How Important is the Capacity of Local Governments for Improvements in Welfare? Evidence from Decentralised Uganda

Decentralisation is often claimed to be effective for improvements in welfare and hence the reduction of poverty but empirical evidence is scarce. This paper seeks to gain further insights into the relationship between decentralisation and welfare by investigating the role of local governments' capacity for household consumption and school enrolment in Uganda. Using household survey data, it finds suggestive evidence that both household consumption and school enrolment are positively related with the level of capacity of district governments.