1. Dynamics in
Governance:
decentralization and
local governance
D EC EMBER 11 / 2 0 1 3
C R IST IN A M ED IN A
J U AN C AR L O S AR C IN IEG AS

2. What is descentralization?
According to Falleti (2005: 328)
decentralization is:
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

3. Does decentralization always increase the power of governors
and mayors?
Has decentralization shift in the balance of power among,
president, governors and mayors?

4. Why different counties have evolved
in different ways?
National
path
Depends upon the bargaining power
between national and subnational governments.
If the process is lead by National
government it starts with
administrative decentralization,
followed by fiscal decentralization
and finally political decentralization.
Subregional
path
If the Subnational interests prevail
political decentralization take place
at the beginning, followed by fiscal
decentralization and finally
administrative decentralization
Between these extreme cases we can found different arrangements that
depend of the power of the actors.

5. Why Argentina and Colombia had such a radically different
outcomes if they implemented decentralization policies
during the same period

6. 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

7. 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

8. 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.