Democratic decentralisation is advocated as a means of providing more appropriate, efficient and accessible public services, and of achieving a variety of interrelated socio-economic objectives, including poverty reduction and economic development. Few studies, however, empirically explore the links between decentralisation and economic development partly because it is difficult to accurately measure the effect of decentralisation on economic development. Lessons from the research include:
- Local governments need to understand their potential role in supporting private sector development and creating an environment for economic growth.
- Municipal officials and policymakers may require capacity building to help them manage economic projects
- Investment in physical infrastructure, such as roads, water, telecommunication services and electricity is an important pre-condition for economic growth.
