Pranab Bardhan has contributed significantly to understanding the relationship between decentralized governance, corruption, and development in some developing regions like India. Consider the following statements about his perspective:

 

Statement 1: According to Bardhan, decentralization can alleviate corruption and foster development, provided it comes along with adequate checks and balances to prevent local elites from monopolizing power.

 

Statement 2: Bardhan argues that the lack of transparency and accountability in centralized systems contributes to corruption and poor service delivery, underlining the need for effective decentralization.

 

Which of the following is correct?