1932

Abstract

Classic arguments for decentralization, augmented by ideas about how participation empowers the poor, motivate the widely used approach in foreign aid called community-driven development (CDD). CDD devolves control over the selection, implementation, and financial management of public goods to communities. Until recently, policy enthusiasm has outstripped the evidence. I synthesize findings from randomized controlled trials and find that CDD effectively delivers public goods and modest economic returns at low cost in difficult environments. There is little evidence, however, that CDD transforms local decision making or empowers the poor in any enduring way. Part of this failure may be because some constraints believed to be important—like insufficient social capital—appear not to bind. Others, like exclusive local institutions, are a problem, although not one that CDD remedies. These results present a conundrum: How much participation is enough to safeguard the gains of such extreme decentralization while minimizing the opportunity costs imposed on poor people's time?

Loading

Article metrics loading...

/content/journals/10.1146/annurev-economics-080217-053339
2018-08-02
2024-03-28
Loading full text...

Full text loading...

/deliver/fulltext/economics/10/1/annurev-economics-080217-053339.html?itemId=/content/journals/10.1146/annurev-economics-080217-053339&mimeType=html&fmt=ahah

Literature Cited

  1. Acemoglu D, Johnson S, Robinson JA 2001. The colonial origins of comparative development: an empirical investigation. Am. Econ. Rev. 91:51369–401
    [Google Scholar]
  2. Alatas V, Banerjee A, Hanna R, Olken BA, Tobias J 2012. Targeting the poor: evidence from a field experiment in Indonesia. Am. Econ. Rev. 102:41206–40
    [Google Scholar]
  3. Anderson ML, Magruder J 2017. Split-sample strategies for avoiding false discoveries Work. Pap., Univ. Calif Berkeley:
  4. Avdeenko A, Gilligan MJ 2015. International interventions to build social capital: evidence from a field experiment in Sudan. Am. Political Sci. Rev. 109:3427–49
    [Google Scholar]
  5. Banerjee A, Iyer L 2005. History, institutions, and economic performance: the legacy of colonial land tenure systems in India. Am. Econ. Rev. 95:41190–213
    [Google Scholar]
  6. Banerjee AV, Banerji R, Duflo E, Glennerster R, Khemani S 2010. Pitfalls of participatory programs: evidence from a randomized evaluation in education in India. Am. Econ. J. Econ. Policy 2:11–30
    [Google Scholar]
  7. Bardhan P 2002. Decentralization of governance and development. J. Econ. Perspect. 16:4185–205
    [Google Scholar]
  8. Bardhan P, Mookherjee D 2006. Decentralisation and accountability in infrastructure delivery in developing countries. Econ. J. 116:101–27
    [Google Scholar]
  9. Bardhan PK, Mookherjee D 2000. Capture and governance at local and national levels. Am. Econ. Rev. 90:2135–39
    [Google Scholar]
  10. Barron P, Diprose R, Woolcock M 2006. Local conflict and community development in Indonesia Indones. Soc. Dev. Pap. 10 World Bank Washington, DC:
  11. Beaman L, Chattopadhyay R, Duflo E, Pande R, Topalova P 2009. Powerful women: Does exposure reduce bias. Q. J. Econ. 124:41497–540
    [Google Scholar]
  12. Beath A, Christia F, Enikolopov R 2013.a Do elected councils improve governance? Experimental evidence on local institutions in Afghanistan Res. Pap. 2013-24, Political Sci. Dep., Mass. Inst. Technol., Cambridge, MA
  13. Beath A, Christia F, Enikolopov R 2013.b Empowering women through development aid: evidence from a field experiment in Afghanistan. Am. Political Sci. Rev. 107:3540–57
