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File2-page241 - Besley Ghatak(Mimeo Decentralisation and...

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Besley & Ghatak (Mimeo) Decentralisation and NGOs public services and taxes and devolution of power began here in 1979. In part, due to years of collective action, decentralisation took place against a background of reasonably well functioning local institutions. For e.g., there is egalitarian access to agricultural land at the village level. This, almost unique institutional feature serves as a basic form of social pro- tection and underlies China’s achievements in constraining poverty and undernutrition in the countryside. Despite these achievements in maintaining a reasonably equitable alloca- tion of resources at the village level, the decentralisation of local public services, which also forms an important part of social protection system in rural and urban problem has run into problems for the following two main reasons: (i) Decentralisation of power over spending has only been to the provincial as opposed to lower (country, village) levels of government.
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