Association for Public Policy Analysis & Management

Fiscal decentralization is an appealing mechanism for bilateral assistance because of its ability to promote macroeconomic stability, efficient governance and economic growth. Moreover, Haiti’s more recent progress in terms of fiscal decentralization is largely credited to the United State Agency for International Development’s (USAID) decentralization programming throughout the country over the past ten years. Consider that the municipality of Saint Marc was able to increase its property tax revenue by 240 percent after participating in USAID’s Limyè ak Òganizasyon pou Kolektivite yo Ale Lwen(LOKAL) initiative.  At the same time, it is not readily apparent to what extent these enhancements in local revenue have actually improved local expenditures for public services in localities like Saint Marc that have benefited from these bilateral interventions.

 My research therefore evaluates the extent to which USAID fiscal decentralization measures have improved local service delivery in Haiti. First, looking at the period between 2007-2011 of the original LOKAL program and then from 2013 to 2015/6 with the enhanced LOKAL+, my study compares the municipality of Saint Marc to a similar jurisdiction that has not benefited from USAID’s decentralization programs. Secondly, this research assesses pre- and post-USAID decentralization efforts in Delmas – a municipality credited with being Haiti’s most successful example of local governance – in order to assess whether or how USAID has contributed to this achievement.

By way of these analyses, my study will ultimately contribute to a better understanding of fiscal decentralization’s utility as a development tool specifically for the Haitian state.