    [Google Scholar]
  14. Beath A, Christia F, Enikolopov R 2013.c Randomized impact evaluation of Afghanistan's National Security Programme: final report Rep World Bank Washington, DC:
  15. Beath A, Christia F, Enikolopov R 2017.a Can development programs counter insurgencies? Evidence from a field experiment in Afghanistan Res. Pap. 2011-14, Political Sci. Dep., Mass. Inst. Technol., Cambridge, MA
  16. Beath A, Christia F, Enikolopov R 2017.b Direct democracy and resource allocation: experimental evidence from Afghanistan. J. Dev. Econ. 124:199–213
    [Google Scholar]
  17. Beatty A, BenYishay A, King E, Orbeta A, Pradhan M 2017. Impact evaluation of KALAHI-CIDDS: third round report Work. Pap., Coll. William Mary Williamsburg, VA:
  18. Bhavnani R 2009. Do electoral quotas work after they are withdrawn? Evidence from a natural experiment in India. Am. Political Sci. Rev. 103:123–35
    [Google Scholar]
  19. Bjorkman M, Svensson J 2009. Power to the people: evidence from a randomized field experiment on community-based monitoring in Uganda. Q. J. Econ. 124:2735–69
    [Google Scholar]
  20. Bjorkman Nyqvist M, de Walque D, Svensson J 2017. Experimental evidence on the long-run impact of community-based monitoring. Am. Econ. J. Appl. Econ. 9:133–69
    [Google Scholar]
  21. Casey K, Glennerster R, Miguel E 2011. The GoBifo project evaluation report: assessing the impacts of community driven development in Sierra Leone Rep World Bank Washington, DC:
  22. Casey K, Glennerster R, Miguel E 2012. Reshaping institutions: evidence on aid impacts using a preanalysis plan. Q. J. Econ. 127:41755–812
    [Google Scholar]
  23. Casey K, Glennerster R, Miguel E 2013. Dataset for “Reshaping institutions: evidence on aid impacts using a preanalysis plan Data Set, Harvard Dataverse, V4, Harvard Univ., Cambridge, MA. https://hdl.handle.net/1902.1/21708
  24. Casey K, Glennerster R, Miguel E, Voors M 2018. Institutions and technocratic skill in local economic development Work. Pap., Grad. School Bus., Stanford Univ Stanford, CA:
  25. Chattopadhyay R, Duflo E 2004. Women as policy makers: evidence from a randomized policy experiment in India. Econometrica 72:51409–43
    [Google Scholar]
  26. Cilliers J, Dube O, Siddiqi B 2016. Reconciling after civil conflict increases social capital but decreases individual wellbeing. Science 352:6287787–94
    [Google Scholar]
  27. Crost B, Felter J, Johnston P 2014. Aid under fire: development projects and civil conflict. Am. Econ. Rev. 104:61833–56
    [Google Scholar]
  28. Dongier P, Domelen JV, Ostrom E, Rizvi A, Wakeman W et al. 2002. Community-driven development. A Sourcebook for Poverty Reduction Strategies, Vol. 1: Core Techniques and Cross-Cutting Issues J Klugman 301–31 Washington, DC: World Bank
    [Google Scholar]
  29. Duflo E 2012. Women empowerment and economic development. J. Econ. Lit. 50:41051–79
    [Google Scholar]
  30. Duflo E 2017. The economist as plumber Work. Pap., Mass. Inst. Technol Cambridge, MA:
  31. Duflo E, Dupas P, Kremer M 2015. School governance, teacher incentives and pupil-teacher ratios: experimental evidence from Kenyan primary schools. J. Public Educ. 123:92–110
    [Google Scholar]
  32. Easterly W 2006. The White Man's Burden: Why the West's Efforts to Aid the Rest Have Done So Little. New York: Penguin
    [Google Scholar]
  33. Engerman SL, Sokoloff KL 1997. Factor endowments, institutions, and differential paths of growth among New World economies: a view from economic historians of the United States. How Latin America Fell Behind: Essays on the Economic Histories of Brazil and Mexico, 1800–1914 S Haber 260–304 Stanford, CA: Stanford Univ. Press
