Towards a Fiscal Pact : The Political Economy of Decentralization in Bolivia

The decentralization game in Bolivia has been altered quite significantly with the presence of new bargainers at the departmental level. Two, opposing groups have emerged and which follow intricate strategies to enforce their claims. The highland d...

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Main Author: Frank, Jonas
Format: Economic Updates and Modeling
Language:English
en_US
Published: World Bank, Washington, DC 2013
Subjects:
TAX
Online Access:http://documents.worldbank.org/curated/en/2010/05/16445913/towards-fiscal-pact-political-economy-decentralization-bolivia
http://hdl.handle.net/10986/12737
id okr-10986-12737
recordtype oai_dc
spelling okr-10986-127372021-04-23T14:03:04Z Towards a Fiscal Pact : The Political Economy of Decentralization in Bolivia Frank, Jonas ACCOUNTABILITY ADMINISTRATIVE CONTROLS ASSIGNMENT OF EXPENDITURES BALANCE SHEETS BANKS BORROWING BROKER BUDGET CONSTRAINT BUDGET POLICY BUDGETING CENTRAL GOVERNMENT CITIES CIVIL SERVICE COLLECTIVE ACTION COMMODITY PRICES COMPENSATION FUND CORPORATE INCOME TAX DEBT RULES DEBT SERVICE DEBT STOCK DECENTRALIZATION DECENTRALIZATION PROCESS DEVELOPMENT BANK DISTRICTS DOMESTIC FINANCIAL MARKET ECONOMIC REFORM ELECTRICITY EXPENDITURE EXPENDITURE ASSIGNMENTS EXPENDITURE DECENTRALIZATION EXPENDITURE NEEDS EXPENDITURE RESPONSIBILITIES EXPENDITURES EXTERNALITIES FEDERAL COUNTRIES FINANCES FINANCIAL MANAGEMENT FINANCIAL SUPPORT FISCAL ADJUSTMENT FISCAL COORDINATION FISCAL DECENTRALIZATION FISCAL INFORMATION FISCAL MANAGEMENT FISCAL RESPONSIBILITY FISCAL SURPLUSES FLOATING DEBT GOVERNOR GOVERNORS HARD BUDGET CONSTRAINTS HEALTH SERVICES HOUSING HUMAN RESOURCE INCENTIVE CONSTRAINTS INCOME TAX INDEBTEDNESS INSTITUTIONAL CAPACITY INTERGOVERNMENTAL FISCAL RELATIONS INTERNATIONAL DEVELOPMENT INTERNATIONAL STANDARDS LABOR UNIONS LAND REFORM LAWS LEVEL OF GOVERNMENT LOCAL FISCAL CAPACITY MACROECONOMIC ENVIRONMENT MAYORS MINISTRY OF ECONOMY MINISTRY OF FINANCE MUNICIPAL MUNICIPAL DEBT MUNICIPALITIES NATIONAL BUDGET NATIONAL TAXES NATURAL RESOURCES NEGATIVE EXTERNALITIES ODIOUS DEBT OIL PRICES OUTSTANDING DEBT PERSONAL INCOME POLITICAL AUTHORITY POLITICAL DECENTRALIZATION POLITICAL ECONOMY POLITICAL POWER POSITIVE EXTERNALITIES PREFECTURES PRIVATE BANKS PRIVATE SECTOR PRIVATE SECTOR PARTICIPATION PROPERTY OWNERSHIP PROPERTY RIGHTS PROVINCES PROVINCIAL LEVEL PROVISIONS PUBLIC PUBLIC EMPLOYEES PUBLIC EXPENDITURES PUBLIC SECTOR PUBLIC SECTOR EXPENDITURES PUBLIC SERVICE PUBLIC SERVICE DELIVERY PUBLIC SERVICES REDISTRIBUTION REFERENDA REFERENDUM RENEGOTIATION RENEGOTIATIONS RETURN REVENUE LOSS REVENUE SHARING REVENUE STREAMS REVENUE YIELD ROADS SECTOR MINISTRIES SEWAGE SOCIAL SERVICES SUB-NATIONAL SUBNATIONAL SUBNATIONAL DEBT SUBNATIONAL GOVERNMENTS SUBNATIONAL UNITS TAX TAX AUTHORITY TAX AUTONOMY TAX BASES TAX DECENTRALIZATION TAX RATES TAX REFORM TAX REVENUE TAX REVENUES TAXATION TAXES ON PROPERTY TOTAL PUBLIC EXPENDITURES TRANSPARENCY URBAN SERVICES WAGES The decentralization game in Bolivia has been altered quite significantly with the presence of new bargainers at the departmental level. Two, opposing groups have emerged and which follow intricate strategies to enforce their claims. The highland departments are