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7 - Vertical and Horizontal Decentralisation for Equity and Stability

from Part II - Policies and Institutions for Social Cohesion

Published online by Cambridge University Press:  05 August 2019

By
Gustav Ranis
Edited by
Hiroyuki Hino ,
Arnim Langer ,
John Lonsdale  and
Frances Stewart
Hiroyuki Hino
Affiliation:
Duke University, North Carolina and the University of Cape Town
Arnim Langer
Affiliation:
Katholieke Universiteit Leuven, Belgium
John Lonsdale
Affiliation:
University of Cambridge
Frances Stewart
Affiliation:
University of Oxford
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Summary

This chapter considers the role of decentralization in multiethnic societies. It distinguishes between vertical decentralization, in which powers are handed down from the central government to local authorities, and horizontal decentralization, in which powers at the centre are diffused among different Ministries and different arms of government, including extending democratic checks on government action. It is argued that both types of decentralization can lead to more inclusive governments and more peaceful societies, as well as improving efficiency and possibly reducing corruption. The chapter reviews the examples of Kenya, Uganda and Indonesia. In each case, both types of decentralization have increased in recent years, albeit with some retreat in the case of Indonesia. There have been some positive results, but the process has also shown problems of service quality, local level resource deficiency and continued high levels of corruption. The chapter concludes that successful vertical decentralization needs to be accompanied by a process of horizontal decentralization that can provide guidance and accountability to decision makers at all levels. Over time, the magnitude of local taxes needs to be increased relative to central grants following the pattern in more developed countries.

Keywords

DecentralizationDemocracyCentral governmentLocal government
Type
Chapter
Information
From Divided Pasts to Cohesive Futures
Reflections on Africa
 , pp. 223 - 245
Publisher: Cambridge University Press
Print publication year: 2019

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