Abstract It needs considering local governments' incentives and behavior patterns in antipoverty program delivery to study the antipoverty policies under fiscal decentralization in developing countries. In some developing countries, local governments' officials are appointed by the central government. Due to supervisory defects of central government, local governments' officials seek illegal income through inflated costs and underground transaction in antipoverty program delivery. In other developing countries, local governments' officials are elected by local residents. But due to low levels of literacy and political consciousness of the residents, local governments are easily captured by the rich, and give more attention to the rich in antipoverty program delivery. This article describes the antipoverty behavior of local government in appointment system and election system respectively. It argues that large-scale antipoverty policies are better-targeting in appointment system, and vice versa in election system. It also provides some suggestions for the effective implementation of antipoverty policies in developing countries.
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