strongly aligned to the Movimiento al Socialismo (MAS) party and the charismatic leadership of the country's first indigenous leader Evo Morales. The Media Luna departments in the lowlands demand autonomy and seek a greater share of the national pool of hydrocarbon revenue. The paper discusses how a fiscal pact can be forged to bring agreement around the most pressing issues. It considers several bargaining packages which could be crafted and analyzes the extent to which decentralization principles need to be sacrificed in order to achieve agreement among competing actors. It is likely that these agreements may eliminate some inefficiency, but also create others. An important insight is that the fiscal pact should be renegotiated at certain pre-defined times, in order to provide flexibility and adjust to the constraints of actors to engage in inter-temporal commitments. Explicit exit options would enhance the possibilities for agreement. 2013-03-14T19:18:05Z 2013-03-14T19:18:05Z 2010-05 http://documents.worldbank.org/curated/en/2010/05/16445913/towards-fiscal-pact-political-economy-decentralization-bolivia http://hdl.handle.net/10986/12737 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Economic & Sector Work :: Economic Updates and Modeling Economic & Sector Work Latin America & Caribbean Bolivia
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic ACCOUNTABILITY
ADMINISTRATIVE CONTROLS
ASSIGNMENT OF EXPENDITURES
BALANCE SHEETS
BANKS
BORROWING
BROKER
BUDGET CONSTRAINT
BUDGET POLICY
BUDGETING
CENTRAL GOVERNMENT
CITIES
CIVIL SERVICE
COLLECTIVE ACTION
COMMODITY PRICES
COMPENSATION FUND
CORPORATE INCOME TAX
DEBT RULES
DEBT SERVICE
DEBT STOCK
DECENTRALIZATION
DECENTRALIZATION PROCESS
DEVELOPMENT BANK
DISTRICTS
DOMESTIC FINANCIAL MARKET
ECONOMIC REFORM
ELECTRICITY
EXPENDITURE
EXPENDITURE ASSIGNMENTS
EXPENDITURE DECENTRALIZATION
EXPENDITURE NEEDS
EXPENDITURE RESPONSIBILITIES
EXPENDITURES
EXTERNALITIES
FEDERAL COUNTRIES
FINANCES
FINANCIAL MANAGEMENT
FINANCIAL SUPPORT
FISCAL ADJUSTMENT
FISCAL COORDINATION
FISCAL DECENTRALIZATION
FISCAL INFORMATION
FISCAL MANAGEMENT
FISCAL RESPONSIBILITY
FISCAL SURPLUSES
FLOATING DEBT
GOVERNOR
GOVERNORS
HARD BUDGET CONSTRAINTS
HEALTH SERVICES
HOUSING
HUMAN RESOURCE
INCENTIVE CONSTRAINTS
INCOME TAX
INDEBTEDNESS
INSTITUTIONAL CAPACITY
INTERGOVERNMENTAL FISCAL RELATIONS
INTERNATIONAL DEVELOPMENT
INTERNATIONAL STANDARDS
LABOR UNIONS
LAND REFORM
LAWS
LEVEL OF GOVERNMENT
LOCAL FISCAL CAPACITY
MACROECONOMIC ENVIRONMENT
MAYORS
MINISTRY OF ECONOMY
MINISTRY OF FINANCE
MUNICIPAL
MUNICIPAL DEBT
MUNICIPALITIES
NATIONAL BUDGET
NATIONAL TAXES
NATURAL RESOURCES
NEGATIVE EXTERNALITIES
ODIOUS DEBT
OIL PRICES
OUTSTANDING DEBT
PERSONAL INCOME
POLITICAL AUTHORITY
POLITICAL DECENTRALIZATION
POLITICAL ECONOMY
POLITICAL POWER
POSITIVE EXTERNALITIES
PREFECTURES
PRIVATE BANKS
PRIVATE SECTOR
PRIVATE SECTOR PARTICIPATION
PROPERTY OWNERSHIP
PROPERTY RIGHTS
PROVINCES
PROVINCIAL LEVEL
PROVISIONS
PUBLIC
PUBLIC EMPLOYEES
PUBLIC EXPENDITURES
PUBLIC SECTOR
PUBLIC SECTOR EXPENDITURES
PUBLIC SERVICE
PUBLIC SERVICE DELIVERY
PUBLIC SERVICES
REDISTRIBUTION
REFERENDA
REFERENDUM
RENEGOTIATION
RENEGOTIATIONS
RETURN
REVENUE LOSS
REVENUE SHARING
REVENUE STREAMS
REVENUE YIELD
ROADS
SECTOR MINISTRIES
SEWAGE
SOCIAL SERVICES
SUB-NATIONAL
SUBNATIONAL
