Assessment of Decentralized Service Delivery Arrangements and Institutional Performance: the Case of Pakistan Local Government Reforms

Abstract This thesis seeks to understand the relationship between decentralized service delivery arrangements and the institutional performance of local government in Pakistan. This is achieved by examining the structures and processes associated with local governance, and situating public sector organizations in their wider context. The key aim of this thesis was to empirically evaluate the relationship between decentralization and institutional performance. The thesis contends that problem of service delivery can only be understood by examining the whole system of service delivery. Although, the focus of the research was on public sector management, however, it is argued that public sector organizations cannot be separated from their political environment. To address this concern, the thesis developed a conceptual framework based on three theoretical perspectives; the economic, political and New Public Management. Each perspective focused on a different level of analysis and identified a different way of explaining the phenomenon of decentralization and its impact on institutional performance. The study utilised a comprehensive research methodology to study the link between decentralization and performance through a multiple case study approach. The main empirical elements of the research were a community survey of two communities in two local authorities, an organizational survey of two sectors - education and water and sanitation. Detailed semi-structured interviews were undertaken with multiple stakeholders at various levels of service delivery. The research findings indicate that there is a relationship between decentralization and institutional performance; however the contextual environment plays a significant role in affecting the performance of service provision. The empirical findings indicate that decentralization reforms in developing countries remain focused on structural decentralization and need strong political and bureaucratic commitment for real autonomy to be transferred down the hierarchy. One implication of this research is that it provided a comprehensive assessment of the decentralized service delivery model in Pakistan and identified the nature of reforms developing countries are taking up and the constraints on public sector organizations, and hence contributed to the emerging literature on public management reforms in developing countries (McCourt 2008, McCourt, Martin 2001)