Colombia - Decentralizing revenues and the provision of services : a review of recent experience
Tyron, Darryl
The decentralization process now underway in Colombia represents a major departure from the centralist tradition that has shaped the country's political, social and economic development for more than a century. The reforms and their attendant changes present a number of issues for the Bank. For example, there is the question of the impact of the reforms on the national budget. A critical element in achieving greater public sector efficiency through decentralization is improved fiscal performance. There is also the issue of the impact on the quality of services provided at the local level. The transfer of service provisions to inexperienced local entities could have negative implications for the quality and coverage of basic services and the access to these services by the poor. In this context, institution building is crucial. The aim of this report is to review these issues and to make suggestions on new approaches for providing local services as well as the policies and mechanisms for financing these services. Finally, the report notes that decentralization is a continuously evolving process, and it is likely to take years before its full impact can be evaluated.
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