Discussion Paper

No. 2013-38 | July 29, 2013
How Close Is Your Government to Its People? Worldwide Indicators on Localization and Decentralization

Abstract

This paper is intended to provide an assessment of the impact of the silent revolution (decentralization reforms) of the last three decades on moving governments closer to people to establish fair, accountable, incorruptible and responsive governance. To accomplish this, a unique data set is constructed for 182 countries by compiling data from a wide variety of sources to examine success toward decentralized decision making across the globe. An important feature of this data set is that, for comparative purposes, it measures government decision making at the local level rather than at the sub-national levels used in the existing literature. The data are used to rank countries on political, fiscal and administrative dimensions of decentralization and localization. These sub-indexes are aggregated and adjusted for heterogeneity to develop an overall ranking of countries on the closeness of their government to the people. The resulting index is associated with higher level of human development and lower level of corruption, and thus provides a useful explanation of the Arab Spring and other recent political movements and waves of dissatisfaction with governance around the world.

JEL Classification

H10 H11 H83 I31 O10

Cite As

Maksym Ivanyna and Anwar Shah (2013). How Close Is Your Government to Its People? Worldwide Indicators on Localization and Decentralization. Economics Discussion Papers, No 2013-38, Kiel Institute for the World Economy. http://www.economics-ejournal.org/economics/discussionpapers/2013-38

Assessment



Comments and Questions


Anonymous - Referee Report 1
July 29, 2013 - 15:01

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Maksym Ivanyna - Reply to Referee Report 1
August 07, 2013 - 13:17

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Maksym Ivanyna - Revised Version
August 07, 2013 - 13:19

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Maksym Ivanyna - New Table A2
August 20, 2013 - 11:00

see attached file


Anonymous - Referee Report 2
August 23, 2013 - 07:59

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Maksym Ivanyna - Reply to Referee Report 2
August 27, 2013 - 08:28

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