Theory and practice of decentralization in developing countries: evidence from Republic of Moldova

Abstract

There has been a significant increase in attention to the understanding and evaluation of decentralization reforms in the Republic of Moldova. Under the insistence and guidance of World Bank and European international organizations (e.g. EBRD), the executive and legislative branches of Moldovan Government embarked on the pro-decentralization path. The existing body of knowledge on decentralization reform design and implementation in Republic of Moldova is extensive (e.g. Morozov (2008, 2009, 2010 a&b, 2014), World Bank Country-Profile Report (2005, 2008, 2014). However, it is rather fragmented. The fragmented nature of previous studies stems two separate sources: (1) data availability and (2) Timeframe of the data availability. This exploratory study addresses exactly this gap in the literature on decentralization reform in developing countries using Moldova as an example. It uses the primary sources of data regarding economic activity of general, central, and subnational governments to evaluate the economic dimension of decentralization between 2005 and 2013. The manuscript uses the data assessing the existence and quality of political and public administration systems between 2005 and 2013. These data are then employed for assessment of the evolution of the decentralization level between 2005 and 2013 in Republic of Moldova.