Question

A potential disadvantage of decentralized planning is the risk of:

• A. Over-reliance on central government funding.
• B. Lack of standardized development goals across regions.
• C. Corruption and elite capture at the local level.
• D. Inefficient resource allocation due to information asymmetry.

Answer 1

Answer:

C. Corruption and elite capture at the local level.

• If local institutions are not strong or transparent, powerful local elites may seize control of the planning process and resources for their own benefit.