Ensuring accountability of local functionaries for effective delivery of basic social services has been a perennial problem of development. Since the poor have limited prospects of 'exit', 'voice' alone works to ensure effectiveness of service delivery. Accountability of lower-level functionaries to superiors in a vertical line ministry is rarely effective. The paper spells out a model of deep democratic decentralization that has been demonstrated to work in a number of countries. Copyright © 2005 John Wiley & Sons, Ltd.