# **Contents**

|**1. INTRODUCTION ...................................................................................................................................................4**|
|---|
|**2. THEORY AND HYPOTHESES ............................................................................................................................6**|
|2.1 THEHYPOTHESES................................................................................................................................................7|
|_For each set we develop a list of empirical variables that could capture the expected relationship...................8_|
|_Impact of Contextual Factors and Initial Conditions...........................................................................................8_|
|_Characteristics of the decentralization process.................................................................................................10_|
|_Characteristics of central government/basin-level relationships and capacities...............................................11_|
|_The internal configuration of basin-level institutional arrangements................................................................14_|
|**3. THE DATA COLLECTION AND QUALITY ASSURANCE PROCESS.......................................................16**|
|3.1 RIVER BASIN ORGANIZATION DATA COLLECTION PROCESS................................................................................16|
|_Distributional Facts of the Sample RBOs ..........................................................................................................19_|
|3.2 DATA MANIPULATION........................................................................................................................................20|
|**4. EMPIRICAL ANALYSIS.....................................................................................................................................21**|
|4.1 THE EMPIRICAL MODELS....................................................................................................................................21|
|4.2 EMPIRICAL SPECIFICATIONS OF THE DECENTRALIZATION PROCESS AND ITS PERFORMANCE..............................23|
|**5. RESULTS...............................................................................................................................................................24**|
|5.1 PRINCIPALCOMPONENT RESULTS......................................................................................................................25|
|5.2 DESCRIPTIVE STATISTICS...................................................................................................................................25|
|_Econometric findings .........................................................................................................................................25_|
|_The interaction between the decentralization process and its level of performance..........................................33_|
|**6. INTERPRETATION OF THE RESULTS..........................................................................................................36**|
|6.1 IMPACT OF CONTEXTUAL FACTORS AND INITIAL CONDITIONS............................................................................36|
|6.2 CHARACTERISTICS OF THE DECENTRALIZATION PROCESS..................................................................................37|
|6.3 GOVERNMENT-BASIN RELATIONSHIPS...............................................................................................................38|
|6.4 INTERNAL CONFIGURATION OF BASIN-LEVEL INSTITUTIONAL ARRANGEMENTS.................................................39|
|**7. CONCLUSION, POLICY IMPLICATIONS AND EXTENSION OF THE ANALYSIS...............................40**|
|**REFERENCES ..........................................................................................................................................................43**|
|**ANNEX 1: ADMINISTERING THE RIVER BASIN SURVEY (REPORT PREPARED BY INBO) ..............46**|
|DIFFICULTIES ENCOUNTERED..................................................................................................................................46|
|_RBOs newly created...........................................................................................................................................47_|
|_Basin Committees...............................................................................................................................................47_|

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