Dynamics in Governance: decentralization and local governanceDECEMBER 11/ 2013

CRISTINA MEDINA

JUAN CARLOS ARCINIEGAS

What is descentralization?

A process of state reform composed by a set of public policies.

Transfer responsibilities,

resources, or authority from higher

to lower levels of government.

It depends on the context of a specific

type of state

According to Falleti (2005: 328) decentralization is:

Does decentralization always increase the power of governors and mayors?

Has decentralization shift in the balance of power among, president, governors and mayors?

Why different counties have evolved in different ways?

If the process is lead by National government it starts with

administrative decentralization, followed by fiscal decentralization

and finally political decentralization.

If the Subnational interests prevail political decentralization take place at the beginning, followed by fiscal

decentralization and finally administrative decentralization

Depends upon the bargaining power between national and subnational governments.

Between these extreme cases we can found different arrangements that depend of the power of the actors.

Subregional path

National path

Why Argentina and Colombia had such a radically different outcomes if they implemented decentralization policies

during the same period

Colombia the subnational path to decentralization

Civic strikes: 200 between 1971 and 1985. Caused by the discontents of the lack or bad administration of basic public services.

It revealed the subnational pressures that trigger political decentralization (First mayors and the governors). And the creation of Colombian Federation of Municipalities which lobbied the extension of fiscal decentralization that was incorporated in the 1991 constitution.

The administrative decentralization came from the national executive in 1993.

This process highlight the importance of guarantying fiscal resources necessary to afford the cost of transferred services.

The final outcome of the process is that subnational government was empowered.

Power Fiscal Administrative

Argentina the national path to decentralization

Started with administrative reform in 1978 when military junta transferred all national primary education to the provinces without fiscal capacities.

It had disastrous fiscal consequences for the provinces and governors were forced to beg for discretionary transfers.

In 1988 fiscal decentralization took place but it did not last long because National executive push forward a second round of unfunded administrative decentralization (Secondary and adult schools).

Political decentralization took place in 1994, just for the province of Buenos Aires but the rest of the political decentralization proposal did not pass due to political pressures of national executive.

Administrative Fiscal Power

Main Argument

Decentralization process does not always transfer power from National government to governors and mayors it depends on the sequence in which the administrative,

fiscal and political decentralization evolve. This sequence depends on the intergovernmental balance of power which determine an increase, decrease or unchanged

level of power of subnational actors.