Introduction and Contents:

This contribution represents a distillation of findings from a large number of empirical studies of democratic decentralization in over 60 countries. It assesses the promise and limitations of decentralization at enhancing the influence of ordinary people over development policy and its implementation, in ways that make both development and their livelihoods more sustainable. The evidence demonstrates that three things are essential to the success of decentralization. Elected bodies at lower levels must have adequate funds. They must have adequate powers. And reliable mechanisms must exist to ensure two kinds of accountability: the accountability of elected representatives to citizens, and the accountability of bureaucrats at lower levels to elected representatives.

Governance: When these essentials are in place, decentralization can mightily enhance the transparency, responsiveness and accountability of government for people at the local level. It makes government far more open to their influence, and it greatly enhances the flow of information between government and ordinary folk - in both directions. It has at least limited promise at reducing corruption and absenteeism by local-level government employees. It can greatly ease political alienation and foster a belief in the legitimacy of government and its development programmes.

Society: Decentralization cannot be expected to produce social transformation, although the political and policy processes can be substantially transformed by it. It greatly increases political participation, and tends strongly to strengthen both civil society and social capital. It catalyses but also moderates conflict, and tends to break down cynicism within society about government.

Development: Decentralization enhances the uptake on and thus the impact of health, education and environmental progammes. It does so partly by making it possible to adapt such programmes to local conditions and preferences. It also provides a framework that facilitates 'scaling up' - that is, replicating developmental successes from one local arena in many others. It has only limited utility in alleviating poverty (in many but not all contexts), and in promoting economic growth and mobilizing local financial resources. But by opening the policy and political processes to ordinary people, it can do much to enhance their well being and to make their livelihoods and development more sustainable.