Decentralized Autonomous Organizations (DAOs) aim to foster decentralization but often exhibit "shadow-centralization" (i.e., a small group essentially exercises their governance power in voting, despite the wide distribution of voting rights). While prior literature has noted the potential for centralization in DAOs, it has not adequately distinguished between the centralization of governance power (i.e., tokens) holding and the centralization of power exercise through voting, nor has it examined the transition from the former to the latter. Furthermore, the literature has underexplored the consequences of this power transition for governance outcomes and the related contingent factors. Our study fills this gap by explicitly examining how centralization shifts from holding to voting and how this transition impacts the performance of DAO-governed decentralized applications (DApps). We also examine how these effects are contingent on the capability of voters and the nature of the governance issues. Focusing on both on-chain and off-chain DAOs, we find that an increase in centralization from holding to voting negatively affects DApp performance, confirming that concerns about "shadow-centralization" are warranted. We also find that this negative impact is mitigated when voters possess greater experience and connectivity than the broader group of token holders. Also, the adverse effect is more salient for proposals requiring higher deliberation and is less salient for novel proposals. Our study advances the understanding of DAO governance by highlighting the source of shadow centralization and reveals that it implications depend on who votes and what they vote on.
Decentralization is widely promoted as a governance reform to improve efficiency, accountability, and responsiveness in public service delivery, particularly in the health sector. In Pakistan, the 18th Constitutional Amendment of 2010 marked a significant shift in governance by devolving health sector responsibilities from the federal government to provincial governments. This reform substantially transformed Public Financial Management (PFM) arrangements in the health sector, affecting budgeting, expenditure control, and accountability mechanisms. This paper examines the impact of decentralization on health sector PFM in Pakistan by situating the reform within broader theoretical and empirical literature. It analyzes changes in health financing, governance, and service delivery outcomes while identifying persistent institutional and fiscal challenges. The study argues that although decentralization has enhanced provincial autonomy and policy responsiveness, weaknesses in public financial management capacity, coordination, and equity continue to limit its effectiveness. Strengthening PFM systems is therefore essential for translating decentralized governance into improved health outcomes in Pakistan.
Neither fiscal federalism nor austerity theory adequately explain shifts in US local government expenditure after the Great Recession. We assess spatial differences in local government expenditure composition using finance data for all local governments in the USA from 2007 to 2017. Overall, there was considerable stability in local expenditure patterns, despite pressures generated by the Great Recession. State decentralization, state aid, politics, local capacity, and need all affect local expenditure patterns. Panel regressions of education, social, and allocational expenditures show decentralization is associated with more redistributive expenditure at the local levelânot less, as fiscal federalism and austerity theory claim. However, decentralization of educational expenditure is associated with less local educational expenditure. State aid, by contrast, has a complementary effect on local education expenditure. Education spending dropped and then recovered, but state educational aid was found to privilege suburbs. Social expenditure grew during the Great Recession as most cities and counties maintained social welfare expenditures even in the face of fiscal constraints. Overall state aid for social welfare relieved local social expenditure, but it had a complementary effect on social welfare spending in states with historically high social welfare commitments (NY, CA, the Midwest). Localities in the Midwest faced greater fiscal stress, as state aid for social welfare plummeted in these states during the Great Recession. Despite the austerity faced by Midwestern counties, they maintained redistributive expenditure levels. US local governments are not austerity machines. They practice pragmatic municipalismâmeeting needs despite limited fiscal resources.
Abstract Although decentralization is frequently used to improve service delivery and development, the impact of symmetrical fiscal decentralization on local government authorities ( lga s) and fair development has not been thoroughly investigated. Whilst symmetrical decentralization allows lga s to collect revenue and finance development projects, there are disparities among lga s in their ability to collect sufficient revenue and implement development projects. This study goes beyond prior research by investigating the way differences in the financial capacity of lga s affect development in various regions of Tanzania using a review of recent audit reports and studies. Results indicate that while certain lga s have shown a strong ability to collect revenue, others struggle considerably, due to factors such as historical background, revenue sources, population variations, urban-rural divides, and citizen awareness. Furthermore, the intergovernmental transfers, intended as an equalization strategy, have led to lga s remaining highly dependent on the central government and subject to the central governmentâs financial capacity. This study concludes that symmetrical fiscal decentralization in Tanzania has not achieved its intended goals. Despite some lga s over-collecting revenue, most remain heavily dependent on intergovernmental transfers, which are inconsistently distributed and often politically influenced, thus intensifying uneven development trends. The study recommends updating the 1998 policy to integrate asymmetrical decentralization, amending the Local Government Acts of 1982, building capacity to lga s, and shifting the central governmentâs role from controller to supporter.