    [Google Scholar]
  34. Fearon J, Humphreys M, Weinstein JM 2009. Development assistance, institution building, and social cohesion after civil war: evidence from a field experiment in Liberia Work. Pap. 194 Cent. Glob. Dev Washington, DC:
  35. Fearon J, Humphreys M, Weinstein J 2014. Replication data for “How does development assistance affect collective action capacity? Results from a field experiment in post-conflict Liberia Data Set, Harvard Dataverse, V1, Harvard Univ Cambridge, MA: https://doi.org/10.7910/DVN/28006
    [Crossref]
  36. Fearon J, Humphreys M, Weinstein J 2015. How does development assistance affect collective action capacity? Results from a field experiment in post-conflict Liberia. Am. Political Sci. Rev. 109:3450–69
    [Google Scholar]
  37. Freedom House. 2000. Freedom in the world report: 2000 Rep., Freedom House Washington, DC:
  38. Galasso E, Ravallion M 2005. Decentralized targeting of an antipoverty program. J. Public Econ. 89:4705–27
    [Google Scholar]
  39. Humphreys M, Sanchez de la Sierra R, van der Windt P 2012. Social and economic impacts of Tuungane: final report on the effects of a community driven reconstruction program in eastern Democratic Republic of Congo Rep., Columbia Univ New York:
  40. Humphreys M, Sanchez de la Sierra R, van der Windt P 2015. Social engineering in the tropics: a grassroots democratization experiment in the Congo Work. Pap., Columbia Univ New York:
  41. King E, Samii C 2014. Fast-track institution building in conflict-armed countries? Insights from recent field experiments. World Dev 64:740–54
    [Google Scholar]
  42. Kling JR, Liebman JB, Katz LF 2007. Experimental analysis of neighborhood effects. Econometrica 75:183–119
    [Google Scholar]
  43. Kremer M, Miguel E 2007. The illusion of sustainability. Q. J. Econ. 122:31007–65
    [Google Scholar]
  44. Labonne J 2015. KALAHI-CIDSS impact evaluation: additional results Unpublished manuscript, Oxford Univ Oxford, UK:
  45. Labonne J, Chase RS 2009. Who is at the wheel when communities drive development? Evidence from the Philippines. World Dev 37:219–31
    [Google Scholar]
  46. Labonne J, Chase RS 2011. Do community-driven development projects enhance social capital? Evidence from the Philippines. J. Dev. Econ. 96:348–58
    [Google Scholar]
  47. Laudati A, Mvukiyehe E, van der Windt P 2017. Participatory development in fragile and conflict-affected contexts: final report of the Tuungane 1 program Unpublished manuscript, New York Univ. Abu Dhabi, United Arab Emir.
  48. Mansuri G, Rao V 2004. Community-based and -driven development: a critical review Policy Res. Work. Pap. 3209 World Bank Washington, DC:
  49. Mansuri G, Rao V 2013. Localizing development: Does participation work Policy Res. Rep World Bank Washington, DC:
  50. Miguel E, Gugerty MK 2005. Ethnic diversity, social sanctions, and public goods in Kenya. J. Public Econ. 89:2325–68
    [Google Scholar]
  51. Myerson RB 2011. Toward a theory of leadership and state building. PNAS 108:21297–301
    [Google Scholar]
  52. Myerson RB 2017. Village communities and global development Work. Pap., Univ. Chicago
  53. Nunn N, Qian N 2014. U.S. food aid and civil conflict. Am. Econ. Rev. 104:61630–66
    [Google Scholar]
  54. Oates WE 1972. Fiscal Federalism New York: Harcourt Brace Jovanovich
  55. Oates WE 1999. An essay on fiscal federalism. J. Econ. Lit. 37:31120–49
    [Google Scholar]
  56. Olken BA 2007. Monitoring corruption: evidence from a field experiment in Indonesia. J. Political Econ. 115:2200–49
