International Journal For Multidisciplinary Research

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Volume 8 Issue 3
May-June 2026

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Decentralized Governance and Economic Justice: A Comparative Study of Local Institutions and Inequality in Developing Economies

Author(s) Ms. Deepa S, Dr. Rajdeep Kaur
Country India
Abstract Decentralization is often justified as a governance reform that improves service delivery by shifting authority closer to citizens. However, its distributive effects remain uneven across developing economies. This paper challenges the assumption that decentralization inherently promotes equity by arguing that outcomes are shaped by fiscal design rather than institutional proximity alone. Specifically, it demonstrates that decentralization without redistributive fiscal architecture tends to reproduce existing inequalities.
The analysis adopts a comparative approach, drawing on evidence from Brazil, India, and sub-Saharan Africa to examine how different institutional arrangements influence resource distribution and access to services. It introduces the Decentralization–Justice Nexus (DJN Model) as a simple framework to explain how decentralization reshapes local power structures, which in turn affect redistribution and capability expansion.
The findings show clear variation. Brazil illustrates how rule-based fiscal transfers and participatory mechanisms can support more equitable outcomes. India reflects partial improvements in service delivery but continued inequality due to social hierarchies and limited fiscal autonomy. In sub-Saharan Africa, weak fiscal capacity and administrative constraints have restricted the effectiveness of decentralization.
The paper concludes that decentralization is not inherently redistributive. Its impact depends on how financial resources and institutional power are structured, with significant implications for achieving inclusive development.
Keywords Decentralization, Economic Justice, Fiscal Redistribution, Local Governance, Inequality, Sustainable Development
Field Sociology > Linguistic / Literature
Published In Volume 8, Issue 3, May-June 2026
Published On 2026-05-11
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E-ISSN 2582-2160
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