Democratic Decentralisation and Poverty Reduction: Exploring the Linkages

Abstract

The main aim of this article is to explore certain conditions under which a particular form of decentralisation—defined as democratic decentralisation—will positively affect poverty reduction. This is done through a review of the international literature on the subject—presented in a conceptual framework for understanding such linkages. Democratic decentralisation is often perceived as a necessary precondition for poverty reduction in developing countries. But little convincing evidence has been found of such a direct connection. The process has not (yet) emerged as a pro-poor programme. Relatively successful cases across countries in Africa, Asia and Latin America are compared, in order to identify preconditions for enabling more pro-poor processes. Such enabling conditions relate to central government commitment; bureaucratic capacity to reform; democratic basis of political parties; capability of local leaders and elites; and capacity of communities and civil society. The Scandinavian experiment is used as an illustration of the way in which democratic decentralisation, in a particular context of political struggles and compromise, emerged ‘from below’ and helped reduce poverty for the majority of the country's population. Important parallels are highlighted, between the evolutionary processes in Scandinavia and changes in social formations and political transformation in developing countries.

Keywords:

• democratic decentralisation
• democracy
• poverty reduction
• local government