The Local Alternative: Decentralization and Economic Development

I Decentralization and Local Economic DevelopmentIntroductionExploring Conditions for Local Economic Development in Decentralized Systems of GovernmentThe Many Faces of Decentralization and DemocracyOrigins and Turns: From Global to LocalLocal Economic DevelopmentProgress and Pitfalls: Seven Core IssuesFirst Element: National Policy and StrategyNational Policy and Local Economic DevelopmentSecond Element: Organization of the StateThird Element: Functional ResponsibilitiesFourth Element: FinancingFinance and Local Economic DevelopmentFifth Element: Mechanisms of Participation and AccountabilityParticipation and Local Economic DevelopmentSixth Element: Institutional CapacitySeventh Element: Growing Role of City RegionsLocal Economic Development and City RegionsConclusions: Local Economic Development in Decentralized DemocraciesMapping the IssuesPolicy Challenges and RecommendationsLearning StrategyNew Roles for the International Development InstitutionsNotesThe Experience of Decentralization and Local Development in Latin AmericaFoundations of DecentralizationEvolution of Decentralization in Latin AmericaEconomic Growth and Degree of UrbanizationDecentralization and Local Development in Latin AmericaConclusionsNotesAlternative Decentralization Models and the Chilean ExperienceThe Path of Decentralization in ChileStudy PerspectivePrincipal ContentsAlternative Approaches on DecentralizationBasic DifferencesDecentralization and Economic EfficiencyThe ApproachesDecentralization Models and Subnational FinancesTypical ProblemsProgress of the Decentralization Process in ChileBasic Background of Subnational Institutionality in ChileDescription of Decentralization in ChileRecent ProgressWeaknesses, Risks, and Opportunities of Decentralization in ChileWeaknesses of the Decentralization ProcessA Particularly Risky Area: Municipal FinancesThe Relevance of a Municipal Fiscal PactNoteII Local ManagementIntroductionMississauga, Canada: From a Small Community to a Dynamic Urban CenterEffective Crisis ManagementTransparencyManaging the City Like a BusinessSustainable FundingCommunity ConsultationPromoting Local Economic DevelopmentLeading by ExampleCollaboration with Other GovernmentsConclusionsWashington, DC: Restoring the Capital of the United States1The ProblemsHow to Create an Investment ClimateConclusionsNoteCatalonia: Overcoming Budgetary Limits with Public-Private Partnership and Performance- Based BudgetingPolitical Organization and Powers of the Catalan GovernmentPublic Spending in Catalonia’s GeneralitatBudget Stability in a Restrictive ContextInvestment Funding Instruments with Private-Sector Partnerships4Toward Performance-Based Budgeting7ConclusionsNotesRevitalizing Urban CentersCharacteristics of the Latin American Urban CenterHistorical Evolution of the City CenterThe City Center during the Urbanization Process of the Twentieth CenturyCharacteristics of the URP EnvironmentUrban Revitalization and Economic Development ProjectsMajor Lessons from URPsIdeas for the FutureNotesMacroeconomic ImpactIntroductionDecentralization and Macroeconomic Control1Potential Benefits and Problems of DecentralizationMacroeconomic EffectsSubnational Political AutonomyAssignment of Spending ResponsibilitiesRevenue Decentralization and Vertical Fiscal ImbalanceDiscretion in Intergovernmental TransfersLevel of Debt Autonomy in Subnational GovernmentsConclusionsNotesLessons from the Argentinean Case of the 1990sA Decade of ChangeDecentralization within the Public SectorEconomic CyclesPublic ResourcesAssessment of PowersEffects on the Consolidated Fiscal BalancePublic DebtEmployment and Public SalariesAsymmetry in Spending and ResourcesPrivatization and DeregulationConclusionsFiscal Decentralization and Macroeconomic Performance1Institutional Environment for Macroeconomic ManagementInstitutional Setting for Monetary PolicyMonetary Management in Brazil: A Decade of Successful ReformsMonetary Management in China: Still Muddling ThroughMonetary Policy and Fiscal Decentralization: Some ConclusionsInstitutional Setting for Fiscal PolicyFiscal Federalism as a Bane for Fiscal PrudenceFiscal Federalism as a Boon to Fiscal PrudenceFiscal Policy Coordination in Mature FederationsLegislated Fiscal Rules: Do They Matter for Fiscal Outcomes?Fiscal Policy Coordination in Brazil: From Fiscal Distress to Fiscal Discipline—A Giant Leap ForwardFiscal Management in China: An Unmet ChallengeFiscal Policy Coordination-Some ConclusionsFiscal Decentralization and Fiscal Performance: Some ConclusionsNotesIV Subnational FinancingIntroductionThe Political Economy of Decentralization and Good Governance in Latin America1BackgroundClarifying Assignments: Who Does What?AccountabilityWhose Preferences?How Do You Establish Hard Budget Constraints?Own-Source RevenuesInadequate Transfer DesignThe Public Financial Management InfrastructureDo Public-Private Partnerships Help?Subnational Borrowing: Passing the BuckConclusionsNoteFinancing and Public Services in Belo HorizonteFiscal DecentralizationDecentralization of ServicesThe Health SectorThe Education SectorFinal ConsiderationsNotesReforming Mexico’s Fiscal Federalism1Motives for Fiscal ReformReformNoteSubnational Entity Credit-Risk RatingsHistory of Mexico’s Subnational Finance SystemThe 1999 Regulatory FrameworkMexico’s Experience Funding Infrastructure Projects Compared with International CasesMexico’s CaseNew Concessions SystemService Delivery ProjectsAsset MonetizationSome Considerations on SDP in Mexico’s Subnational SphereSubnational Entities Using New Financial InstrumentsNotesStructural Funds for Regional Development in the European UnionCharacteristics and FunctioningThe Different FundsThe Different Kinds of Beneficiary RegionsHow Do the Funds Work?Spain’s Experience with the EU Cohesion PolicyTransport InfrastructureCountries Converging?ConclusionsNotesV Competitiveness and GlobalizationIntroductionRegional Systems of Innovation in Latin AmericaDoing Business: How to Improve Local Competitiveness1MethodologyAdvantages of Subnational Doing BusinessProcedure and Participation of Local GovernmentsSpecific Examples in Mexico and ColombiaConclusionsNoteDecentralization, Competitiveness, and Globalization: Opportunities and ChallengesThe Entirety of the Conceptual FrameworkRequirements of Integration and GlobalizationThe Political Economy of Macroeconomic VolatilityInstitutions as the Origin of CompetitivenessConclusionsNotesVI Local Community ParticipationIntroductionDecentralization in Colombia and the Transformation of BogotaDecentralization in ColombiaPolitical DecentralizationFiscal DecentralizationAdministrative DecentralizationFinal Balance: Decentralization without the PeopleThe Transformation of BogotaRecent Governments in BogotaThe Challenges of TomorrowNoteThe Private Sector as a Promoter of Citizen Control in ColombiaSocial ParticipationPrivate Sector, Culture of Citizen Control, and Demanding AccountabilityBogota Como Vamos: A Project to Promote AccountabilityThe Ojo Con Bogota y La Region Program: An Effort toward Control by the CitizensNotesDecentralization and Governance: From Authoritarianism to National Dialogue in BoliviaThe Authoritarian MayorThe Democratic MayorNote
Next >