    [Google Scholar]
  57. Olken BA 2010. Direct democracy and local public goods: evidence from a field experiment in Indonesia. Am. Political Sci. Rev. 104:2243–67
    [Google Scholar]
  58. Olken BA, Onishi J, Wong S 2014. Should aid reward performance? Evidence from a field experiment on health and education in Indonesia. Am. Econ. J. Appl. Econ. 6:41–34
    [Google Scholar]
  59. Olken BA, Singhal M 2011. Informal taxation. Am. Econ. J. Appl. Econ. 3:1–28
    [Google Scholar]
  60. Olson M 1965. The Logic of Collective Action: Public Goods and the Theory of Groups. Cambridge, MA: Harvard Univ. Press
    [Google Scholar]
  61. Ostrom E 1990. Governing the Commons: The Evolution of Institutions for Collective Action. Cambridge, UK: Cambridge Univ. Press
    [Google Scholar]
  62. Ostrom E 2000. Collective action and the evolution of social norms. J. Econ. Perspect. 14:3137–58
    [Google Scholar]
  63. Persson T, Roland G, Tabellini G 1997. Separation of powers and political accountability. Q. J. Econ. 112:41163–202
    [Google Scholar]
  64. Platteau JP, Gaspart F 2003. The risk of resource misappropriation in community-driven development. World Dev 31:101687–703
    [Google Scholar]
  65. Putnam R 2000. Bowling Alone: The Collapse and Revival of American Community. New York: Simon & Schuster
    [Google Scholar]
  66. Rodrik D, Subramanian A, Trebbi F 2004. Institutions rule: the primacy of institutions over geography and integration in economic development. J. Econ. Growth 9:2131–65
    [Google Scholar]
  67. Sen A 1985. Commodities and Capabilities Amsterdam: North-Holland
  68. Sen A 1999. Development as Freedom New York: Alfred Knopf
  69. Shleifer A, Vishny R 1993. Corruption. Q. J. Econ. 108:3599–617
    [Google Scholar]
  70. U. N. (United Nations). 2015. Transforming our world: the 2030 Agenda for Sustainable Development Rep. A/RES/70/1, United Nations New York:
  71. van der Windt P, Humphreys M, Sanchez de la Sierra R 2018. Gender quotas in development programming: null results from a field experiment in Congo. J. Dev. Econ. In press
  72. Voss J 2008. Impact Evaluation of the Second Phase of the Kecamatan Development Program. Washington, DC: World Bank
    [Google Scholar]
  73. Voss J 2012. PNPM Rural Impact Evaluation Jakarta: PNPM Support Facil.
  74. Wassenich P, Whiteside K 2004. CDD Impact Assessments Study: optimizing evaluation design under constraints Soc. Dev. Pap. 51 World Bank Washington, DC:
  75. White H 1999. Politicizing development? The role of participation in the activities of aid agencies. Foreign Aid: New Perspectives KL Gupta 109–25 Boston: Kluwer Acad.
    [Google Scholar]
  76. White H, Menon R, Waddington H 2017. Community-driven development: Does it build social cohesion or infrastructure? A mixed-method evidence synthesis report Work. Pap. 29 Int. Initiat. Impact Eval New Delhi:
  77. Wong S 2012. What have been the impacts of World Bank community-driven development programs Work. Pap. 69541 World Bank Washington, DC:
  78. World Bank. 2003. World Development Report 2004: making services work for poor people Rep World Bank Washington, DC:
  79. World Bank. 2013. The KALAHI-CIDSS Impact Evaluation: a revised synthesis report Rep. World Bank Washington, DC:
  80. World Bank. 2014. Implementation completion and results report No. ICR00003238 Rep. World Bank Washington, DC:
/content/journals/10.1146/annurev-economics-080217-053339
Loading
/content/journals/10.1146/annurev-economics-080217-053339
Loading

Data & Media loading...

  • Article Type: Review Article
This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error