EDR: Nearby solutions: The role of regional and local governments in Latin America and the Caribbean

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About the report...

Learn about and download the CAF RED: Nearby solutions: the role of local and regional governments in Latin America and the CaribbeanThe decentralization process that has taken place over the last four decades in Latin America and the Caribbean (LAC) has enhanced the relevance of local and regional governments. As a result of their expanded powers, these governments now address a variety of key issues for the achievement of the Sustainable Development Goals (SDGs). Their work is crucial in urban infrastructure, education, health and citizen security, and encompasses cross-cutting aspects of the development agenda, such as gender equity and environmental sustainability.

Bringing decision-making closer to citizens through decentralization holds the promise of improving the quality of government and public services. Such proximity can facilitate the identification of local needs and more direct social control. In addition, the proliferation of autonomous subnational governments enables a greater diversity of practices from which to learn and select the best. But decentralization also implies important challenges related to the definition of attributions, interjurisdictional coordination and, especially, the development of government capacities in the territories.

Evidence in the region shows that some of the benefits of decentralization have been realized. Regional and local governments are well established as a result of decentralization.

This edition of the Economy and Development Report (RED) has two main objectives. First, to document the landscape of local and regional governments in terms of their powers, resources and practices, on which systematized information is surprisingly scarce. And second, to identify areas and opportunities for capacity building that are important for improving service delivery by these governments.

Chapter 1

The territorial organization of countries and the challenges faced by local and regional governments

Roadmap for this chapter:

The territorial organization of governments in LAC
Territorial challenges: Urbanization and development gaps
Challenges of global trends: Climate change and digitalization
Origins and recent evolution of territorial organization

Read the complete chapter 1 See the auxiliary material in chapter 1

Authors: Guillermo Alves; Gustavo Fajardo

Chapter 2

Roles of local and regional governments

Roadmap for this chapter:

Degree and evolution of local and regional governments’ autonomy
Patterns in the allocation of functions across government levels
Urban planning and local government functions
Responsibilities in education, health, and security
The roles of subnational governments and Sustainable Development Goals

Read the complete chapter 2 See the auxiliary material in chapter 2

Authors: Guillermo Alves; Gustavo Fajardo

Chapter 3

What subnational governments spend on and how they spend it

Roadmap for this chapter:

The level and composition of subnational government spending in Latin America and the Caribbean.
Budgetary rigidities faced by subnational governments.
Mechanisms to improve the quality of subnational government spending.

Read the complete chapter 3 See the auxiliary material in chapter 3

Authors: Pablo Brassiolo; Rodrigo Cifuentes

Chapter 4

How subnational governments invest and finance their investments

Roadmap for this chapter:

Level and composition of subnational public investment in Latin America and the Caribbean.
Challenges in the efficiency of planning and executing subnational projects.
Financing mechanisms and regulation of subnational government borrowing.
Strategies to improve intergovernmental coordination and strengthen institutional capacities.

Read the complete chapter 4 See the auxiliary material in chapter 4

Authors: Pablo Brassiolo

Chapter 5

Subnational government revenues: The role of taxes and transfers

Roadmap for this chapter:

Structure of subnational government revenues in Latin America and the Caribbean.
Characteristics of subnational tax revenues and action areas.
Status of transfer systems and action areas.

Read the complete chapter 5 See the auxiliary material in chapter 5

Authors: Carolina Camacho; Ricardo Estrada

Chapter 6

Management of fee-based services and interjurisdictional cooperation

Roadmap for this chapter:

Distribution of responsibilities in fee-based service provision across government levels
Local capacities for regulating and modernizing bus systems
Challenges faced by subnational governments in providing water and sanitation services
Mechanisms for interjurisdictional coordination and metropolitan governance in the region

Read the complete chapter 6 See the auxiliary material in chapter 6

Authors: Guillermo Alves; Gustavo Fajardo

Chapter 7

Who are the public officials of subnational governments?

Roadmap for this chapter:

An overview of subnational bureaucracies
Gender and ethnic gaps in public employment and elected positions
Challenges in building highquality subnational bureaucracies
Regulatory framework
Entry mechanisms for public service, wage premiums, and training
Local electoral systems

Read the complete chapter 7 See the auxiliary material in chapter 7

Authors: Ricardo Estrada

Chapter 8

Digitalization and management capacities

Roadmap for this chapter:

Adoption of technologies for internal process management
Digitalization of procedures and services for citizens and businesses
Use of technologies to manage city and urban services
Structural factors enabling the adoption of digitalization strategies

Read the complete chapter 8 See the auxiliary material in chapter 8

Authors: Florencia Buccari; Gustavo Fajardo

Atlas of local and regional governments in Latin America and the Caribbean

Discover the reality of more than 18,000 local and regional governments in 33 countries across Latin America and the Caribbean. Explore key indicators on demographics, development, education, and the labor market.

This platform is an initiative of the Socioeconomic Research Directorate with the support of the Urban Development, Water, and Creative Economies Management of CAF — Development Bank of Latin America and the Caribbean.

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