Decentralization in education : an economic perspective

Abstract

Evaluating decentralization in terms of three economic criteria - social efficiency, technical efficiency, and equity - the paper argues that some decisionmaking (about finance and teacher recruitment) should be provided for at the local level, and some (about school organization and curriculum) at the regional level. A system of central government grants should be used to correct problems of equity and inefficiency inherent in a decentralized system. Little is known about the economic and educational consequences of decentralization, despite a wide variety of country experiences. The effects of decentralization are difficult to isolate, so scholars have focused instead on issues of implementation.