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Can Subnational Autonomy Strengthen Democracy in Bolivia?

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  • Jean-Paul Faguet

Abstract

Bolivia is one of the most radical and sincere of decentralization reformers. It recently implemented new reforms granting autonomy to departmental, regional, municipal, and indigenous and rural governments. What effects might these have on public investment patterns, government responsiveness, intergovernmental fiscal relations, the sustainability of public finances, and political accountability? I examine autonomies in light of both fiscal federalism theory and evidence on the effects of Bolivia's 1994 decentralization. By submitting new reforms to the dual rigors of theory and evidence, we can arrive at contingent projections of their likely effects. I identify adjustments to improve efficiency and sustainability in intergovernmental relations, and reduce horizontal imbalances. In sum, the reform has the potential to improve citizen participation, make government more accountable, and deepen Bolivian democracy. Copyright 2014, Oxford University Press.

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  • Jean-Paul Faguet, 2014. "Can Subnational Autonomy Strengthen Democracy in Bolivia?," Publius: The Journal of Federalism, CSF Associates Inc., vol. 44(1), pages 51-81, January.
    • Handle: RePEc:oup:publus:v:44:y:2014:i:1:p:51-81
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    File URL: http://hdl.handle.net/10.1093/publius/pjt020
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    Cited by:

    1. Khan, Qaiser & Faguet, Jean-Paul & Ambel, Alemayehu, 2017. "Blending Top-Down Federalism with Bottom-Up Engagement to Reduce Inequality in Ethiopia," World Development, Elsevier, vol. 96(C), pages 326-342.
    2. Faguet, Jean-Paul & Sanches, Fábio & Villaveces, Marta-Juanita, 2016. "The paradox of land reform, inequality and local development in Colombia," LSE Research Online Documents on Economics 67193, London School of Economics and Political Science, LSE Library.
    3. Anila Channa & Jean-Paul Faguet, 2016. "Decentralization of Health and Education in Developing Countries: A Quality-Adjusted Review of the Empirical Literature," The World Bank Research Observer, World Bank, vol. 31(2), pages 199-241.

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