"Centralised versus decentralised decision-making: the case of New Zealand irrigation"

Abstract

Prior to 1990 community irrigation schemes in New Zealand were developed, owned and controlled by the government in a centralised manner. In 1990 schemes were sold to farmer owned companies. Today scheme development, ownership and control are decentralised. This paper analyses these two distinct institutional arrangements. The critical features of these alternative administrations are described. Comparisons are made in terms of information flows, agency problems and ownership, and expectations and decision-making. Today's decentralised administration has produced a more efficient sector but further improvements are possible.