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Decentralization and Rural Development in Mexico: Community Participation in Oaxaca's Municipal Funds Program

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Decentralization and Rural Development in Mexico: Community Participation in Oaxaca's Municipal Funds Program UC Santa Cruz Reprint Series Title Decentralization and Rural Development in Mexico: Community Participation in Oaxaca's Municipal Funds Program Permalink https://escholarship.org/uc/item/5jk3b9gt Authors Fox, Jonathan A Aranda, Josefina Publication Date 1996 Peer reviewed eScholarship.org Powered by the California Digital Library University of California MoNocrdAPH SERrEs, 42 Decentralization and Rural CENTER FoR U.S--MEXICAN STUDIES UM\TRSITY oF CALIFoRMA/ SAN DIEGO Development in Mexico Community Participøtion in Oøxøcø's Municipal Funds Progrøm by IONATHAN FoX AND IOSEFINAARANDA CEMER FOR U.S,.MEXICAN STUDIES UM\,TRSITY oF CALIFoRNIA, SAN DIEGo Contents O 1996 by the Regents of the University of Califomia- PubÌished by List of Tøbles and Figures vl '.he Cente¡ for U.S.-Mexican Studies at the University of California, San Díego. All dghis ¡ese¡ved u¡rder Intemational and Pan-Amedcan Acknowledgm.ents Convenlions. No pa of this publication may be reproduced or vlr t¡ansmitted in any form or by any rneans, electronic or mechanical, hcluding photocopy, recording, or any information storage or Map of Mexico ¡etrieval svstem, without pío¡ permission in writing f¡om the publisher- Preface: The World Bank and Poverty Lending in Rural Mexico Fox -lonathan 1 . Introduction 2 o Research Design 3 . Municipal Solidarity Funds: Process 2I 4 o Municipal Funds Project Impact 31 5 o Conclusions 45 Appendix 1: Sample of Oaxaca Municipalities 51 Appendix 2: Selected CO\GR ENGRAVING by Rini Templeton; courtesy of Municipal Case Summaries 54 Amelia Rir.aud and Mauricio Sánchez. Appendix 3: Submunicipal Governance Structures in Mexíco 64 Referenees 69 ISBN 1-878-367-33-1 (paper) Pri¡ted in the United States of Ame¡íca About the Authors 75 ffi ffi ffi @ Tables and Figures w ffi ffi Tables ffi w ffi 1 Worid Bank Loans to Mexico, 1986-1996 xI11 K. Acknowledgments # 2 Changing Share of World Bank Poverty and ffi Environmental Lending to Mexico ,1986-7995 xvl ffi The authors are very grateful to P¡ofesso¡ Fausto Díaz Montes of the Universidad Autónoma "Benito luárez" de Oaxaca a¡d ,Jre membe¡s ffi Municipal Fund Allocation by Proiect Category, 1991 1.7 3 of the field ¡esea¡ch team: Alejandro Arrellano, Luis Miguei Bascones, ¡* Ma¡uel Fern¡índez, Fáti:îa Ga¡cía, SaÌomón Gonzâ\e2, Femandt¡ w 4 Correlation of Project Impact and Location Guardarrama, and Luis Adolfo Méndez Lugo. Local, state, a¡d fed- w within Municipality e¡aÌ officials in Oaxaca were very generous with thei¡ time and in- w formation. !ã* åffi 5 Co¡relation of Project Selection Process and Special thanks to Marti¡ Disicin fo¡ early input and inspiration. Pablo Policzer provided H Social Impact essential support with the statistical analysis, tr and Matthew Wexler generously assisted with the figures. Jonaihan w Schlefe¡, Ronald Dore, artd Aubrey Williams offered very useful tw Figures comments on earlier d¡afts. And¡ea Silve¡man, Task Manager for the Wo¡ld Bank's ffi Decentralization and Regional Development project, ê# 1 Rates of Municipal Solidarity Council Formation provided c¡ucial insights a¡d const¡uctive criticism throughout the lF by Region in Oaxaca 23 process. Thanks also to Fra¡k Lysy, Lead Economist fo¡ Mexico at the ¡R World Bank, for ki¡dly permitti¡g use of the map. This study was funded by the World participation ffi 2 Categories of Operating Projects 33 Bank's i¡ternal Learning Group, with support fÌom the Swedish Intemational Devei- ffi opment Agency. The Fo¡d Foundation's Mexico City office provided {s 3 Dist¡ibution of Projects According to Social Impact additional research support via the Unive¡sidad Autónoma ,,Benito lufuez" de Oaxaca, permitting the first pubJication of ¡esearch find- ffi 4 Projects in Operation in Municipal Centers ings (Díaz Montes and Aranda 1995). ffi and Agencùts .1) This monograph is based on the final study p¡esented to the World Bank and the Mexican Social Development Mi¡istry i¡ Sep- ä tembe¡ iä 5 Project Impact According to Location in Municipality 36 1994. The empirical findirrgs have not been updated or changed significantly. The data # a]ld analysis presented he¡e are the ÈI exclusive responsibility of the autho¡s, who håd complete autonomy lþ 6 Observ'ed Project Impact According to Size of f¡om both the World Ba¡k and the govemment to carry out their re- 38 i{t Municipality search. A related Spanish-language version of this study will appear *? in a fortlrcoming issue of the Re:aísta Merícqnr de Sociología (Fox arÅ lÌi; 7 Project Impact and Ethnic ldentity 39 Aranda n.d.). ffi tÊt 8 Key Project-Selection Decìsion Makers 40 ffi ffi ffi Tables and Figures Tables 1 World Bank Loans to Mexico, 198Ç1996 x1t1 Acknowledgments 2 Changing Share of World Bank Poverty and Environmental Lending to Mexico ,7986-1995 The authors are very grateful to Professor Fausto Díaz Montes of the Universidad Autónoma "Benilo Juátez" de Oaxaca and the membe¡s Fund by Project Category, 1991 17 3 Municipal Allocation of the field research team: Alejandro Arrellano, Luis Miguel Bascones, Manuel Femández, Fâlilina García, Salomón Gonzâlez, Femando 4 Co¡relation of Project Impact and Location Guardarrama, and Luis AdolJo Méndez Lugo. Local, state, a¡d fed- within Municipality 3/ eral officials in Oaxaca were very generous with, their time and t¡- formation. 