By Steven B. Webb, Marcelo M. Giugale
The 3 forces of democratization, decentralization, and improvement have swept internationally the decade and redrawn the maps of politics, strength, and prosperity. smooth Mexico has been absolutely engaged within the trio, making it a wealthy case learn. in recent times, more desirable political festival has redistributed decisionmaking throughout all degrees of presidency, making the govt. extra in charge to the common citizen. It has additionally given subnational governments a renewed function as fiscal brokers. The taxation, spending, borrowing, and associations of Mexican states and municipalities at the moment are more and more lower than the rigor of industry self-discipline. The mixed, nearer scrutiny of citizens and financiers is making a new incentive framework for policymakers-a framework the place important reforms turn into either inescapable and, extra importantly, a perceived resource of strength gift. This booklet is the made of the analytical paintings of a giant variety of specialists, Mexican and overseas. within the publication, the specialists rfile Mexico's decentralization adventure; conceptualize its major developments, regulations, and concepts; and convey it into the sunshine of overseas comparability. They distill severe classes and demanding situations which are of relevance for Mexico, for Latin the US and, more often than not, for international locations which are embarking on a ways attaining decentralization efforts. This renders the quantity a massive contribution to our wisdom and considering during this sector; and a well timed one, for the reason that decentralization is an irreversible procedure that's more likely to proceed occupying policymakers for future years.
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For small municipalities, however, which need capacity building the most, the amount comes to only a few hundred pesostoo little and too scattered for Mexico's 2,400 municipalities. The state of Puebla has developed a series of agreements with its municipalities to concentrate and augment these resources at the state level and to provide a program of capacity building, based on a survey of local needs. The federal government is also planning new programs for supporting capacity building at state and local levels.
At the other end of the spectrum, isolated areas are already having trouble attracting enough teachers that meet the usual national standard, even though the national salary is high compared to local wages. The federal transfer system may need to provide extra support there. Faced with these economic realities, the teachers may see the necessity and benefit of having their union focus less on negotiating national raises and more on setting standard negotiating frameworks for local branches. Separating the assignment of responsibilities for maintenance and operation of infrastructure facilities from responsibility for capital investment has been a persistent problem in Mexico.
Achievements and challenges of fiscal decentralization: lessons from Mexico by Steven B. Webb, Marcelo M. Giugale