Transition to a more democratic organization of the political environment led to the adoption of four laws in 1998 - Decentralization Laws - that provide for local governments' semi-autonomy, and define the overall context in which decentralization would occur, outlining the principles for implementation of the decentralization process. The report intends to create a platform for discussion, and consensus building in the subject of decentralization, including the preparation of a public sector capacity building program. Main findings outline the need to legally establish the number of tiers of branch offices for central line ministries, and, clearly define the roles of regional, and provincial branch offices (including the relation between branch offices) to avoid probable redundancies. Yet, insufficient management capacity within branch offices may jeopardize the vital work of identifying, and tracking resources to be transferred, aggravated by a weak personnel management concerning the appointments to be decided by the line ministry central administration. In addition, the financial management is plagued by limited ministry responsibility for its own budget, by limited responsibility given to branch offices, and, by limited planning and monitoring, all conducive to inefficient central financial control systems. The report intends to diagnose possible solutions in service delivery at the local level, highlighting public sector management reforms as its main focus.