5 Correlation of Project Selection Process and Special thanks to Marti¡ Diskin for early input and i¡spiration., Pablo Policzer provided essential support with the statistical Social Impact 42 a¡alysis, and Matthew Wexler generousìy assisted with the figures. lonathan Schlefer, Ronald Dore, and Aubrey Williams offered very useful Figures corrtrnents on earlie¡ drafts. Andrea Silverman, Task Malager for the World Bank's Decentralization and Regional Development project, Rates of \4unicipal Solidariry Council Formation provided crucial insights and constructive criticism throughout the by Region in Oaxaca process. Tharks also to Fraak Lysy, Lead Econornist fo¡ Mexico at the World Ba¡k, fo¡ kindÌy perrnittiag use of the map. This study was funded by the Wo¡ld Bank's Categories of Operating Projects 33 inter¡al Participation Leaming Group, with support f¡om the Swedish Intemational Devel- opment Agency. The Fo¡d For.Erdation's Mexico City office provided Distribution of Projects According to Social Impact additional research support via the Universidad Autónoma "Benito Juátez" de Oaxaca, permitting the first publication of ¡esea¡ch fi¡d- Prolects in Operation in Municipal Centers ings (Díaz Montes arrd Aranda 1995). and Agencias 35 This monograph is based on the final study presented to the Wo¡ld Ba¡k and the Mexica¡r Social Development Ministry in Sep- tember Project lmpact According to Location in Municipality 36 1994. The ernpirical findings have not been updated or cha¡ged significantly. The data ard alalysis presented here are the exclusive responsibility of the authors, who had cornplete autonomy Project According to Size of Observed Impact f¡om both the World Bank and the govemment to carry out their ¡e- 38 Municipality search. A related Spanish-language version of this study will appear in a forthcoming issue of the Reuista Mexicana. de SocioLogía (Fox and Project Impact and Ethnic Identity 39 Aranda n.d.). Key Project-Selection Decision Makers 40 UNIÍ¡D STATTS OF ÄA¡ERICÁ Preface The World Bank and Poverty Lending in Rural Mexico lonathnn Fox' Mexico has long been one of the World Ba¡k's principal devetoping- colr¡try clients, second only to úrdia as a cumulative bor¡owe¡, Be- cause of the diplomatic sensitivity of the Bark-govemrnerì.t relation- ship, however, nongovemmental policy analysts have generally been Iimited to making inferences about the Ba¡k's role, with little access to irrdependent empirical evidence about how decisions a¡e made or where the funds actually go. Indeed, u¡ti1 the World Bank's 1994 re- fo¡m of its information disclosu¡e policy, even the most basic p¡oject information was confidential (UdaII 1994; World Ba¡k 1994a). Most project evaluation i¡fo¡matìon remai¡s confidential- The followíng study of a community development proiect suggests both possible simila¡ities and diffe¡ences with the rest of the growing "social sector" component of Mexico's World Bank portfolio. The findings, however, are limited to one subcomponent of one loan i¡ one state, among dozens of past, present, a¡d future rural develop- ment ìoars. This preface situates the study i¡ a broader context, pre- senti¡g a brief overview of World Bank lending to Mexico over the past decade. In the 19ó0s and 1970s, the Wo¡ld Bank invested heavily ìn Mex- ico's state-led, import-substituting industrialization project- Af ter ihe 1982 collapse of the oil-debt boom, however, both the Bank and the dominant currents within the govemment concluded that the limits of 'This preface d¡aws from the authot's ongoing research into the Wo¡ld Bank,s Mexico potfolio, \ ¡hich began after the followng study was completed. This resea¡ch was made possìble by an I¡temational Affai¡s lellowship ftom the Council on Foreign Relations. as well as ¡esearch glants fiom the John D. and Cathe¡ine T. MacA¡thu¡ Foundation (Program on Peace and Intemationai Cooperation) and the Social Science Research Coùncil. Fot this strategy had been reached, and both began pushing the state to- TABLE 1 t'a¡d dramatic economic liberalization. a 1994 i¡temal World WORLD BANK LoANS To MEXiCo, 198G1996 Bank evaluaúon of its relationship with Mexico^s found: Bank/Mexico ¡elations. while always generally good, have Loan Commitments become close¡ and mo¡e stable over
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