This book is about public institutions and their capacity to provide services to the public. In comparing the institutional capacity of different local government agencies to deliver services to the public, the book examines the institutional capacity of local government agencies in Indonesia and the role internal and external factors play in determining the service delivery capacity of public organisations. Internal factors refer to the organisational structure, managerial practices and the management of human resources in public organisations. External factors refer to the degree of bureaucratic and political accountability as well as the level of competition experienced by government agencies. This book enriches the existing development literature by developing our understanding of the ways in which internal and external factors strengthen or weaken the capacity of public sector institutions.