IntroductionResearch on government decentralization is well established both globally and domestically. However, a notable gap persists in the literature: few studies have systematically examined the relationship between decentralization and sustainable development. This gap is especially pronounced in the Iranian context, whereâdespite some early efforts (e.g., Obedeh & Mousavi, 2009)âempirical investigations linking decentralization to sustainability remain scarce. Moreover, much of the existing sustainability discourse has narrowly focused on environmental, economic, and social pillars, often overlooking the critical role of governance structures, particularly decentralization, in enabling sustainable outcomes. Addressing this lacuna, the present study aims to identify and prioritize key dimensions of government decentralization that contribute to sustainable development. MethodologyThis study adopts an applied, non-experimental descriptive design. The research population comprises 25 experts in public administration, including 16 university faculty members and 9 senior officials from government organizations. Participants were selected through purposive sampling using the snowball technique. Data were collected via a structured expert questionnaire grounded in a nine-dimensional conceptual framework. Reliability was assessed using the inconsistency index, while validity was evaluated through the Lausche coefficient. Factor prioritization was conducted using the Analytic Hierarchy Process (AHP), a multi-criteria decision-making method widely employed in policy and governance research. FindingsBased on the results, it is clear that the index of monitoring local conditions with a weight of 0.192 is the first priority. The index of attracting local funds with a weight of 0.084 is in the second priority. The index of financing by the government with a weight of 0.075 is in the third priority. The index of determining goals based on the principles of sustainability with a weight of 0.075 is in the fourth priority. The index of alignment of sustainability goals with the needs of the local community with a weight of 0.073 is in the fifth priority. The index of trust in local managers with a weight of 0.065 is in the sixth priority. The budgeting index based on sustainability goals with a weight of 0.063 is ranked seventh. The index of commitment to accountability with a weight of 0.054 is in the eighth priority. The index of increasing the authority of local institutions with a weight of 0.049 is in the ninth priority. The education index of local managers with a weight of 0.049 is in the tenth priority. Discussion and ConclusionThe criterion of contextual targetingâdefined as aligning policies and governance decisions with local conditionsâemerged as the highest priority, with a normalized weight of 0.339. This underscores a fundamental principle of effective decentralization: one-size-fits-all mandates are ill-suited to diverse regional contexts. Leading decentralized systems worldwide calibrate the scope of authority and resource allocation to subnational governments (e.g., provinces, municipalities) based on continuous monitoring of local socioeconomic, environmental, and institutional conditions. This finding resonates with Ishrodoost (2021), who identifies the absence of region-specific targeting as a key barrier to decentralization in Iran, and with Fuaâs (2022) analysis of Russiaâs decentralization reforms, which emphasizes the necessity of tailoring governance structures to regional realities.The second-highest priority was financial considerations (weight: 0.222). Globally, the fiscal relationship between central and local governments constitutes a critical determinant of local autonomy and service delivery capacity. In Iran, where local authorities suffer from chronic revenue shortages and limited fiscal autonomy, strengthening intergovernmental financial mechanisms is essential. Embedding decentralization within a good governance frameworkâcharacterized by fiscal transparency, equitable resource distribution, and performance-based budgetingâcan help address systemic challenges such as bureaucratic inefficiency, rising administrative costs, and the central governmentâs limited responsiveness to local needs. Only through such reforms can municipalities establish sustainable economic foundations and stable revenue streams. These insights align with prior studies by Zarkhani et al. (2018) and Mohammadi (2008).Third in priority is local sustainability capacity building (weight: 0.207). This entails a systematic, multi-level approach to strengthening the capabilities of local institutions, communities, and leaders to plan, implement, and sustain development initiatives. Effective capacity building integrates leadership development, community engagement, organizational learning, and institutional adaptation to foster resilience and well-being at the local level. As DeCorby et al. (2018) argue, local capacity is a prerequisite for meaningful devolution of power; without it, decentralization risks becoming symbolic rather than substantive. Similarly, Choi et al. (2019) highlight the centrality of local capacity in UN-supported decentralization efforts in developing countries.Transparency and reporting ranked fourth (weight: 0.134). Robust accountability mechanismsâincluding systematic data collection, performance monitoring, and public reportingâare vital for ensuring that decentralized authorities remain aligned with policy objectives, learn from implementation outcomes, and adapt decision-making accordingly. This finding is consistent with Zuidervik et al. (2021) and Lin et al. (2018), who emphasize transparency as a cornerstone of effective local governance.Finally, human resource performance received the lowest weight (0.097), though it remains strategically significant. Skilled, motivated, and ethically grounded personnel are essential for translating decentralization policies into practice. Human capital constitutes a core organizational asset, particularly in public institutions, where competent staff can drive innovation and sustainable performance. Chigbo (2021) identifies human resource competencies as a key enabler of decentralization, a view echoed by Rashidi et al. (2021) in their analysis of administrative decentralization in Iran.
