How-to Note : A Framework to Assess Administrative Decentralization

Local governments need to be endowed with administrative autonomy to be able to respond to local needs effectively. The purpose of this note is to clarify components of a well-designed administrative decentralization system and to assist task teams and stakeholders to assess administrative decentralization effort in any given country. There are two main components of an administrative decentralization system: discretion allowed to the local government to direct the business of the local government, and mechanisms to hold the local government accountable for appropriate use of this discretion. The objective of this note is to explain the importance of each of these components. The note also illustrates how these components should be put into practice. Challenges and good practices in implementations in various developing countries are highlighted. The review of study countries shows that local governments in the Philippines and Kerala have the authority to engage in all kinds of procurement contracts.