East Asian Decentralizes

More than ever, the future of East Asian countries depends on the capacity and performance of local and provincial governments, according to the World Bank report, East Asia Decentralizes.

This decentralization has also unleashed local initiative and energy, with new ways to deliver services to people. With great potential for continued improvement and innovation, finds the report, it is essential that decentralization is done right.

The report, which focuses on six countries, notes the differences in the approach to decentralizing government in Cambodia, China, Indonesia, the Philippines, Thailand, and Vietnam. Despite encouraging progress, fundamental problems remain. Across the region, local governments lack the resources and power to fulfill their new responsibilities, and they have few incentives to improve their performance.