Alma Idah, R. Biroum Bernardianto, Suffianor Suffianor
This study offers a thorough summary of the state of research in the area of local government finance by conducting a systematic literature review. Drawing on 25 years of pertinent publications in the subject of public budgeting and finance, the study addresses a variety of topics, such as capital budgeting, budgeting and budget reform, intergovernmental finance, financial management, and alternative service delivery. Scopus was used to gather the data, and 580 articles were deemed suitable for additional examination. The data were analyzed using Bibliometric approach. The analysis highlights China, the United States, and the United Kingdom as dominant contributors, with a strong focus on topics such as fiscal decentralization, local government finance, and governance efficiency. The author collaboration network reveals fragmented clusters, with limited interconnections among researchers, emphasizing the need for broader global and interdisciplinary collaborations. Additionally, the findings underscore the growing importance of emerging themes such as sustainability, digital governance, and AI-driven fiscal management, which remain underexplored. Geographical imbalances in research output further highlight the need for greater representation from underrepresented regions, including Africa, South America, and parts of Asia. Policymakers and practitioners who want to keep up with the most recent advancements and industry best practices in local government finance will also benefit from it.
This study seeks to analyze and clarify the process of budget implementation within the decentralized state services in light of the budgetary transition introduced by the Organic Law on Finance Laws (LOLF). Through this reform, Algeria has shifted from a traditional line-item budgeting systemâbased on inputs and financial meansâto a program and performance budgeting approach that emphasizes future programs, measurable outcomes, and achieved results. The findings indicate that the previously adopted line-item budgeting framework no longer meets the requirements of modern public resource management, particularly in the context of digital transformation. This system relies on conventional procedures that fail to ensure the efficient and transparent management of state resources and capacities. Consequently, Algeria has adopted program and performance budgeting as a strategic alternative, marking the first step toward the modernization of its budgetary and accounting framework. Furthermore, the study concludes that the effective implementation of this new budgeting model and the attainment of its intended objectives require a thorough understanding of the reforms introduced under the LOLF and their practical implications for decentralized financial governance.
Purpose: The aim of this article is to identify the management dysfunctions and the functioning dysfunctions of a decentralized public organization. The research question posed by the author is contained in the inquiry: what external and internal factors reduce the operational efficiency of a decentralized public organization? Design/methodology/approach: The text is based on qualitative research. The researcher relied on 51 open interviews. The work was based on three main theoretical frameworks: the theory of organizational pathologies, the theory of organizational politics and the theory of bureaucracy. Findings: The research identified endogenous and exogenous sources of dysfunctions of decentralized public organizations. These include financing, lack of trust, bureaucratic structure, communication, unification and coordination, dispersed leadership, work organization, lack of trust, finances, top-down philosophy, qualifications, and lack of collaboration. Research limitations/implications: The limitations of qualitative research are the relatively small sample size and lack of representativeness. A natural continuation of the research may be the quantitative verification of identified dysfunctions and their sources. Practical implications: The research allowed to identify sources of dysfunction in the analyzed organization. Some of them are endogenous, so they can be eliminated by the organization itself. Knowledge about exogenous sources can also be used to improve the functioning of the organization, but with the necessary participation of external entities. Social implications: Understanding the sources of dysfunction and eliminating them can contribute to improving organizational efficiency, thereby enhancing customer service and the effective use of public resources. Originality/value: Understanding dysfunctions and their sources is important for theorists and managers overseeing public organizations. Knowledge in this area is crucial for streamlining organizations and prioritizing the changes being implemented.
