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Does decentralization increase responsiveness to local needs?: evidence from Bolivia

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Bolivia’s recent decentralization involved the creation of hundreds of new municipalities, devolution of substantial resources from central agencies to local governments, and the development of innovative institutions of local governance. Detailed study of investment sector-by-sector shows that objective indicators of need are the most important determinants of the changes in investment patterns that ensued throughout the country.

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en

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application/pdf

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http://eprints.lse.ac.uk/477/1/WP-2516.pdf

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