Decentralization and democratic governance : a review of Latin American experience and lessons for sub-Saharan Africa

This paper reviews efforts of A.I.D."s Office of Housing and Urban Programs and the Urban Institute to decentralize and democratize the delivery of public services in Latin America, long dominated by unchecked and unresponsive parastatals. Reviewed specifically are community infrastructure projects in Honduras, the privatization of public services in Chile, and the creation and operation of private economic development associations in El Alto, Bolivia, and Inner Kingston, Jamaica. The applicability of democratization programs to Sub- Saharan Africa, where the role of public service parastatals has been even greater, is briefly assessed. The review shows that local democratic choice is critical to the experience of democratic governance and both local governments and grassroots organizations play important roles in this regard. Most democratization programs, it is concluded, will require assistance on three levels: to build local processes for expressing choice or collective demand about public services; to support reforms in central-local and inner-municipal relations; and to increase local government officials" skills in the procedures of democratic governance. However, the high costs of decentralization and democratization programs require careful targeting of resources, both by country, and within countries, to local governments or organizations with the greatest potential. The most promising strategy appears to be one that focuses on a handful of communities, while also reforming central-local relations. A certain level of resources should be reserved for a second phase in which the program can be spread to other communities which aggressively pursue participation.