Bachelor thesis | Liberal Arts and Sciences: Global Challenges (LUC) (BA/BSc)
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In recent decades there have been many decentralisations of governance tasks to subnational governments, sparking much debate among academics and policymakers. However, consensus on the effect of...Show moreIn recent decades there have been many decentralisations of governance tasks to subnational governments, sparking much debate among academics and policymakers. However, consensus on the effect of decentralisation on public service delivery is lacking, likely due insufficient empirical analysis in developed countries and lack of attention to micro-level and institutional factors. Moreover, most research focusses primarily on productivity and efficiency outcomes, neglecting quality concerns. This study fills this knowledge gap by assessing factors determining abilities of local governments to successfully implement decentralisation policies. The case studied is that of decentralisation of social care to Dutch municipalities under the Social Support Act of 2015. Effects of local physical, human, and fiscal capital will be examined through regression analyses of all 355 Dutch municipalities over the period 2017-2019. In doing so, it addresses a lacking understanding of determinants of local government capacity in the Netherlands. Findings indicate Dutch municipalities are constrained in service delivery by available physical capital. Tax bases provide insufficient financial resources and municipalities significantly rely on block grants to cover costs of service delivery. Moreover, expenditures of municipalities increase after decentralisation without resulting in increased quality of care. Implications of this study include need for micro-level data on local human capital levels and objective measures of quality of local public services. However, it is also concluded that data-driven policy analysis should be done carefully due to difficulty assessing determinants of local government capacity and interdependence between factors.Show less
