1. EXECUTIVE PUBLIC POLICY TRAINING PROGRAM
FOR VIETNAMESE GOVERNMENT OFFICIALS
Comparative Public Policies in Perspective:
Decentralized Service Delivery
Kyoko Kuwajima
JICA Senior Fellow
Lee Kuan Yew School of Public Policy
National University of Singapore
1

2. Outline for today
1. Definition and Concept of Decentralization
2. Common but Diversified Decentralization –
Cases of East Asian Countries
3. Long-term Process of Decentralization–
Case of Japan
2

3. 1. Definition and Concept of
Decentralization
• Decentralization = the transfer of power from
central government to lower levels of
government, including responsibility for
planning and management of various
government functions, as well as resourceraising and resource allocation.
Administrative Decentralization
Political Decentralization
Fiscal Decentralization

4. Types of Decentralization (1)
Administrative Decentralization
• Deconcentration = the transfer of authority and
responsibility to central government officials
such as governors or district officers, and
officials located at local branches of central
ministries
• Delegation = the transfer of authority and
responsibility from central government to
subnational governments or specified agencies

5. Types of Decentralization (2)
Political Decentralization
• Devolution = the transfer of functions or
authority from central government to subnational
governments that are governed by locally
elected representatives.
Fiscal Decentralization
• Financing mechanisms that underpin all
forms of decentralization = the transfer of
funds, and sometimes revenue-raising powers
from central government to subnational
governments
5

6. 2. Common but Diversified Experience - East
Asian Countries
General Trend of Decentralization
•
•
•
•
Philippines 1991Indonesia 1999Vietnam (1996- ) 2004Thailand 1997-
Fast Starters: Philippines and Indonesia
Incrementalists: China and Vietnam
Cautious Mover: Thailand and Cambodia
(World Bank (2005) East Asia Decentralizes)
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7. Diversities of
Vertical Organization
Country
Levels of Subnational Governments
Indonesia
3
Philippines
4
China
Vietnam
4
3
Cambodia
2
Thailand
( 3)
Provinces (33), Special Regions (2) & Capital;
Local Governments: Cities and Districts (440);
Villages
Provinces (79); Cities (112); Municipalities
(1496); Villages (41944)
Provinces(20) and Municipalities (4);
Provinces(58) and Municipalities(5); Districts
(599); Communes (9,082)
Provincial Administration; Elected Communes
and Sangkat (1621)
Provincial Administration; Elected
Provincial(75), District (811) and Subdistrict
Source: World Bank (2005), CLAIR/COSLOG (2009)
Average
population of
first-tier
subnational
governments
(million 2002)
7.0
0.5
40.0
1.3
0.8
0.5
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8. Diversities of
Decentralization Policy
Country
Policy Orientation
Indonesia
Focus on substantial devolution to cities and districts; limited formal role
at lowest levels; more emphasis on the role of higher levels since 2004
Philippines Focus on devolution to subprovincial units, but provinces pay a
significant role
China
Main focus on deconcentration to provinces and large cities, although
lower levels have larger public expenditure role and elements of de
facto devolution have emerged in some areas; provinces have
considerable regulatory control over lower levels
Main focus on deconcentration with stronger role for provinces,
Vietnam
including regulatory control over subprovincial governments that have
been allocated rights over specific functions, approaching devolution
Cambodia Hybrid: with deconcentration to provinces and devolution to communes;
commune system given greater emphasis but provinces significant in
terms of public expenditure
Hybrid: historical focus on deconcentration to provinces and districts
Thailand
and shift towards devolution to local institutions at levels of
municipalities, districts and subdistricts since 1997
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Source: World Bank (2005)

9. Diversities of Capacity
(Access to Finance)
Local Collection
Country
Indonesia
Philippines
China
Vietnam
Cambodia
Thailand
Ownsource
revenues
○
◎
◎
○
○
○
Shared
taxes
◎
◎
●
◎
○
◎
Inter-governmental Transfer
Unconditional
transfers
●
●
○
◎
●
◎
Conditional
transfers
Informal
revenues
○
○
●
●
n.a.
◎
◎
◎
●
◎
●
○
Note: ○：Low, ◎：moderate and ●：high refer to the rough proportion of
total subnational revenues attributable to each revenue
Source: World Bank (2005) and other sources
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10. Issues behind decentralization (1)
• Prodemocracy movement after the collapse of
government more favored subprovincial levels
Indonesia: rivalry between central political elites and
provincial elites led to focus on districts
Philippines: call for grassroots “people’s power” led
to devolution to multiple levels
• Economic reform
administrative/fiscal focus
China: need to manage large and diverse areas; no
formal policy and variation of treatment
Vietnam: balanced growth thr. public adm. reform
10

