East Asian countries, which have adopted a central regime for their economic development, now implement decentralization with rather radical examples found in Indonesia and the Philippines. While decentralization is generally considered desirable in reflecting local needs, it affects infrastructure negatively in terms of diminished economies of scale and externality,expansion of regional inequality, weak human capacity, financial shortfalls in local government, and rent-seeking of local power elites. In order to overcome these negative impacts, it is necessary to choose a technicallyappropriate and practically workable solution of infrastructure accordingto the level of government in order to enhance capacity, to overcome financial constraints and to reinforce the accountability of the local government. For the covering abstract see ITRD E139491.
Abstract