Beyond the Center: Decentralizing the State (Latin America by Shahid Javed Burki

By Shahid Javed Burki

'Decentralization is reworking the constitution of governance in Latin the US. for the reason that 1983, all yet one of many greatest nations within the quarter have visible a move of strength, assets, and obligations to subnational devices of government.'

This dispersion of strength is an international pattern because of many alternative political, fiscal, and social components. notwithstanding, as this development maintains, the significance of responsibility, figuring out who's liable for what, and giving these held liable the authority to convey effects. In mild of those vital concerns, this record examines the influence of decentralization and its impact at the potency of public prone, on fairness, and on macroeconomic balance. It additionally addresses the difficulty of politics and notes that winning decentralization calls for greater than sturdy principles. these principles has to be appropriate with incentives. hence, the document seems to be on the broader algorithm that impact political habit, focusing rather on electoral platforms and political events.

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Extra resources for Beyond the Center: Decentralizing the State (Latin America and Caribbean Studies)

Sample text

Each team member, in turn, benefited from background papers and advice provided by specialists in their respective fields. In particular, we wish to acknowledge Fernando Rojas, whose survey of decentralization in Latin America provided the basis for Chapter 1; José Luis Irigoyen and Francisco Wulff, who assisted in drafting Chapter 6; and Tarcisio Casteñeda and Girindre Beeharry, who assisted in drafting Chapter 5. The group benefited from initial discussions at a workshop on the topic, carried out with lead economists, lead specialists, and staff from the LAC regional office of the World Bank.

Decentralization shifts the structure of local accountability from central government to local constituents. Decentralization, in contrast, preserves the hierarchical relationship between central government and field staff. Privatization introduces the profit motive as an influence on behavior. Although in practice the three can be employed simultaneously, their political, fiscal, and administrative implications are quite different. Decentralization must be considered unique. Page 4 Widening Disparities In theory, decentralization may also widen regional disparities in the provision of public services.

Decentralization must be considered unique. Page 4 Widening Disparities In theory, decentralization may also widen regional disparities in the provision of public services. Such disparities, per se, are not undesirable. As with private goods, effective demand for local public services is likely to vary with income. But disparities matter when they have distributional implications. Thus disparities in spending on primary education or primary health may be cause for concern. If the financing of education or health is decentralized, spending levels will reflect variations in local tax bases, rather than the allocations of centralized government ministries.

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