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Centralized or a decentralized government

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  1. Should anti-poverty programs be provided by a centralized or a decentralized government? What are the trade-offs involved in providing anti-poverty programs via centralized versus decentralized authorities?
  2. Imagine that a poor country, Poorland, wants development assistance and has applied for two development projects to a donor country, Richland, for possible financing. The two projects are: a) subsidizing unskilled labour migration from Poorland to Richland, and b) subsidizing food for works program in Poorland. Richland knows that the government of Poorland could be corrupt. Based on this, if Richland wants to finance one project out of two, which one should it finance, and why?

Reference no: EM131280937

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