Stefano Balietti, Pietro Saggese, Stefan Kitzler, Bernhard Haslhofer
This chapter explores how Decentralized Autonomous Organizations (DAOs), a novel institutional form based on blockchain technology, challenge traditional centralized governance structures. DAOs govern projects ranging from finance to science and digital communities. They aim to redistribute decision- making power through programmable, transparent, and participatory mechanisms. This chapter outlines both the opportunities DAOs present, such as incentive alignment, rapid coordination, and censorship resistance, and the challenges they face, including token concentration, low participation, and the risk of de facto centralization. It further discusses the emerging intersection of DAOs and artificial intelligence, highlighting the potential for increased automation alongside the dangers of diminished human oversight and algorithmic opacity. Ultimately, we discuss under what circumstances DAOs can fulfill their democratic promise or risk replicating the very power asymmetries they seek to overcome.
Massimo Sargiacomo, Daniel E. MartĂnez, Stefania Servalli, Antonio Gitto · 5 authors
Purpose This study aims to examine how hospitals and regional and local health authorities in the Italian region of Marche accounted for and reported the use of emergency funds from the EU, the Ministry of Economic and Finance and administrative bodies called actuator subjects. Unlike a sudden impact disaster, such as an earthquake, the pandemic was slow moving and novel. This meant that the guidelines for medical, legislative, financial and administrative action were not as developed as those for sudden impact emergencies with which the Italian state was, unfortunately, experienced. Design/methodology/approach The paper investigates the Italian public healthcare setting since the declaration of the State of Emergency until its endâthat is, from January 2020 to July 2021. We conducted 31 semi-structured interviews with nine key-actors working for national, regional and local administrative bodies. A range of related official documents were analyzed. Findings We show a non-linear and emergent account of standardization and coordination. We show how different state and transnational actors developed their own procedures to standardize COVID-related cost classifications and reports. These attempts also involved coordinating assemblages, at the center of which are templates imposed on hospitals and regional authorities by national state entities for cost-reporting practices and aggregation. Importantly, templatesâ visual features enabled coordination across the different standardization initiatives that populated the emergency response effort. Research limitations/implications The paper provides academics and policy makers with insights into the role played by accounting tools, templates, reports and guidelines to coordinate different cost standardization initiatives. Originality/value Accounting guidelines that standardize costs are known to be deployed hierarchically by states and transnational organizations for coordination purposes. We highlight, however, the emergence of not only hierarchical forms of coordination but also their interrelation with decentralized forms of coordination. These two types of coordinating assemblages, each standardizes cost through the accounting templates that they use. We demonstrate the emergent nature of coordination even within hierarchical entities like the state. Reporting templates are pivotal for understanding this coordination process. However, when a centralized coordinating body is absent, it is the visual features of accounting, rather than its imposition, that enable coordination.
Purpose: The main purpose of this study is to identify the various aspects of the Justice and Progress Fund and delineate its directions in the future. In fact, the important goals of this study are to evaluate the strengths and criticisms of the Omid Entrepreneurship Fund, to identify ways getting out of the bottlenecks of the Omid Entrepreneurship Fund, to present competing alternatives to the Justice and Progress Fund, to present the advantages and bottlenecks and limitations of the Justice and Progress Fund, and to identify solutions for the implementation of the Justice and Progress Fund.Methodology: The methods used in this research are descriptive, evaluation, content analysis and comparative studies. From the point of view of aim, the research is an applied and developmental type. The tools of this study were a researcher-made questionnaire, interviews and library and documentary studies. The data were collected as a library work by using the theses, scientific and research papers as well as conference articles on the sites of Magiran, academic jihad database and scientific and research magazines of the ministers. Latin references were also used for their scientific and research articles cited on the google scholar site. To collect the research data, after making the necessary arrangements with the managers, experts and elites in the field, the research questions were provided to them in the form of a questionnaire. In total, 55 experts were selected using the snowball sampling method.Findings and discussion: The results of the investigations show that the low cost of creating the fund (the structure, facilities and hardware of the Omid Entrepreneurship Fund), the alignment and sometimes overlapping of the goals of the Justice and Progress Fund with the goals of the Omid Entrepreneurship Fund, the possibility of holding provincial officials accountable for the optimal and efficient use of resources allocated, and the possibility of proposing and applying new financing models and leveraging them have been the most important strengths and opportunities of the Justice and Progress