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

By Steven B. Webb, Marcelo M. Giugale

ISBN-10: 0821347322

ISBN-13: 9780821347324

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 examine. lately, more suitable political festival has redistributed decisionmaking throughout all degrees of presidency, making the govt. extra liable to the common citizen. It has additionally given subnational governments a renewed position as fiscal brokers. The taxation, spending, borrowing, and associations of Mexican states and municipalities at the moment are more and more less than the rigor of industry self-discipline. The mixed, nearer scrutiny of citizens and financiers is making a new incentive framework for policymakers-a framework the place invaluable reforms develop into either inescapable and, extra importantly, a perceived resource of strength present. This publication is the fabricated from the analytical paintings of a big variety of specialists, Mexican and overseas. within the publication, the specialists record Mexico's decentralization adventure; conceptualize its major developments, regulations, and innovations; and convey it into the sunshine of foreign comparability. They distill severe classes and demanding situations which are of relevance for Mexico, for Latin the USA and, quite often, for nations which are embarking on some distance achieving decentralization efforts. This renders the amount a huge contribution to our wisdom and pondering during this quarter; and a well timed one, in view that decentralization is an irreversible approach that's prone to proceed occupying policymakers for future years.

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Separating the assignment of responsibilities for maintenance and operation of infrastructure facilities from responsibility for capital investment has been a persistent problem in Mexico. For example, municipalities are in charge of maintaining school buildings, while the federal and state governments carry out most capital investments. This dichotomy often leads to insufficient levels of both maintenance and infrastructure investment. Each level of government can blame the other for not doing its part, and each has an incentive to refrain from using its own resources, with the expectation that the other levels will give more.

Mexico has already started down the road to decentralization, with its own model being constructed in Mexico, as it must be. Some actions already taken seem desirable and should be sustained and strengthened, such as the end of discretionary transfers and support for more uniform and comprehensible state accounting and public reporting. Others seem less desirable. This book is a collection of papers that draws on worldwide experiences Page 4 with decentralization in order to focus on what is needed to develop a coherent and sustainable decentralization strategy in Mexico, and the necessary institutional underpinnings for it.

The details of the problem and the appropriate solution may be different for municipalities and for states. 2 International Experience with Differential Treatment of Municipalities Experience in Latin America shows that, when responsibilities of subnational units are not explicitly differentiated according to effective fiscal and/or management capacity, de facto differentiation takes place, often in ad hoc, chaotic ways. It is therefore advisable to explicitly differentiate among subnational units while at the same time establishing the standards to move from one category to another.

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Achievements and challenges of fiscal decentralization: lessons from Mexico by Steven B. Webb, Marcelo M. Giugale


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