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Is decentralisation good for development? This book explains when the answer is 'Yes' and when it is 'No'. It shows how decentralisation can be designed to drive development forward, and focuses on the institutional incentives that can strengthen democracy, boost economies, and improve public sector performance.

Bolivia decentralised in an effort to deepen democracy, improve public services, and make government more accountable. Unlike many countries, Bolivia succeeded. Why? Jean-Paul Faguet combines broad econometric data with deep qualitative evidence to investigate the social underpinnings of governance. He shows how the interaction of civic groups and business interests determines the quality of local decision making.

Faguet identifies the factors that determine the outcomes of national decentralization on the local level