Fund. On the other hand, the lack of transparency in grants in paragraph (a) of note (18) have caused weaknesses such as the application of taste, lack of giving and receiving reports, replacing relationships and connections instead of regulations, eliminating economic justification in activities, and creating rent and corruption in the country.Conclusions and policy implications: One of the most important results of the current research was determining the tasks and clarifying the direction of the Justice and Progress Fund in the future. Therefore, in a process of identifying dualities of orientation, an attempt has been made to prepare the basis for developing a conceptual model to form the Justice and Progress Fund.Based on the summation of the opinions of managers and elites in this field, the research groups of the Development and Foresight Research Center, the Management and Planning Organization of the provinces of the country, and the expert opinion of the researcher based on the different parts of the article, and the opinions of all the interviewed people, the two options of continuing the Omid Entrepreneurship Fund and creating the Iran Justice and Progress Fund were taken into consideration. Although the Justice and Progress Fund has been examined in detail as the main idea of this research and placed in the center of attention of the study, the continuation of the Omid Entrepreneurship Fund is proposed as another option based on the opinions of experts in this field. The disadvantages of the Omid Entrepreneurship Fund have been evaluated to be far more than its merits. In general, based on the evaluations of growth and development funds and the views and opinions of experts and managers, it is possible to realize the Justice and Progress Fund. The key orientations in the design of the Justice and Progress Fund include emphasis on providing financial resources for non-governmental and second-optimal projects with specific criteria and conditions, creating financial leverage to use private sector resources, supporting businesses with high added value, supporting bases of investment and provision of facilities, financing small and medium-sized projects, emphasis on the method of providing domestic financial resources, allocation of facilities to projects based on prioritizing economic growth (realization of 8 percent growth) based on the national spatial development document, focusing on limited and specific goals, decentralizing and increasing the authorities of the Provincial Planning and Development Council, strengthening the local government, and the management and planning of the organization as a custodian institution.The coordinates of the Progress and Justice Fund are proposed in this section in the areas of activity limits, realization and monitoring, how to provide financial resources, how to allocate facilities to plans and projects and management structures (powers and infrastructure) among them some are mentioned:Completing and developing the production infrastructure in the provinces, developing transparent and program-oriented mechanisms for the allocation of financial resources of the Fund, emphasizing the provision of financial resources for non-governmental and second-optimum projects with specific criteria and conditions (allocating a maximum of 10 percent of the Fund's resources to governmental projects with high physical progress), creating a separate account in the province to inform the governors of the amount of resources and expenses in the fund, decentralization and increasing the authorities of the Provincial Planning and Development Council (allocating the fund resources to the provinces), further opening the path to the formation of the local government and the proposed trustee body for the Justice and Progress Fund, planning and budget organization of the country and at the provincial level, and altering the management and planning organization of the provinces into a provincial planning and development council (because the chairmanship of the council is the governorâs task; while enjoying the cooperation and support of the governors, the development priorities of the province will also be taken into account).
Abstract Performance management in the public sector is both multifaceted and convoluted. This is particularly pertinent in hospitals, which are complex institutional organizations. Our paper explores the key drivers compelling Irish public acuteâcare hospitals to monitor their performance. The context of our study is located against the unique historical backdrop of the Irish health service, whose evolution over time reflects religious control, underfunding by the State and reliance on a decentralized structure up until the early 2000s. This study was conducted during 2009â2010, in the aftermath of the financial crisis of 2008â2009. Interviews were conducted with members of the hospital executive management team, comprising clinical and nonclinical senior managers, using the framework of Kelly et al. (2015) to explore and analyze respondent perspectives. We propose that a combination of key forces, emanating from new public management, the institutional environment, and its constituent elements spurs hospitals to monitor their performance. The confluence of these forces reveals a perceived change in the institutional logic underpinning hospital performance management. This change involved the substitution of autonomous clinical decisionâmaking for a more teamâbased managerial logic whereby clinicians engaged as part of a multidisciplinary executive unit and accepted responsibility for hospital performance. This paper contributes to the literature on performance management in public services and, more specifically, builds on and addresses the paucity of research on Irish acuteâcare hospitals.
