The Effects of Decentralization on Local Governance: Evidence From Ukraine

Decentralization is often promoted as a means of improving public service delivery, strengthening accountability, and enhancing citizen engagement. However, its effects vary widely across contexts. This paper examines how decentralization reforms shaped attitudes toward public service provision in Ukraine. Using a unique panel survey from nearly 200 Ukrainian communities, we show that decentralization increased satisfaction with healthcare and education. Investigating the mechanisms behind this result, we demonstrate that in the Ukrainian case, decentralization improved public service provision not by promoting cleaner governance (i.e., less corruption) or greater spending, but rather because reformer communities – particularly in urban areas – used funds more effectively. Cross-national analysis of 28 European countries confirms that citizens in more decentralized systems report higher satisfaction with locally provided services. Our findings highlight the importance of local administrative capacity in realizing the benefits of decentralization, offering insights for both democratic reformers and post-conflict reconstruction efforts.