Descentralización y Gobiernos Subnacionales: Calidad de los servicios

This paper estimates the economic effects of a recent reform that simplified business entry regulation in Mexico. The reform was introduced in different municipalities at different points in time. Using microlevel data, I find that the reform increased the number of registered businesses by 5%. This increase was due to former wage earners' opening businesses. Former unregistered business owners were not more likely to register their business after the reform. The reform also increased wage employment by 2.2%. Finally, the results imply that the competition from new entrants decreased the income of incumbent businesses by 3%.

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.

Political reservation for disadvantaged groups is believed to be a way of improving targeting of publicly provided goods to those groups. This paper examines the impact of political reservations for women and scheduled castes and tribe (SC/ST) candidates in local governments in West Bengal, India between 1998-2004 on targeting to landless, low caste and female-headed households. It differs from existing literature by differences in geographic coverage, time span, and use of self-reported household benefits across a broad range of programs. Reservation of chief executive (pradhan) positions in local government for women was associated with a significant worsening of within-village targeting to SC/ST households, and no improvement on any other dimension of targeting. Reservation of pradhan posts for SC/ST members was associated with a significant increase in benefits received by the village as a whole, improvement in intra-village targeting to female-headed households, and to the group (SC or ST) of the pradhan. The effects of women's reservations are not consistent with simple citizen-candidate or elite capture models of electoral politics. They are consistent with a more complex hypothesis of capture-cum-clientelism which is weakened by election of politically inexperienced women to reserved pradhan posts.

This paper examines the effects of party control of state governments on the distribution of intergovernmental transfers across counties from 1957 to 1997. We find that the governing parties skew the distribution of funds in favor of areas that provide them with the strongest electoral support. This is borne out in two ways. (i) Counties that traditionally give the highest vote share to the governing party receive larger shares of state transfers to local governments. (ii) When control of the state government changes, the distribution of funds shifts in the direction of the new governing party. We find only weak evidence that parties reward electorally pivotal counties or counties in electorally pivotal legislative districts. Finally, we find that increased spending in a county increases voter turnout in subsequent elections. This suggests that parties have an electoral incentive to skew the distribution of funds to influence future election results, and the mechanism through which this works is “mobilization” rather than “conversion” of voters in a fixed electorate.

This book was first published in 2005. Poverty and Life Expectancy is a multidisciplinary study that reconstructs Jamaica's rise from low to high life expectancy and explains how that was achieved. Jamaica is one of the small number of countries that have attained a life expectancy nearly matching the rich lands, despite having a much lower level of per capita income. Why this is so is the Jamaica paradox. This book provides an answer, surveying possible explanations of Jamaica's rapid gains in life expectancy. The rich countries could invest large sums in reducing mortality, but Jamaica and other low-income countries had to find inexpensive means of doing so. Jamaica's approach especially emphasized that schoolchildren and their parents master lessons about how to manage disease hazards. This book also argues that low-income countries with high life expectancy, such as Jamaica, provide more realistic models as to how other poor countries where life expectancy remains low can improve survival.

The Peruvian Social Fund (FONCODES) was created by President Alberto Fujimori in 1991 with the stated objectives of generating employment, alleviating poverty, and improving access to social services. This article uses province-level data on monthly expenditures, socioeconomic indicators, and electoral outcomes to analyze political influences on the timing and geographic distribution of FONCODES expenditures between 1991 and 1995. I reach three main conclusions. First, these expenditures increased significantly before national elections. Second, FONCODES projects were directed at provinces in which the marginal political effect of expenditures was likely to be largest. Third, these projects favored the poorest provinces, which suggests that the program also had a redistributive function. The results are robust to a large number of specifications and controls. The Peruvian data support predictions made in the literature on political business cycles as well as the literature on political influences on the allocation of discretionary funds.