Download Achievements and challenges of fiscal decentralization: by Steven B. Webb, Marcelo M. Giugale PDF

By Steven B. Webb, Marcelo M. Giugale

The 3 forces of democratization, decentralization, and improvement have swept across the world the decade and redrawn the maps of politics, energy, and prosperity. sleek Mexico has been totally engaged within the trio, making it a wealthy case learn. lately, more advantageous political pageant has redistributed decisionmaking throughout all degrees of presidency, making the govt extra responsible to the typical citizen. It has additionally given subnational governments a renewed function as financial brokers. The taxation, spending, borrowing, and associations of Mexican states and municipalities are actually more and more below the rigor of marketplace self-discipline. The mixed, nearer scrutiny of electorate and financiers is making a new incentive framework for policymakers-a framework the place useful reforms develop into either inescapable and, extra importantly, a perceived resource of capability present. This e-book is the made from the analytical paintings of a big variety of specialists, Mexican and overseas. within the ebook, the specialists record Mexico's decentralization event; conceptualize its major traits, rules, and innovations; and convey it into the sunshine of overseas comparability. They distill severe classes and demanding situations which are of relevance for Mexico, for Latin the United States and, ordinarily, for nations which are embarking on some distance achieving decentralization efforts. This renders the quantity an immense contribution to our wisdom and pondering during this region; and a well timed one, in view that decentralization is an irreversible technique that's prone to proceed occupying policymakers for years yet to come.

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Experiences where no agency is primarily responsible, as in Chile and Colombia, illustrate that the Ministry of Finance or the national planning office usually takes over when the process of decentralization is not clearly headed by another agency. Providing reliable information for the public discussion of federal, state, and local fiscal and financial policy, and evaluating the design and exchange of information; Designing, collecting, and disseminating key indicators for the implementation of decentralization, monitoring the changes of revenue and expenditure responsibilities, and evaluating the capacity of subnational governments to assume new responsibilities.

Thus far Mexico has improved its intergovernmental and intersectoral coordination largely through top-down mechanisms, such as conditional transfers and federal monitoring. 1. Coordination of Decentralization: Lessons in Latin America The Latin American experience with coordination of the decentralization process indicates the following lessons: 1. Horizontal, intersecretary agreements (national level) or conferences of governors, mayors, or finance secretaries (subnational level) have had only modest effects, generally restricted to a few specific policies.

The municipal share of public spending has also grown, although this trend is not as fully documented. This process is being driven by heightened political competition at all levels of government and by the desire of the federal government to include decentralization in its program for broadening political participation. Each country must, however, develop its own strategy of decentralization and its own particular institutional infrastructure in accordance with its history, its objectives, and the constraints it faces.

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