Decentralization reforms aim to improve governance by distributing authority. This article explores whether such reforms increase cooperation among public officials in practice.

We compare collaboration across decentralized and centrally-administered municipalities in Honduras. Using a quasi-experiment created by recent health sector reform, along with behavioral games and social network surveys, we find decentralization is linked to greater inter-agency cooperation.

Specifically, when allowed communication, health workers in decentralized areas contributed more significantly to public goods than counterparts in centralized settings. This boost stems partly from two factors:

* Increased frequency of interactions across different government levels.

* Stronger personal ties between officials from various departments.

These findings suggest decentralization reforms can reshape bureaucratic networks, potentially enhancing administrative capacity crucial for effective governance in developing nations.