The Devolved Service Delivery Study(DSD) is the product of an agreement between the World Bank,the Asian Development Bank, and the Department forInternational Development (the United Kingdom), in responseto a request from the Government of Pakistan that theagencies review progress toward improving service deliverythrough decentralization. Pakistan's far-reachingdevolution initiative has been designed with three broad andinter-related objectives in mind: To inject new blood into apolitical system considered to be the domain of historicallyentrenched interests; to provide positive measures enablingmarginalized citizens--women, workers, peasants-to accessformal politics; and to introduce a measure of stabilityinto a turbulent political scene by creating a stronger lineof accountability between new politicians and localelectorates. Underpinning the political strategy were othertechnical objectives: improved delivery of social services;better determination and enforcement of property and laborrights and regulation of economic activities; and access tojustice in the form of improved performance by localadministrations, courts and police, with greater awarenessof basic human rights protected under devolution. Based onan empirical study of 6 districts and 12 municipalities(Tehsil Municipal Administrations) (TMAs), this paperevaluates the extent to which the new structure hassucceeded in creating the incentives necessary for localgovernments to achieve at least some of the service deliveryobjectives. This report notes that remarkable progress hasbeen achieved. New local institutions with new structuresfor local government, new arrangements for intergovernmentalsharing of resources, new electoral arrangements, new rulesfor government formation and dismissal and new opportunitiesfor citizens to participate in the affairs of governmenthave all been created. At the same time as the devolutioninitiative was being implemented, the government alsoimplemented significant reforms in tax, trade, deregulationand privatization, the banking sector, anticorruption,restructuring federal and provincial legislatures andresponding to gender concerns.