Abstract
Decentralization is an important principle in Israel's national program for social and physical regeneration of distressed neighborhoods. Evaluation of the results indicates that decentralization has been achieved, but in a manner wrought with compromises. However, when we assess it against Israels entrenched tradition of highly centralized decision making, we regard decentralization in Project Renewal as a qualified success. To make the lessons of Project Renewal useful, I identify factors that have contributed to success or failure, using the theoretical perspective of implementation analysis. While the inhibiting factors are generally familiar from the literature on implementation, some supportive factors are unique to Project Renewal and account for its relative success. Those factors include promotion of innovation through a major footloose agency, a pipeline for transfer of technologies from other countries, availability of a “policy shelter” during the project's formative stages, long-term commitment by the leadership, and minimization of perceived threat to existing personnel.