Decentralization, Fiscal Effort and Social Progress in Colombia at the Municipal Level, 1994-2009: Why Does National Politics Matter?
The present paper explores the relationship between political competition and effective public goods delivery systems in a decentralized context to study whether the awareness generated through such a competitive environment and the existence of more political options are a part of the causal mechanisms for effective governance. In particular, we want to observe the effect of electoral competition on the incentives to build fiscal capacity and provide public goods such as education and water, that are to a large extent the responsibility of the local municipalities. The research hypothesis is that political competition strengthens the decentralized municipalities through building their local fiscal capacity. In turn, the fiscal capacity is the fundamental variable that explains the differences in sector performance across local governments. Local fiscal capacity brings about better policy outcomes, as well as a better match between resources and the needs - what we call responsiveness - which simultaneously ensures greater efficiency in local spending. Using a rich panel municipal dataset from 1994 till 2009, we have shown that on comparing the differences across education and the water and sewerage sectors, the power of fiscal effort appears to be the driving force behind better policy outcomes than any other resource commonly made available to the municipalities, such as national transfers or royalties.
|Date of creation:||Jul 2013|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.iadb.org/publications/Email:
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ligia Melo Becerra, 2005.
"Impacto De La Descentralización Fiscal Sobre La Educación Pública Colombiana,"
BORRADORES DE ECONOMIA
002802, BANCO DE LA REPÚBLICA.
- Ligia Melo B., . "Impacto de la Descentralización Fiscal sobre la Educación Pública Colombiana," Borradores de Economia 350, Banco de la Republica de Colombia.
- Faguet, Jean-Paul, 2004. "Does decentralization increase government responsiveness to local needs?: Evidence from Bolivia," Journal of Public Economics, Elsevier, vol. 88(3-4), pages 867-893, March.
- Jean-Paul Faguet & Fabio Sánchez, 2014.
"Decentralization and access to social services in Colombia,"
Springer, vol. 160(1), pages 227-249, July.
- Jean-Paul Faguet & Fabio Sánchez, 2009. "Decentralization and Access to Social Services in Colombia," DOCUMENTOS CEDE 005401, UNIVERSIDAD DE LOS ANDES-CEDE.
- Faguet, Jean-Paul & Sánchez, Fabio, 2008.
"Decentralization's Effects on Educational Outcomes in Bolivia and Colombia,"
Elsevier, vol. 36(7), pages 1294-1316, July.
- Jean-Paul Faguet & Fabio Sanchez, 2006. "Decentralization´S Effects On Educational Outcomes In Bolivia And Colombia," DOCUMENTOS CEDE 002255, UNIVERSIDAD DE LOS ANDES-CEDE.
- Jean-Paul Faguet & Fabio Sanchez, 2006. "Decentralization’S Effects On Educational Outcomes In Bolivia And Colombia," STICERD - Development Economics Papers - From 2008 this series has been superseded by Economic Organisation and Public Policy Discussion Papers 47, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
- Jean-Paul Faguet & Fabio Sanchez, 2006. "Decentralization’s effects on educational outcomes in Bolivia and Colombia," LSE Research Online Documents on Economics 2397, London School of Economics and Political Science, LSE Library.
- M. S. Ridout, 2003. "Book Reviews," Biometrics, The International Biometric Society, vol. 59(2), pages 455-465, 06.
- Rodríguez, Catherine, 2010. "Correspondencia de economía política y decisiones de educación en las familias después de la descentralización," El Trimestre Económico, Fondo de Cultura Económica, vol. 0(308), pages 977-1006, octubre-d.
- Weingast, Barry R., 2009. "Second generation fiscal federalism: The implications of fiscal incentives," Journal of Urban Economics, Elsevier, vol. 65(3), pages 279-293, May.
- Fisman, Raymond & Gatti, Roberta, 2000.
"Decentralization and corruption - evidence across countries,"
Policy Research Working Paper Series
2290, The World Bank.
- Fisman, Raymond & Gatti, Roberta, 2002. "Decentralization and corruption: evidence across countries," Journal of Public Economics, Elsevier, vol. 83(3), pages 325-345, March.
- Guillermo Perry & Mauricio Olivera, 2010. "El impacto del petróleo y la minería en el desarrollo regional y local en Colombia," WORKING PAPERS SERIES. DOCUMENTOS DE TRABAJO 009070, FEDESARROLLO.
- Marcela Meléndez & Andrés Gómez-Lobo Echeñique, 2007. "Social Policy, Regulation and Private Sector water supply: the case of Colombia," Working Papers wp252, University of Chile, Department of Economics.
- M. Teresa Melo, 2003. "Book Reviews," Mathematical Methods of Operations Research, Springer, vol. 56(3), pages 535-536, 01.
- A. Michaelowa, 2003. "Book Reviews," Climate Policy, Taylor & Francis Journals, vol. 3(1), pages 97-99, March.
When requesting a correction, please mention this item's handle: RePEc:idb:brikps:81418. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Monica Bazan)
If references are entirely missing, you can add them using this form.