welfare economics assumes that politicians are driven by public interest concerns, and hence several contributions treat each level of government as a benevolent social planner, maximising the welfare of the residents of its jurisdiction. The preferences of politicians are basically centred on re-election concerns, driven by median-voter demands and competition with other parties. The complex way in which functional and fiscal decentralisation has evolved has had a direct impact on district decision-making and resource allocation. Politicians usually prefer equal distribution of allocated funds along constituency lines rather than the needs-based evidence and technical criteria prioritised by officers. A large number of decisions regarding infrastructural development at district level appear to be reactive and ad hoc.
