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Marcelo Giugale - Achievements and challenges of fiscal decentralization: lessons from Mexico

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    Achievements and challenges of fiscal decentralization: lessons from Mexico
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The three forces of democratization, decentralization, and development have swept the world over the last decade and redrawn the maps of politics, power, and prosperity. Modern Mexico has been fully engaged in the trio, making it a rich case study. In recent years, enhanced political competition has redistributed decisionmaking across all levels of government, making the government more accountable to the average citizen. It has also given subnational governments a renewed role as economic agents. The taxation, spending, borrowing, and institutions of Mexican states and municipalities are now increasingly under the rigor of market discipline. The combined, closer scrutiny of voters and financiers is creating a new incentive framework for policymakers-a framework where necessary reforms become both inescapable and, more importantly, a perceived source of potential reward. This book is the product of the analytical work of a large number of experts, Mexican and foreign. In the book, the experts document Mexicos decentralization experience; conceptualize its main trends, policies, and options; and bring it into the light of international comparison. They distill critical lessons and challenges that are of relevance for Mexico, for Latin America and, generally, for countries that are embarking on far reaching decentralization efforts. This renders the volume a major contribution to our knowledge and thinking in this area; and a timely one, since decentralization is an irreversible process that is likely to continue occupying policymakers for years to come.

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title Achievements and Challenges of Fiscal Decentralization Lessons - photo 1

title:Achievements and Challenges of Fiscal Decentralization : Lessons From Mexico
author:Giugale, Marcelo.
publisher:World Bank
isbn10 | asin:0821347322
print isbn13:9780821347324
ebook isbn13:9780585288925
language:English
subjectIntergovernmental fiscal relations--Mexico, Fiscal policy--Mexico, Decentralization in government--Mexico.
publication date:2000
lcc:HJ803.A28 2000eb
ddc:336.3/0972
subject:Intergovernmental fiscal relations--Mexico, Fiscal policy--Mexico, Decentralization in government--Mexico.
Page i
Achievements and Challenges of Fiscal Decentralization
Lessons from Mexico
Edited by
Marcelo M. Giugale and
Steven B. Webb
Page ii 2000 The International Bank for Reconstuction and DevelopmentTHE - photo 2
Page ii
2000 The International Bank for Reconstuction
and Development/THE WORLD BANK
1818 H Street N.W.
Washington, D.C. 20433
All rights reserved
Manufactured in the United States of America
First printing May 2000
The cover illustration is Pareja (1990) by Rodrigo Pimentel, reproduced courtesy of the artist and Chac-Mool Gallery, Los Angeles. Photograph by Javier Hinojosa.
The findings, interpretations, and conclusions expressed in this paper are entirely those of the author(s) and should not be attributed in any manner to the World Bank, to its affiliated organizations, or to members of its Board of Executive Directors or the countries they represent. The World Bank does not guarantee the acccuracy of the data included in this publication and accepts no responsibility for any consequence of their use.
The material in this publication is copyrighted. The World Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly.
Permission to photocopy items for internal or personal use, for the internal or personal use of specific clients, or for educational classroom use is granted by the World Bank, provided that the appropriate fee is paid directly to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA; telephone 978-750-8400, fax 978-750-4470. Please contact the Copyright Clearance Center before photocopying items.
For permission to reprint individual articles or chapters, please fax a request with complete information to the Republication Department, Copyright Clearance Center, fax 978-750-4470.
All other queries on rights and licenses should be addressed to the Office of the Publisher, World Bank, at the address above or faxed to 202-522-2422.
Library of Congress Cataloging-in-Publication data has been applied for.
Page iii
Contents
Acknowledgements
ix
List of Acronyms
xi
Preface
Olivier Lafourcade
xv
Overview
Marcelo Giugale, Vinh Nguyen, Fernando Rojas, and Steven B. Webb
1
Picture 3
Institutions for Decentralization
4
Picture 4
Spending and Service Delivery
11
Picture 5
Subnational Taxes and Revenue
15
Picture 6
Intergovernmental Transfers
19
Picture 7
Subnational Borrowing and Debt Management
23
Picture 8
Options and Agenda for Action
29
Picture 9
Medium- to Long-Term Agenda: 2001-2006
33
Perspectiva General
Marcelo Giugale, Vinh Nguyen, Fernando Rojas, y Steven B. Webb
39
Picture 10
Las Instituciones de la Descentralizacin
42
Picture 11
Gasto y Prestacin de Servicios
51
Picture 12
Impuestos e Ingresos Subnacionales
56
Picture 13
Transferencias Intergubernamentales
60
Picture 14
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