EXECUTIVE SUMMARY
mogeneous; in the low- and lower-middleincome countries of the region, most local governments still have difficulties managing basic services. In many countries, national public utilities continue to provide some key services. In large countries, like Brazil, there are wide differences in provision and intermediate governments play a significant role.
reforms are underway but local governments have neither the powers nor the resources to assume their responsibilities. South Africa is an exception; it has made significant progress thanks to constitutionally-entrenched powers for local government and increased collaboration between the central government and empowered local governments, particularly in major cities.
In the second group, there has been little or no progress in decentralization or service provision. This includes much of Eurasia, where local governments are responsible for the provision of basic services but lack sufficient authority or resources to cover operational activities or deal with the consequences of a decade of infrastructure deterioration. Powers and responsibilities are unstable and higher levels of government continue to exert significant control. Particular problems include national tariff policies that do not reflect the increasing cost of basic services and the weak authority of local governments over taxation and tariffs.
The fourth category includes much of North Africa, where central governments still exercise strong control over basic services, despite the presence of local elected authorities. In Morocco, local governments are more active. Data show improvements in access to basic services in North Africa, but investment is concentrated in coastal areas, leaving intermediate interior cities and other areas under-equipped (arguably a factor in recent popular uprisings in the region). In the Middle East, elected local governments (where they exist) also act under tight central government control, although there have been efforts to promote local management of solid waste and regulation of urban transport. An exception is Turkey, where decentralization has increased local government responsibilities and resources for service provision.
Cutting across these two groups are middle-income countries in Asia, where decentralization reforms have been implemented over the last two decades. Progress in service delivery in wealthier urban areas is accompanied by backlogs in intermediate cities and towns. In India, where decentralization is generally stuck at state level, variations are even wider. In China, local governments in large cities have been granted authority to develop and modernize basic infrastructure over the last twenty years; but the situation with regard to basic services is less positive in smaller urban centres and rural areas. Across the region, particularly in India, poor access for slum-dwellers (one third of the population, 396 million people) is the critical issue. In the third group are most countries in Sub-Saharan Africa. Here, decentralization
While this simplified typology does not account for all cases, it suggests a significant link between governance, decentralization and improvements in the provision of basic services. A strategic choice management models
between
Organizing authorities have a range of possible management choices for basic services: direct management; contracting a public provider or outsourcing to a private enterprise; and partnership with NGOs or community organizations. Total privatization (divestiture) is rare. The complexities of