This book is the result of the 5th Indonesian Regional Science Association (IRSA) International Conference held on 18-19 July, 2003 at the Savoy Homann Bidakara Hotel, Bandung, Indonesia. The conference theme was “Regional Development in a Decentralized Era: Public Services, Poverty and the Environment”. This book focuses on several sub-themes of the growth, equity and environment aspect of regional development namely on institutions and governance, the financing of regional development, poverty and income inequality, and sustainable development. The book is based on selected papers presented at the IRSA 5th International Conference which meets the theme of this volume, and which has not been published elsewhere.