Main report

The World Bank

Bolivia - Institutional governance review : towards an inclusive decentralization : Main report (English)

Abstract

Bolivia is among the most unequal countries in Latin America. And the central government's fiscal transfers to departments from hydrocarbon revenues are themselves highly inequitable. As a consequence of the Hydrocarbons Law, the new spending of departmental... See More + Bolivia is among the most unequal countries in Latin America. And the central government's fiscal transfers to departments from hydrocarbon revenues are themselves highly inequitable. As a consequence of the Hydrocarbons Law, the new spending of departmental governments will also be highly unequal in per capita terms. In addition, the quality of services in all sectors is uneven -regions. The quality of services in health, education, among others is also unequal within each department, showing significant disparities between urban and rural areas. However, improving public services is not at the center of the current debate. A more inclusive decentralization needs to be based on more equitable resource distribution as a means to achieve better and more uniform service provision. These two elements are key and can contribute to reducing inequality and achieving greater inclusion as part of a new social contract. The second phase of decentralization faces three sets of problems which are addressed in this report: 1) Inappropriate Decentralization Strategy: Decentralization reforms are debated, enacted, and implemented in a disjointed manner among regional and municipal levels. 2) Weak institutional arrangements: Departmental governments do not have sufficient autonomy to manage resources adequately; and responsibilities among levels of government are disjointed and fragmented. This leads to weak accountability and inefficiency. 3) Inadequate fiscal decentralization framework: The intergovernmental fiscal framework leads to inequity in resource distribution and weak fiscal responsibility. Underlying this are the ear-marking of revenues to certain regions; fiscal pressures generated by current royalty distributions; resources transferred without expenditure responsibilities; the lack of own revenue on departmental level and high transfer dependence on the Central Government; inequalities in transfers among regions; as well as non-transparent management of sub-national debt. See Less -

Document also available in : Spanish

Document Date 2006/05/30
Document Type Institutional and Governance Review (IGR);
Report Number 36285
Volume No 1
Total Volume(s) 2 (See all volumes)
Country Bolivia;
Region Latin America & Caribbean;
Disclosure Date 2006/09/11
Disclosure Status Disclosed
Doc Name Main report
Keywords
decentralization strategy;quality of public service;social and economic development;fiscal responsibility;policy option;public service delivery;intergovernmental fiscal ... See More +
Language English
Major Sector Public Administration;
Rel. Proj ID BO-Towards And Inclusive Decentralization -- P090076;
Sector Other Public Administration ; Sub-National Government;
Topics Social Inclusion; Education; Fiscal Decentralization; Public Administration; Health;
Historic Topics Macroeconomics and Economic Growth; Public Sector Development; Urban Development;
Historic SubTopics Macro-Fiscal Policy; Economic Adjustment and Lending; Health Care Services Industry; Public Sector Economics; Public Sector Administrative & Civil Service Reform; Educational Sciences; Social Development & Poverty; Public Finance Decentralization and Poverty Reduction; Democratic Government; Public Sector Administrative and Civil Service Reform; De Facto Governments;
Unit Owning Public Sector (LCSPS)
Version Type Gray cover
Product Line Economic and Sector Work

Documents & Reports

Bolivia - Institutional governance review : towards an inclusive decentralization : Main report (English)

Details

Downloads

Complete Report in English

Citation

Documents & Reports

Bolivia - Institutional governance review : towards an inclusive decentralization : Main report (English)

Details

Downloads

Complete Report in English

Citation

Related Links

SUBSCRIBE TO EMAIL ALERTS