Through a variety
of lending instruments, client countries receive financial and technical
assistance to decentralize fiscally, politically and administratively
to subnational levels of government. In most cases, the goal is to improve
service delivery and build capacity by devolving service delivery functions
to the lowest level of government where the benefits lie, in turn making
locally elected officials accountable and transparent to the people.
Decentralization can not only lead to better local services, but may
improve citizen participation, develop local capacity and increase revenue.
In order to achieve effective decentralization, the World Bank will
collaborate with central and local governments to develop an intergovernmental
fiscal framework, appropriate to the country context.
page of this website highlights the Bank’s major decentralization
and subnational loans between 1991 and 2003. The portfolio is broken
down by region with links to various project appraisal documents (PAD),
implementation completion reports (ICR), President’s reports and
other related materials. The PAD provides a rationale for the proposed
investment operation and gives an assessment of the various aspects
of the operation, flagging issues of concern to the Bank. The ICR is
required for all lending operations and is one way in which the Bank
supports knowledge sharing and accountability within Bank projects.
The graph below depicts projects between 1997 and 2002 containing major
of Projects with Decentralization
Components in World Bank Lending
Fiscal Years 1997-2002
Source: The World Bank Business
Warehouse database. Data from February 2003.