Democracy Close to Home?Democracy Close to Home? Decentralization and Democratic Decentralization and Democratic Governance in Latin AmericaGovernance in Latin America (Preliminary Findings and Proposed Research)(Preliminary Findings and Proposed Research)

Andrew Selee, Ph.D. StudentAndrew Selee, Ph.D. Student

Maryland School of Public AffairsMaryland School of Public Affairs

DecentralizationDecentralization

Wave of decentralization reforms in almost Wave of decentralization reforms in almost every country in L.A. since 1980 (parallel to every country in L.A. since 1980 (parallel to similar reforms in other parts of the world; but similar reforms in other parts of the world; but L.A. countries share certain commonalities)L.A. countries share certain commonalities)

Legal, constitutional, and political changes that Legal, constitutional, and political changes that allow subnational governments to exercise allow subnational governments to exercise greater authority and act with increased greater authority and act with increased autonomyautonomy

Not the first decentralization wave but the first Not the first decentralization wave but the first one in the context of a broad period of one in the context of a broad period of democratizationdemocratization

Decentralization & Decentralization & DemocracyDemocracy

Has decentralization improved Has decentralization improved democratic governance in democratic governance in

Latin America (Mexico)?Latin America (Mexico)?

How much has decentralization changed the state itself?How much has decentralization changed the state itself?

How much has decentralization changed the relationship How much has decentralization changed the relationship between the state and society?between the state and society?

Structure of the Structure of the PresentationPresentation

I.I. Centralization in Latin AmericaCentralization in Latin America

II.II. Reasons for decentralization todayReasons for decentralization today

III.III. The changing state: preliminary The changing state: preliminary findingsfindings

IV.IV. Changing relations between state and Changing relations between state and society: a proposal for researchsociety: a proposal for research

I. Centralization in L.A.I. Centralization in L.A.

Dual traditions: Centralized authority Dual traditions: Centralized authority (extraction and control) vs. Regional landed (extraction and control) vs. Regional landed elites (+ survival of local self-governance)elites (+ survival of local self-governance)

Increased centralization in the 20th century Increased centralization in the 20th century with the consolidation of the nation-statewith the consolidation of the nation-state Mass politicsMass politics Central resource control (tariffs, oil, etc.)Central resource control (tariffs, oil, etc.) Centrally directed industrial developmentCentrally directed industrial development Urban industrial and labor classesUrban industrial and labor classes

Mexico: PRI as unification of disparate elites; Mexico: PRI as unification of disparate elites; vertical, corporatist, inclusivevertical, corporatist, inclusive

Consequences of Consequences of CentralizationCentralization

National identity (extension of education)National identity (extension of education) Economic growthEconomic growth Disparities in developmentDisparities in development Exclusion of ethnic minority identitiesExclusion of ethnic minority identities Authoritarianism/Clientelism (?)Authoritarianism/Clientelism (?) Mexico: A political system that contained social Mexico: A political system that contained social

protest and ensured growth, but created protest and ensured growth, but created disparities, excluded ethnic identities, and disparities, excluded ethnic identities, and channeled public debate through vertically channeled public debate through vertically structured corporatist channelsstructured corporatist channels

II. DecentralizationII. Decentralization

Economic crisisEconomic crisis Search for efficiency (Mexico, Brazil)Search for efficiency (Mexico, Brazil) Slimming of the state (Argentina)Slimming of the state (Argentina)

DemocratizationDemocratization Desire to limit central power and make government close to Desire to limit central power and make government close to

people (Mexico, Brazil)people (Mexico, Brazil) Crisis of legitimacy of political system (Venezuela, Bolivia)Crisis of legitimacy of political system (Venezuela, Bolivia) Desire of national leaders to distract attention from national Desire of national leaders to distract attention from national

politics (Mexico)politics (Mexico) Reemergence of spaces for influence of local leadersReemergence of spaces for influence of local leaders

III. The Decentralized III. The Decentralized StateState

Considerable variation among countriesConsiderable variation among countries Tied closely to historical patterns of Tied closely to historical patterns of

centralization/decentralizationcentralization/decentralization Usually gradual (except Colombia, Usually gradual (except Colombia,

Bolivia)Bolivia)

Political Changes Political Changes

CountryCountry Regional ElectionsRegional Elections Municipal ElectionsMunicipal Elections

MexicoMexico 1917/1989*1917/1989* 1917/1983*1917/1983*

GuatemalaGuatemala None to dateNone to date 1946/1986*1946/1986*

VenezuelaVenezuela 19891989 19851985

BrazilBrazil 1986**1986** 1988**1988**

ArgentinaArgentina 1983**1983** 1983**1983**

* * Elections existed but were not free Elections existed but were not free ** Elections had existed previously but been suspended under military ** Elections had existed previously but been suspended under military

rulerule

Administrative ChangesAdministrative Changes

SignificantSignificant

DecentralizationDecentralization

ModerateModerate

DecentralizationDecentralization

Minimal Minimal DecentralizationDecentralization

MexicoMexico Health, Educ., Health, Educ., Social Devel.Social Devel.