Abstract Public managers and administrators confront the increasing scale and prevalence of crises. Despite some deployments, blockchain applications by governments for emergency management and response management have only begun to scratch the surface. To facilitate greater awareness of the promises and challenges of blockchain applications to the public sector, we consider the ways in which distributed ledger technologies can improve emergency and crisis management across the dimensions of transparency, public trust, and social equity. The article ends with a call for a public administration research agenda on blockchains for emergency and crisis management.
Ali Shahaab, Imtiaz Khan, Ross Maude, Chaminda Hewage · 5 authors
Despite the increasing interest and exploration of the use of blockchain technology in public service organisations (PSOs), academic understanding of its transformative impact on the operational excellence of PSOs remains limited. This study adopts an action design science research methodology to develop a proof of concept (POC) blockchain based application for Companies House, a government agency that is registering companies across UK. The application addresses the operational challenges of Companies House as well as issues citizens face when accessing its services. We draw from the public value framework proposed by Twizeyimana and Andersson (2019) and demonstrate the significance of the emerging blockchain technology in relation to their democratic practices based on six dimensions. We further discuss the related challenges and barriers for its implementation and evaluate the POC with the stakeholders of Companies House. We also present an illustrative case study, where we explored the appropriateness of the POC in relation to the draft legislation, âRegistration of Overseas Entities and Beneficial Ownersâ (ROEBO) bill which proposes the introduction of a register of the beneficial owners of overseas legal entities that own real estate in the UK. Our research is one of the few studies that will provide in-depth empirical insights about the relationship between blockchain and operational excellence of PSOs.
The purpose of this study is to identify recognition of the relationship between public officials and intergovernmental rulership through decentralization. Through the analysis of the mediating effects of the cooperative relationships, the study was able to derive direct and indirect influences and relative priorities of each factor. For this study, the data of the â2020 Public Officials Perception Survey on Intergovernmental Relationsâ from the Korea Institute of Public Administration and Security was used and applied to: have a regression analysis, analyze through Baron & Kenny(1986) 3-steps, and verify the mediating effect through the Sobel-test. The analysis verified that all factors of decentralization do carry a significant influence on âcooperative relationshipâ, but only âfinanceâ and âdispute settlementâ were known to have specifically significant influences on ârecognition of intergovernmental relationsâ, and âcooperation.â The result analyzed that the rest of factors carry a partial mediation that has a direct and indirect influence through mediation. Factors influencing the perception of intergovernmental relations are determined by the relative views of each government. The importance of finance is permanent and unchanging throughout, and dispute settlement due to the increase in regional administration(decentralization) and policy linkage reflects complex and diversified social flows. Thus, the study showed a need for advanced administrative skills and capabilities. Based on these circumstances, a cooperative relationship can be formed, but more importantly, the establishment of a cooperative relationship in cultural aspect rather than a policy-level must be done in order to form recognition of a rational relationship between governments by decentralization.
Public value theory was conceived in a time before the far-reaching consequences of the digital era were fully realized, without sufficient explicit consideration of the dynamic and disruptive shifts that might occur on the technological frontier, especially when driven by civil society. As such, the disruptive and citizen-driven nature of many digital technologies, such as cryptocurrencies and the blockchain, has yet to be incorporated into the public value discourse. This article examines the relevance of the public manager to disruptive digital innovations, arguing that value creation is a function of addressing the digital aspirations of citizens, and making technological disruption into a conduit for public value co-creation that is driven by citizens. This is accomplished through mechanisms such as regulatory and policy initiatives that ensure public managers strike a balance between innovation and accountability. It theorizes this using Mooreâs strategic triangle to foresee a role for proactive engagement by public managers in citizen-driven public value creation that balances innovative impulses and stronger accountability.
Abstract Corporatizationâarguably as important as privatization regarding public service reformâremains an underâresearched topic in Public Administration. In this paper, we explore the extent to which the implementation of different types of corporatization strategies can be explained by the ideology of the ruling party in the Spanish public healthcare sector, selected for study because this sector was subject to reform, particularly, decentralization and marketization. To do so, we use countâdata regression models to analyze secondary data from the 17 Spanish regional governments for the period 2003â2017. Our estimates reveal that rightâwing controlled regional governments exhibit a clear preference for corporatization strategies that actively involve the private sector, such as PublicâPrivate Partnerships and Public Finance Initiatives. Further analysis suggests that leftâwing governments are positively associated with the implementation of corporatization strategies that do not involve the private sector, such as the creation of Public Enterprises and Public Entities. These results are robust to a variety of alternative specifications.