Fiscal decentralization: increasing social cohesion among widely disparate territorial units

OSCAR CETRANGOLO; ARIELA GOLDSCHMIT

Decentralization and Reform in Latin America

Edward Elgar Publishing Ltd

Lugar: Cheltenham; Año: 2014; p. 38 - 69

In the last two decades, many governments of Latin America have embarked upon reform processes which modify the degree of power and the competencies granted to different government levels. Such processes, generally recognized under the common denominator of ?decentralization?, followed different paths depending on the countries in which they were implemented. The decentralization process in Latin America has a particular form influenced by preexisting institutional, economic and social features. Some of these features have been extremely critical in the design and results of the decentralization process. These include: high institutional heterogeneity; unequal personal income distribution; unequal regional distribution of income; high specialization in natural resources; high urban population and informal sector.