GuatemalaGuatemala WaterWater Primary Educ.Primary Educ. Educ., HealthEduc., Health

VenezuelaVenezuela Educ., HealthEduc., Health

BrazilBrazil HealthHealth Education, Education, InfrastructureInfrastructure

HousingHousing

ArgentinaArgentina EducationEducation HealthHealth

Fiscal ChangesFiscal Changes**Percentage of Public Expenditures Exercised by Subnational **Percentage of Public Expenditures Exercised by Subnational Governments before and after major decentralization reforms began** Governments before and after major decentralization reforms began**

Before (date)Before (date) After (1998)After (1998)

MexicoMexico 18% (1990)18% (1990) 28.66% 28.66%

GuatemalaGuatemala 8% (1985)8% (1985) 20%20%

VenezuelaVenezuela 17% (1989)17% (1989) 27.07%27.07%

BrazilBrazil 30.66% (1985)30.66% (1985) 37%37%

ArgentinaArgentina 36.436.4 (1980) (1980) 43.9%43.9%

By way of comparison…By way of comparison…

RegionRegion CountryCountry Subnational ExpenditureSubnational Expenditure

Latin AmericaLatin America 21%21%

South AsiaSouth Asia 53%53%

Europe and C. AsiaEurope and C. Asia 27%27%

OECDOECD 32%32%

United StatesUnited States 48.61%48.61%

United KingdomUnited Kingdom 22.10%22.10%

SwitzerlandSwitzerland 46.90%46.90%

SwedenSweden 35.35%35.35%

GermanyGermany 37.54%37.54%

ItalyItaly 24.45%24.45%

CanadaCanada 58.73%58.73%

Consequences of Consequences of DecentralizationDecentralization

Common denominator: Significant Common denominator: Significant change in the way different levels of change in the way different levels of government relate to each other and the government relate to each other and the emergence of subnational governments emergence of subnational governments as important political actorsas important political actors

But the functions and resources of But the functions and resources of subnational governments have grown subnational governments have grown faster than their policymaking authority faster than their policymaking authority and fiscal powers and fiscal powers

IV. State and SocietyIV. State and Society

Has decentralization improved democratic governance? Has decentralization improved democratic governance?

A decentralized state might be more efficient and responsive A decentralized state might be more efficient and responsive or more fragmented and unequalor more fragmented and unequal

Local government might be more accountable and responsive Local government might be more accountable and responsive (visible), allow for greater opportunities of active citizen (visible), allow for greater opportunities of active citizen engagement, and reconnect the state with existing forms of engagement, and reconnect the state with existing forms of public deliberation (Sen)public deliberation (Sen)

Local government might allow local elites and narrow interests Local government might allow local elites and narrow interests to have more influence (McConnell), enshrine homogeneous to have more influence (McConnell), enshrine homogeneous groups in power (Young), or obscure policy processes (weak groups in power (Young), or obscure policy processes (weak institutionalization)institutionalization)

Echoes of earlier debatesEchoes of earlier debates

Federalists vs. Anti-Federalists (US)Federalists vs. Anti-Federalists (US) Subsidiarity vs. Welfare State (Europe)Subsidiarity vs. Welfare State (Europe) Extension of citizenship through claims Extension of citizenship through claims

on the nation-state (Marshall) vs. on the nation-state (Marshall) vs. citizenship formation through local civic citizenship formation through local civic engagement (Tocqueville)engagement (Tocqueville)

These are not mutually exclusive These are not mutually exclusive options…options…

Preliminary Findings…Preliminary Findings…(Fragmentary and Anecdotal)(Fragmentary and Anecdotal)

New forms of participatory New forms of participatory politics in some municipalities politics in some municipalities (e.g., participatory planning, (e.g., participatory planning, participatory budgeting, open participatory budgeting, open councils)councils)

Transparency laws at state Transparency laws at state and local leveland local level

Greater local responsiveness Greater local responsiveness of political parties (e.g. local of political parties (e.g. local candidate selection candidate selection processes)processes)

Reinforcement of Reinforcement of authoritarian enclavesauthoritarian enclaves

Weak institutionalization of Weak institutionalization of local governmentslocal governments

No balance of power in local No balance of power in local governments governments

Fragmentation of party Fragmentation of party systemssystems

Fiscal imbalancesFiscal imbalances Loss of national policy Loss of national policy

coherencecoherence Inequities in resource Inequities in resource

distributiondistribution

Proposed ResearchProposed Research

Research Question: Has decentralization in Research Question: Has decentralization in Mexico improved democratic governance?Mexico improved democratic governance?

