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These results are in line with existing evidence from the Education Sector Study,20 which highlights the potential for important economies of scale in both primary and secondary education. However, given the sparsely dense population in Madagascar, a large fraction of public primary 19. Mistiaen et al. (2002). The fact that the poverty data dates back to 1993 calls for some caution in the interpretation of the results. However, despite the fact that the census and household are from 1993, the poverty mapping exercise is still meaningful.

In practice, most of these control functions are constrained by cumbersome procedures and a general focus on ex ante (at the stage of budget commitments) rather than on ex post controls. As a consequence, there is persistent evidence of leakage of administrative funds in deconcentrated line agencies; the leakages are primarily caused by procurements at above-market prices and the failure to distribute goods to local service facilities. 13 Regional Planning Bodies In many countries that have decentralized to the local level, there is a tendency to regroup local functions at the regional level.

Given the high variability in their poverty incidence across districts a uniform allocation to districts results in regressive expenditures. These results are in line with existing evidence from the Education Sector Study,20 which highlights the potential for important economies of scale in both primary and secondary education. However, given the sparsely dense population in Madagascar, a large fraction of public primary 19. Mistiaen et al. (2002). The fact that the poverty data dates back to 1993 calls for some caution in the interpretation of the results.

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