Decentralization, Local Governance, and the Effectiveness of Public Investment in Rural Areas of Lualaba Province, Democratic Republic of Congo

Abstract

This study analyzes data from 358 rural households across 15 villages to examine how decentralization, public investment effectiveness, and governance innovation interact to shape institutional performance. The statistical results show that decentralization has a significant positive effect (β = 0.42, p < 0.001) on public effectiveness, particularly where institutional support and citizen participation are strong. Public investment effectiveness varies widely (mean = 63.4, SD = 14.7), with infrastructure quality (r = 0.89) emerging as the main determinant. ANOVA results indicate significant inter-village differences (F(14,343) = 5.72, p < 0.001), confirming uneven investment outcomes. Moreover, governance innovation diffusion moderates the decentralization–effectiveness link, enhancing institutional performance by up to 22% in highly innovative villages. These findings emphasize that combining decentralization with innovation and participatory governance leads to more equitable and sustainable rural development. Policy actions should prioritize capacity building and digital governance platforms to consolidate these gains.