11. Issues behind decentralization (2)
• Change in political support
progress
stop-and-start
Thailand: 1997 Constitution and comprehensive plan;
favored more role of centrally appointed governors
under Thaksin administration
Indonesia: concern over loose-end led to the return of
more role of provinces by Law 32
• Inconsistencies and unclear division of
functions and authority
Philippines, China & Vietnam : conflate the
accountability of local staff
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12. Issues behind decentralization (3)
• Limited authority over resource-raising and
allocation and strong central civil service control
Philippines: limited grant remain for non-wage cost
China, Indonesia: tendency of charging illegal
extrabudgetary fees:

tendency of non-transparent staff payment

lack of incentives for lean management
• Limited capacity of local bodies
General tendency: Insufficient coordination between
planning and budgeting; poor collection
Thailand, Cambodia: cautious progress

13. Triangle Strategy for Decentralization
Mission
- National Goal
- Problems to be tackled
Institutional Design
- Rules
Capacity of
Government
- Accountability
Relations
- Political Support
- Financial Resources
- Operational Capacity
- Attitude

14. 3.Long-Term Process of
Decentralization – Case of Japan
• Modern Nation Building (1868-):
Deconcentration and Delegation for
achieving National Minimum
• Post War Period (1945-):
Delegation for social and economic
development
• Decentralization Reforms (late1990s-)
Devolution for dealing with more diversified
social needs
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15. Modern Nation Building (1868-)
Priorities of Meiji Government:
• Building of Prosperous and Strong State
Aiming at National Integration & Industrialization
Achieving “National Minimum” through Standardized
Provision of Service Delivery
• Centralization and Deconcentration with
Elaborate Local Network
Local Gov’t System created as effective vehicle Tasks
delegated and controlled by M. of Interior
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16. Acting as
General
Branch
Offices of
MOI
(47)
Delegation
from
Prefectures
16
Source: Kengo AKIZUKI (2005)

17. Post-war Period (1945-)
Thrusts of New Constitution :
• Principle of Autonomy
Complete autonomy in prefectures
Dismantling of Ministry of Interior
Establishment of Local Autonomy Law (1947-)
• Succeeding Delegation from central
government to prefectures
Concern over local management capacity
Retaining control and supervision by upper level of
governments
• Resulted Remarkable Economic Growth
17

18. Contributions to National Development Plans
by centralized inter-government system
Industrial Development
Export Promotion
Advanced
Social
Services
Improving Living Standard
(Urban Development)
18
Source: Kengo AKIZUKI (2005)

19. Post-war Local Government System
to ensure integrated national development
Role of
Planners
Central Ministries
Decision making authority is reserved
by central government : implementation
is controlled and intervened by national
policy
Delegation
Subsidies
Personnel
Exchange
Program
Role of
Implementers
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20. Overlapped functions (Infrastructure, education and health)
Overlapped tax bases (personal income/inhabitant/corporate income)
Fiscal equalization through local allocation tax and subsidies)
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Source: Kengo AKIZUKI (2005)

21. Decentralization Reforms since the
late1990s
Changing Environment since the 1990s
•Economic globalization and increasing external threats
•Increase of ageing population
•Persistent government debt
To deal w ith m ore diversified social needs m ore
stringently based on m ore local autonom y
• Comprehensive Decentralization Law
(2000)
Local Autonomy (abolish delegation)
• Local Administration Reform (adoption of
NPM, cooperation among local
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governments)

22. Triangle Strategy for Decentralization:
case of Japan
Mission
National Integration
 National Economic Growth
Meeting diversified social needs
Institutional Design
Deconcentration
Delegation and
Capacity development
for local governments
More local autonomy
Capacity
Fiscal equalization by
subsidies and grants
Building Capacity
through exchange
Fiscal moral hazard