GOLD Report I - UCLG

LATIN AMERICA198United Cities and Local GovernmentsThe decentralizing process in Latin Americahas shown diverse and contradictory signs,and is passing through a moment of uncertainty.In big countries like Brazil, there is aneed to review the federal pact and transferpolicies in order to deal with the growingcost of the new responsibilities ofeducation and health.In Argentina, party political centralism continuesto be a limiting factor for local autonomy,particularly at the provincial level. InRepública Bolivariana de Venezuela, it is fearedthat the government will intervene increasinglyin the provincial states andmunicipalities, cutting down their autonomy.In Mexico, where democratization of nationaland local political life has made significantadvances, strong pressure persists onthe federal government to move forwardwith questions of federalism and decentralization.local, regional and state levels, generatetensions between the municipal and departmentallevels. In the framework ofthe current Constituent Assembly, the topicof decentralization and regionalizationis at the heart of the national politicaldebate.However, in Peru, Ecuador and the DominicanRepublic, intended constitutionalreforms have positive implications for localgovernments. In the Dominican Republic, anew Law of Presupuesto Participativo orParticipatory Budget has been passed, anda new Municipal Law is expected.Meanwhile, in Chile the national governmentand the Chilean Association of Municipalitiesare negotiating a new MunicipalReform to increase the responsibilities andresources of the municipalities with thehope of stimulating local development andreducing social and territorial inequalities.57. Centralizedestablishment ofremunerations bylocal authorities,cutting of transfersand centralizationof decisions tofinance projects.In some unitary states, this process hasbeen slowing down. In Colombia, local governmentspending is controlled in orderto reduce the fiscal deficit of the centralgovernment. During the last years, decentralizationhas not been intensifying.In Colombia, sub-national expenditure iscontrolled to alleviate the deficit of centralgovernment, and the decentralizationprocess has not deepened over the lastyears. In Ecuador, the transfer of competenciesis at a standstill; local authoritiesare asking the government to undertakeconcrete measures to re-launch the process.In Peru, local authorities haveshown concern about recent unwelcomemeasures taken by the national government57 .In Bolivia, where local governments nowadminister half of the national public investment,the rigidity of the transfer systemand the overlap of responsibilities at theIn those countries with more incipientprocesses, the situation seems stable. InParaguay, control from central governmentcontinues to be decisive in theaction of the sub-national governments,although the Paraguayan Organization ofInter-municipal Cooperation, OPACI, haspresented a project to the national governmentto pass a law reforming municipallegislation.In Uruguay, various “Intendencias Departamentales”(department executives) insistthat the Local Commissions or Juntas befurther strengthened, and propose newmechanisms of citizen participation. Thereis a new bill in parliament for Local Decentralization,which intends by 2010 to bringthe public administration closer to the peoplethrough the municipal authorities intowns or villages with more than 2,500 inhabitants.