The answer: "Do both simultaneously"
The traditional approach to decentralization has been to build capacity before transferring responsibilities or revenues. This cautious method was fueled by worries about irresponsible spending, local corruption, regional inequities, and service collapse as well as many central governments’ reluctance to devolve authority. Some authors such as Bahl and Linn even argued that the lack of local capacity, among other factors, made decentralization ineffective and even undesirable in developing countries.