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

By Steven B. Webb, Marcelo M. Giugale

The 3 forces of democratization, decentralization, and improvement have swept internationally the decade and redrawn the maps of politics, energy, and prosperity. sleek Mexico has been absolutely engaged within the trio, making it a wealthy case research. lately, better political pageant has redistributed decisionmaking throughout all degrees of presidency, making the govt extra in charge to the common citizen. It has additionally given subnational governments a renewed position as financial brokers. The taxation, spending, borrowing, and associations of Mexican states and municipalities are actually more and more below the rigor of industry self-discipline. The mixed, nearer scrutiny of electorate 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 power present. This booklet is the fabricated from the analytical paintings of a big variety of specialists, Mexican and overseas. within the booklet, the specialists record Mexico's decentralization adventure; conceptualize its major tendencies, rules, and ideas; and produce it into the sunshine of foreign comparability. They distill serious classes and demanding situations which are of relevance for Mexico, for Latin the USA and, ordinarily, for nations which are embarking on a long way achieving decentralization efforts. This renders the amount a tremendous contribution to our wisdom and considering during this zone; and a well timed one, for the reason that decentralization is an irreversible method that's prone to proceed occupying policymakers for future years.

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Prevention and Resolution of Conflicts Sound intergovernmental coordination will require specific institutions for negotiations and conflict resolution, because effective decentralization requires more than the design of revenues, transfers, borrowing, and responsibilities. No system can foresee and specify everything in advance. Issues and disputes arise that need to be settled, and the method for doing this has important incentive effects for how the system actually works. Like other decentralizing countries, Mexico has a growing number of interjurisdictional conflicts.

A vision of Mexico's path and options in decentralization then emerges and is articulated for the short, medium, and long term. Institutions for Decentralization The key institutional issues in decentralization are reinforcing confidence in decentralization among key stakeholders, improving intergovernmental coordination and conflict resolution, strengthening and democratizing the process for control and accountability, coordinating the multilevel budget process, regularizing the distinctions between municipalities with different administrative capacities, implementing cooperative capacity building, and dealing with the peculiarities of the Federal District's relationship with its neighbors and the federal government.

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. In this overview, we distill the main messages that the authors deliver in those papers. The discussion here is organized around five themes: (1) institutions for decentralization, (2) spending and service delivery, (3) subnational taxes and revenue, (4) intergovernmental transfers, and (5) subnational borrowing and debt management.

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