Decentralization and environmentally sound decision making: Policy implications

Among the major political and economic trends that have been evolving in Latin America in recent years, the emergence of municipal governments as frontline actors stands out. Central American countries have begun to grant local governments greater rights and responsibilities regarding natural resource management. In Guatemala, one of the major pieces of legislation to achieve important rural development goals, as claimed by the government, is the Law of Decentralization. As more decision making is transferred to local governments, one wonders: what are the attitudes of potential local decision makers towards the environment, and which factors may explain such attitudes; what would be the dominant criteria for local decision making in selecting development projects; and, what will be the level of priority assigned to environmental concerns. This paper aims to answer these questions. A two phase analytical process was conducted: first, aiming at determining individual local decision makers´ attitudes towards the environment and identifying the factors that determine such attitudes; secondly, determining whether, in fact, individual attitude could explain actual decision making. Age, gender, education and non-formal environmental training are significant variables in shaping environmental attitudes. Environmental attitude, as measured by the NEPS, is significant in determining pro-environmental investment decisions.