This book offers insights and lessons that help us understand when the answer is “Yes”, and when it is “No”. It shows us how decentralisation can be designed to drive development forward, and focuses attention on how institutional incentives can be created for governments to improve public sector performance and strengthen economies in ways that enhance citizen well-being. It also draws attention to the political motives behind decentralisation reforms and how these shape the institutions that result. The book's purpose is to marry policy makers’ detailed knowledge and insights about real reform processes with academics’ conceptual clarity and analytical rigor. This synthesis naturally shifts the analysis towards deeper questions of decentralization, stability and the strength of the State. The book explores these in Part 1, with deep studies of the effects of reform on state capacity, political and fiscal stability, and democratic inclusiveness in Bolivia, Pakistan, India, and Latin America more broadly. These complex questions—crucially important to policy makers but difficult to address with statistics—yield before a multipronged attack of quantitative and qualitative evidence combined with deep practitioner insight. How should reformers design decentralisation? Part 2 examines these issues with evidence from four decades of reform in developing and developed countries. What happens after reform is implemented? Decentralization and Local Service Provision turns to decentralization’s effects on health and education services, anti-poverty programs, etc. with original evidence from twelve countries across Africa, Asia, and Latin America.

It is evident that administrative reforms are undertaken by many countries in the world today and in fact, administrative change appears to be a constant factor in regimes that desire to reform their social, political and economic systems. Normally, reform initiatives are regarded as necessary for organizations that want to adapt to the changing environment and to be able to expand and cope with increasing activities and global challenges. Nevertheless, strategies for reform initiatives will differ between sectors and also between nations as each country tries to handle reform in accordance with the country’s administrative traditions, political and cultural nuances and level of economic development. The process of reform may involve a particular sector or administration of the government or an entire level of the government such as the local government. The main characteristic of administrative reform is normally projected in attempts to decentralize powers and autonomy to lower levels of government. It connotes importance that such transition of powers is supposedly significant to the unification and development of a nation. This is especially so, as some studies have shown, where the shift of power to local government has created a series of hierarchically ordered units of administration at some of the lowest levels of government. The implication is a movement of power from the centre and may determine the scope of decentralization, nonetheless it involves a transition process that ultimately may change the characteristics of power structure of the different levels of government.

Local government in Malaysia occupies the third and lowest level after federal and state governments. Under the Malaysian federal constitution (paragraphs 4 and 5 of the Ninth Schedule), local government is the responsibility of the states, but the federal government also exercises considerable power and influence over local government, especially in peninsular Malaysia. The dynamic of the Malaysian federal system is such that it has shifted the balance of power to the centre.Local government accounts for only 1% of GDP. There are 144 local authorities divided into cities (major administrative and commercial centres), municipalities (other urban areas), and districts (chiefly rural areas). Executive powers rest with the Mayor (cities) or President, supported and/or overseen by a system of committees. Currently, local councils in Malaysia are not elected: councillors are appointed by the state government for 3-year terms (with the option of re-appointment) and in most cases come from the ruling coalition.