Research of institution building and evaluation on decentralization in developing munhies

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1) Decentralization used as a magic word meaning reform vaguely, according from political science and public administration study. There are cases that decentralization reform unrelated to a policy objective or disregarded the political and economical context. Thus, minus sides and side effects of decentralization have been seen in many cases. However, decentralization reform may activate local_politics in an area and pluralize power.2) The influence of decentralization reform is seen in regional economy, according to economic analysis. Particularly, in investment, decentralization causes the situation where the conditions of investment are different within one country. There are areas, where decentralization in investment introduced by decentralization increase foreign investment; and there are areas where foreign investment were decreased because of local political decomposition and local regulation. Also in the small and medium-sized enterprises which domestic context influences more, the influence of decentralization is clearly seen.3) Law studies also saw points 1)and 2). Particularly, we saw decentralization of investment-related regulation and active enactment on local politics.4) However, the evaluation of decentralization has not yet established. Because 1) decentralization itself has been politically regarded as a right policy regardless of its content, 2) decentralization is, in reality, one of many factors which may affect policy results, and 3) we have not seen the results in each policy areas, we have not yet found the established way to evaluate decentralization.