Localizing Development:

The Local Public Sectors Role in Achieving

Development Outcomes in Health and Education

Ben Edwards (bedwards@urban.org)
The Urban Institute

New York September 15, 2014
Development partners have lately focused
considerable attention on local
governments. Why?
Increasing focus on local governance
Opening competitive political space Vertical balance of power
Enhanced political participation Increased accountability
But also, growing recognition that
development takes place at the local level
!
Development takes place at the
local level
Public services are delivered by local
institutions:
Schools, local clinics, agricultural extension
centers, water access points, roads, street lights,
business licenses, police and fire protection
Almost all public services envisioned by the
post-2015 agenda will be delivered at the
local level
#
Does government structure matter?
Not clear whether organization of public
sector matters
Few cross-country studies
Cross-country studies lack the tools needed
to measure the impact of different
intergovernmental structures
$
The Local Public Sector
Research methodology

%
Caveats
Limited number of observations; cross-country
nature of data set; incomplete nature of data
Main ambition: to contextualize local government
spending vs. other local spending
Presentation of results focuses on expenditures,
but variables were collected dealing with political,
administrative, fiscal mechanisms at local levels
Progress on data collection:
24 Country Profiles/Surveys so far
&'() * '+,-./0 (,/120 345 6/24.2/ 72.4895 +- 3249.3 4-7 27,:4;+- 2<=2-78.,/25
COLLECTED :
Albania (CS)
Bangladesh
Benin (CS)
Bolivia (CS)
Brazil
Burkina Faso (CS)
Burundi (CS)
Cambodia
Ethiopia (CS)
Ghana (CS)
Guatemala (CS)
Indonesia
ONGOING (CS):
Botswana
Kenya
Namibia
Vietnam
Zambia
Senegal
Niger
Lesotho (CS)
Macedonia (CS)
Mali (CS)
Mauritania (CS)
Mozambique
Nepal
Nigeria
Peru (CS)
Sierra Leone
South Africa
Tanzania
Uganda (CS)


Country Survey Example: Spending
(Peru)
>?
Observations about the collection of
Country Surveys
Data availability
Challenges of a learning a new approach
Sector experts understand finances, but
may be unfamiliar with governance
constraints
Preliminary research results
Example: vertical health
expenditure profiles
Example: vertical education
expenditure profiles
>#
Preliminary results for
education sector spending
>$
Preliminary results for
health sector spending
>@
Preliminary regression results (health)
>%
Preliminary regression results
(education)
>A
Preliminary conclusions
Past research has underestimated the size of the
local public sector by 60-70%
More localized spending appears to be better
Health and education have distinct sectoral
expenditure patterns
Most localized spending in health and education
does not flow through local governments
Impact of localized spending likely muted by
weak local discretion and accountability
>B
Measure what you treasure: expand global
benchmarking
Local governments are not the only players at the
local level
Expand advocacy for engaging the local level:
Role of local and international LGAs
Sector-specific research on the role of the local level
Experience-sharing on how to engage sectors
Implications
C?
Shift the dialogue on localization from the global
level to the country-level
Strengthen capacity of country-level DLG Community of
Practice (researchers, consultants, policymakers)
Engage in dialogues with sectors
Inform the policy debate with detailed, country-driven LPS
Country Studies on the localization of health and
education
Next steps:
Expanding the dialogue
THANK YOU!

WWW.LOCALPUBLICSECTOR.ORG
Questions? Comments?
Discussion?