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The public sector in developing and transition countries must function more effectively and efficiently in pursuit of development and poverty reduction ambitions. This cannot be done without considering the critical role of the local public sector, since most (pro-poor) public services are delivered at the local level. This paper proposes a comparative decentralization assessment framework which guides a rapid assessment of a country's local public sector, including its political-administrative structures, its system of intergovernmental relations and the financing and functioning of the countrys decentralized local governments.