Fiscal Decentralization and Municipal Governance in Mexico The Case of Chihuahua Prepared for delivery at the 1997 meeting of the Latin American Studies Association, Continental Plaza Hotel, Guadalajara, Mexico, 17-19 April, 1997 DRAFT Emily Edmonds Elías University of California, San Diego Department of Political Science, 0521 9500 Gilman Dr. La Jolla, California, 92093-0521 (619) 534-3548
[email protected] I gratefully acknowledge the support of a field research grant from the Tinker Foundation and the Center for Iberian and Latin American Studies (CILAS) at the University of California, San Diego. The 1980s was a decade of change in Latin America. Economically the region experienced the most serious crisis since the period of the Great Depression. Politically there was a general move away from the authoritarianism that characterized the preceding decade toward more open, pluralistic forms of government. One of the aspects that accompanied this change in style of governance was the devolution of political power to the state and municipal level. Faced with fiscal crisis and increased political demands for urban public services, many Latin American states began to adopt administrative decentralization policies in an attempt to both reduce financial pressures on the federal government and to increase the efficiency of public service provision. The logic behind this type of reform was straightforward: devolving administrative responsibilities to states and municipalities would not only result in greater allocative efficiency, given that local governments were better situated to assess their priorities and design cost-effective solutions, it would also improve the overall quality of governance because local constituents were thought to be in a better position to monitor public expenditure and policy outcomes in their communities.