Decentralization in Pakistan: Are Local Politicians Likely to be More Accountable? http://siteresources.worldbank.org/INTINVTCLI/Resources/decentralizationinPakistan.pdf Khan, Feisal (2007) 'Corruption and the Decline of the State in Pakistan', Asian

We are deeply grateful to Nobuo Yoshida for useful inputs, data analysis and background research, and to Asim Khwaja for insightful and thorough comments on an earlier version. We also wish to thank Nicholas Manning and Hanid Mukhtar for providing information on recent developments in Pakistan’s devolution process. Widespread advocacy of decentralization has its roots in discontent over central government responsiveness to citizens, whether manifested as high rates of corruption, an excessive focus on patronage or as inadequate public good provision. The record surrounding decentralization, however, is mixed. For example, in two of the most rigorous studies of the public policy effects of decentralization in developing countries, Faguet (2002) and Azfar, et al. (2000) conclude that public investment by local governments is more progressive and responsive to the poor than central government investment decisions. Looking at a number of other cases, Manor (1999) finds, however, that the effect of decentralization on public sector performance is far from assured. A recent and growing literature on political economy suggests numerous political market failures that might give rise to government breakdowns; to the extent tha