Decentralization and Political Accountability: Lessons from Subnational Governance Reforms

Abstract

Decentralisation has emerged as one of the key governance reforms to enhance political accountability, citizen involvement and move public decision towards local communities. The aim of this research paper is to explore the impact that transfers of political, administrative and fiscal powers from the central government to subnational governments have on their accountability and governance performance, “Decentralization and Political Accountability: Lessons from Subnational Governance Reforms.” The study is centered on the institutional processes and arrangements that can enhance responsiveness, transparency, participation and oversight at regional and local level when decentralising. It also takes account of the potential risks that could undermine these results, such as lack of fiscal autonomy, overlapping institutional jurisdictions, weak administrative capacity, elite capture, political patronage, weak monitoring systems, and inequities in the fiscal resources of subnational governments. Based on secondary literature, comparative evidence, policy reports and scholarly work on subnational governance reforms, the paper is qualitative and analytical and explores the link between decentralisation and political accountability. The findings from the analysis indicate that the effect of decentralization on accountability in governance is dependent on the design of intergovernmental relations, having clear jurisdictions, access to financial resources, institutional capacity, transparency mechanisms, and meaningful citizen involvement. The paper also emphasizes the need to increase the capacity of local institutions, social accountability mechanisms, public access to information, participatory decision making and independent oversight. The study finds that a good decentralization can generate greater accountability between citizens and public authorities, while a poorly coordinated decentralization can generate the same inequalities and reduce the efficiency of the institutions. The results offer valuable policy lessons for the design of subnational governance reform that is more transparent, responsive, inclusive, and accountable to the people.