•Also, there are coordination failures between the central government and LAOs as the central government has been reluctant to decentralize ownership and control of public services.
•Centralized operation of public service such as education and healthhas created public institutions that are not accountable to the local population.
•The structure is therefore ineffective in responding to local interests.
•Also, many small LAOs are not financially viable and most of their budgets are spent on administration activities.
•Thus, LAOs do not have the capacity to effectively invest, operate, and deliver high quality public services.