Two-step process:Two-step process: What has decentralization done to the accountability What has decentralization done to the accountability

and functioning of the national government?and functioning of the national government? How well do subnational governments do in How well do subnational governments do in

constructing democratic institutions and promoting constructing democratic institutions and promoting democratic citizenship? Four states/municipalities in democratic citizenship? Four states/municipalities in each; emphasis on social funds (Branch 33 & 20)each; emphasis on social funds (Branch 33 & 20)

Comparison with the literature on other countries in Comparison with the literature on other countries in Latin AmericaLatin America

Decentralization & Decentralization & National DemocracyNational Democracy

What has decentralization done to:What has decentralization done to: The political party systemThe political party system Coherence of policymakingCoherence of policymaking Fiscal balanceFiscal balance Fiscal equityFiscal equity

Subnational Governments Subnational Governments & Civil and Political & Civil and Political RightsRights

Civil Rights: freedom of expression; alternative Civil Rights: freedom of expression; alternative information; and associational autonomy information; and associational autonomy

Political Rights: elected officials; free and fair Political Rights: elected officials; free and fair elections; inclusive suffrage; right to run for elections; inclusive suffrage; right to run for office open to all citizensoffice open to all citizens

(Dahl)(Dahl)

(Note: only rights related to democratic process)(Note: only rights related to democratic process)

Subnational Governments Subnational Governments & Accountability& Accountability

Retrospective (vertical) accountability: Retrospective (vertical) accountability: regular elections, clear information on regular elections, clear information on policy decisions (transparency and policy decisions (transparency and access to information)access to information)

Horizontal accountability: meaningful Horizontal accountability: meaningful division of responsibilities among division of responsibilities among branches and levels of governmentbranches and levels of government

Participation & Deliberation Participation & Deliberation in Subnational Governmentsin Subnational Governments

Do people become more engaged in local democratic Do people become more engaged in local democratic institutions than national? Are there attempts to create institutions than national? Are there attempts to create new institutional channels that allow citizens to new institutional channels that allow citizens to participate in policymaking between elections? Do participate in policymaking between elections? Do these involve new ways of making collective decisions these involve new ways of making collective decisions (deliberative arenas)?(deliberative arenas)?

Thin democracy vs. strong democracy Thin democracy vs. strong democracy

Linking existing patterns of community decision-making Linking existing patterns of community decision-making with the political process (history of disassociation in with the political process (history of disassociation in Latin America)Latin America)

Inclusion in Subnational Inclusion in Subnational GovernmentsGovernments

Who participates in the political process Who participates in the political process often as important as the mechanism for often as important as the mechanism for participation (Young)participation (Young)

Particular concern for inclusion of ethnic Particular concern for inclusion of ethnic minorities (indigenous peoples)minorities (indigenous peoples)

How has the recognition of customary How has the recognition of customary authority fared?authority fared?

National IndicatorsNational Indicators

Party System Party System FragmentationFragmentation

Evidence of multiplication of political parties at Evidence of multiplication of political parties at a local level or frequent shifts by politicians a local level or frequent shifts by politicians among partiesamong parties

Policy CoherencePolicy Coherence Evidence that national government has lost Evidence that national government has lost control over social policycontrol over social policy

Fiscal BalanceFiscal Balance Evidence of excessive subnational debt; lack Evidence of excessive subnational debt; lack of controls on subnational indebtedness; lack of controls on subnational indebtedness; lack of controls on national government assuming of controls on national government assuming subnational debtsubnational debt

Fiscal EquityFiscal Equity Evidence that decentralization reforms have Evidence that decentralization reforms have exacerbated the unequal distribution of public exacerbated the unequal distribution of public resourcesresources

Subnational IndicatorsSubnational Indicators

IndicatorsIndicators

RightsRights Respect for rights to association, expression, Respect for rights to association, expression, access to information, right to run for election; direct access to information, right to run for election; direct or indirect coercion in votingor indirect coercion in voting

AccountabilityAccountability Rules for voting allow clear expression of citizen Rules for voting allow clear expression of citizen opinion; actions of elected officials can be opinion; actions of elected officials can be monitored; clear division of responsibilities for monitored; clear division of responsibilities for different levels of government/subnational branchesdifferent levels of government/subnational branches

Participation & Participation & DeliberationDeliberation

Evidence of active citizen engagement in & between Evidence of active citizen engagement in & between elections; creation of new channels for citizens to elections; creation of new channels for citizens to make their views known to elected officials; make their views known to elected officials; evidence of structured public debateevidence of structured public debate

InclusionInclusion Participation of ethnic minorities in political process; Participation of ethnic minorities in political process; successful incorporation of traditional decision-successful incorporation of traditional decision-making processes into legal frameworkmaking processes into legal framework

RelevanceRelevance

Empirical: What has decentralization done to Empirical: What has decentralization done to real-world democracies in Latin America real-world democracies in Latin America emerging from authoritarian rule (policy)emerging from authoritarian rule (policy)

Theoretical: How is democracy built; top-down Theoretical: How is democracy built; top-down through mass citizenship claims on the nation-through mass citizenship claims on the nation-state or bottom-up through engagement in state or bottom-up through engagement in local political communities; how does the local political communities; how does the history of center-periphery and state-society history of center-periphery and state-society relations structure this processrelations structure this process