Devolution is not always a panacea for economic growth as it has some drawbacks in relation to local governance and economic development. It is unclear that there is a general link between devolution of government and the development of more 'pro-poor' policies or poverty reduction in every decentralization programme. The paper is to examine mainly about the role of central governments and other actors for local governance. In a number of developing countries, decentralisation might lead to bad governance and a number of conditions for corruption. A solution also would be pointed out that central governments should play a crucial role in ensuring local governance and implementing significant pro-poor policies. Additionally, some outsiders such as NGOs can help local communities in order to deal with bad governance in localities and the IMF, the World Bank, and the WTO might lessen poverty and inequality through the microcredit projects.
Abstract
Ⅰ. Introduction
Ⅱ. A Brief Overview of Decentralisation's Impacts
Ⅲ. Decentralisation and local governance
Ⅳ. Decentralisation and economic development in municipalities
Ⅴ. Conclusion
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