http://www.imf.org/external/pubs/ft/wp/2000/wp00116.pdf

The theoretical literature identifies three channels through which this can happen. (Au)The results have four important policy implications in light of the dominant role played by governments in the provision of health care and education services. First, improvements in indicators of health care and education services do not necessarily require higher public spending. It is equally, if not more, important to institute transparent procurement procedures and enhance financial accountability of public spending. Second, it is likely that a reduced level of corruption in the provision of services would help improve their quality. This, in turn, would induce individuals to use these services more intensely and pay official charges for their provision. Third, conditions that facilitate private sector entry into the provision of public services would help curb the monopoly power of government service providers and limit their ability to charge bribes. Finally, participation of the poor in the decisions that the allocation of public resources would mitigate corruption possibilities. Empowerment of the poor would thus limit the monopoly power exercised by the government officials responsible for the provision of public services and outputs.