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Fiscal Decentralization in Colombia: A Work (Still) in Progress

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  • Richard M. Bird

    (University of Toronto)

Abstract

The degree of fiscal decentralization in Colombia is impressive. In some respects, however, Colombian decentralization has hardly changed since the process first began over 40 years ago. This review of the experience of the last few decades and the challenges now facing the country shows that there have been some clear successes as a result of decentralization. However, many problems have also arisen as a result of both perverse incentives built into the system and the failure to build up central and especially local capacity to manage a more decentralized system. Unless these critical problems are resolved, fiscal decentralization in Colombia will remain a work in progress with, at best, only partially successful outcomes whether in terms of providing public services to the country’s growing population more effectively, efficiently, and equitably or in terms of improving subnational governance in general.

Suggested Citation

  • Richard M. Bird, 2012. "Fiscal Decentralization in Colombia: A Work (Still) in Progress," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1223, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    • Handle: RePEc:ays:ispwps:paper1223
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    Cited by:

    1. Richard M. Bird, 2014. "Foreign advice and tax policy in developing countries," Chapters, in: Richard M. Bird & Jorge Martinez-Vazquez (ed.), Taxation and Development: The Weakest Link?, chapter 4, pages 103-144, Edward Elgar Publishing.
    2. Jaimes, Richard, 2016. "Estimating Fiscal Adjustments at the Local Level in Colombia," MPRA Paper 75507, University Library of Munich, Germany.
    3. Richard Jaimes, 2020. "Fiscal adjustments at the local level: evidence from Colombia," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 27(5), pages 1148-1173, October.
    4. Juan Mauricio Ramirez & Yadira Diaz & Juan Guillermo Bedoya, 2014. "Decentralization in Colombia: Searching for social equity in a bumpy economic geography," Working Papers 337, ECINEQ, Society for the Study of Economic Inequality.
    5. Mainali, Raju & Tosun, Mehmet Serkan & Yang, Jingjing, 2022. "Fiscal decentralization, intergovernmental transfer reform and conflict in Colombian municipalities," Socio-Economic Planning Sciences, Elsevier, vol. 83(C).
    6. Raju Mainali, 2021. "Spatial Fiscal Interactions in Colombian Municipalities: Evidence from Oil Price Shocks," JRFM, MDPI, vol. 14(6), pages 1-15, June.
    7. Juan Mauricio Ramírez & Juan Guillermo Bedoya & Yadira Díaz, 2014. "Convergencia social en Colombia: el rol de la geografía económica y de la descentralización," Informes de Investigación 12499, Fedesarrollo.
    8. Eduardo A. Haddad & Luis A. Galvis & Inácio F. Araújo-Junior & Vinicius A.Vale, 2018. "Impact Assessment of Scenarios of Interregional Transfers in Colombia," Documentos de trabajo sobre Economía Regional y Urbana 272, Banco de la Republica de Colombia.
    9. Ramírez, Juan Mauricio & Díaz, Yadira & Bedoya, Juan Guillermo, 2017. "Property Tax Revenues and Multidimensional Poverty Reduction in Colombia: A Spatial Approach," World Development, Elsevier, vol. 94(C), pages 406-421.
    10. Andrea Franco & Arlen Guarín & Carlos Medina & Christian M. Posso, 2017. "Políticas de País y Logros de Regiones: el Caso de la Calidad de la Educación Secundaria en Colombia," Borradores de Economia 981, Banco de la Republica de Colombia.
    11. Frank M. Fossen & Lukas Mergele & Nicolas Pardo, 2017. "Fueling fiscal interactions: commodity price shocks and local government spending in Colombia," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 24(4), pages 616-651, August.
    12. World Bank, 2014. "Towards Sustainable Peace, Poverty Eradication, and Shared Prosperity [Hacia la paz sostenible, la erradicación de la pobreza y la prosperidad compartida : notas de política: Colombia]," World Bank Publications - Reports 21037, The World Bank Group.

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