SUBNATIONAL DEBT
SUBNATIONAL GOVERNMENTS
SUBNATIONAL UNITS
TAX
TAX AUTHORITY
TAX AUTONOMY
TAX BASES
TAX DECENTRALIZATION
TAX RATES
TAX REFORM
TAX REVENUE
TAX REVENUES
TAXATION
TAXES ON PROPERTY
TOTAL PUBLIC EXPENDITURES
TRANSPARENCY
URBAN SERVICES
WAGES
spellingShingle ACCOUNTABILITY
ADMINISTRATIVE CONTROLS
ASSIGNMENT OF EXPENDITURES
BALANCE SHEETS
BANKS
BORROWING
BROKER
BUDGET CONSTRAINT
BUDGET POLICY
BUDGETING
CENTRAL GOVERNMENT
CITIES
CIVIL SERVICE
COLLECTIVE ACTION
COMMODITY PRICES
COMPENSATION FUND
CORPORATE INCOME TAX
DEBT RULES
DEBT SERVICE
DEBT STOCK
DECENTRALIZATION
DECENTRALIZATION PROCESS
DEVELOPMENT BANK
DISTRICTS
DOMESTIC FINANCIAL MARKET
ECONOMIC REFORM
ELECTRICITY
EXPENDITURE
EXPENDITURE ASSIGNMENTS
EXPENDITURE DECENTRALIZATION
EXPENDITURE NEEDS
EXPENDITURE RESPONSIBILITIES
EXPENDITURES
EXTERNALITIES
FEDERAL COUNTRIES
FINANCES
FINANCIAL MANAGEMENT
FINANCIAL SUPPORT
FISCAL ADJUSTMENT
FISCAL COORDINATION
FISCAL DECENTRALIZATION
FISCAL INFORMATION
FISCAL MANAGEMENT
FISCAL RESPONSIBILITY
FISCAL SURPLUSES
FLOATING DEBT
GOVERNOR
GOVERNORS
HARD BUDGET CONSTRAINTS
HEALTH SERVICES
HOUSING
HUMAN RESOURCE
INCENTIVE CONSTRAINTS
INCOME TAX
INDEBTEDNESS
INSTITUTIONAL CAPACITY
INTERGOVERNMENTAL FISCAL RELATIONS
INTERNATIONAL DEVELOPMENT
INTERNATIONAL STANDARDS
LABOR UNIONS
LAND REFORM
LAWS
LEVEL OF GOVERNMENT
LOCAL FISCAL CAPACITY
MACROECONOMIC ENVIRONMENT
MAYORS
MINISTRY OF ECONOMY
MINISTRY OF FINANCE
MUNICIPAL
MUNICIPAL DEBT
MUNICIPALITIES
NATIONAL BUDGET
NATIONAL TAXES
NATURAL RESOURCES
NEGATIVE EXTERNALITIES
ODIOUS DEBT
OIL PRICES
OUTSTANDING DEBT
PERSONAL INCOME
POLITICAL AUTHORITY
POLITICAL DECENTRALIZATION
POLITICAL ECONOMY
POLITICAL POWER
POSITIVE EXTERNALITIES
PREFECTURES
PRIVATE BANKS
PRIVATE SECTOR
PRIVATE SECTOR PARTICIPATION
PROPERTY OWNERSHIP
PROPERTY RIGHTS
PROVINCES
PROVINCIAL LEVEL
PROVISIONS
PUBLIC
PUBLIC EMPLOYEES
PUBLIC EXPENDITURES
PUBLIC SECTOR
PUBLIC SECTOR EXPENDITURES
PUBLIC SERVICE
PUBLIC SERVICE DELIVERY
PUBLIC SERVICES
REDISTRIBUTION
REFERENDA
REFERENDUM
RENEGOTIATION
RENEGOTIATIONS
RETURN
REVENUE LOSS
REVENUE SHARING
REVENUE STREAMS
REVENUE YIELD
ROADS
SECTOR MINISTRIES
SEWAGE
SOCIAL SERVICES
SUB-NATIONAL
SUBNATIONAL
SUBNATIONAL DEBT
SUBNATIONAL GOVERNMENTS
SUBNATIONAL UNITS
TAX
TAX AUTHORITY
TAX AUTONOMY
TAX BASES
TAX DECENTRALIZATION
TAX RATES
TAX REFORM
TAX REVENUE
TAX REVENUES
TAXATION
TAXES ON PROPERTY
TOTAL PUBLIC EXPENDITURES
TRANSPARENCY
URBAN SERVICES
WAGES
Frank, Jonas
Towards a Fiscal Pact : The Political Economy of Decentralization in Bolivia
geographic_facet Latin America & Caribbean
Bolivia
description The decentralization game in Bolivia has been altered quite significantly with the presence of new bargainers at the departmental level. Two, opposing groups have emerged and which follow intricate strategies to enforce their claims. The highland departments are strongly aligned to the Movimiento al Socialismo (MAS) party and the charismatic leadership of the country's first indigenous leader Evo Morales. The Media Luna departments in the lowlands demand autonomy and seek a greater share of the national pool of hydrocarbon revenue. The paper discusses how a fiscal pact can be forged to bring agreement around the most pressing issues. It considers several bargaining packages which could be crafted and analyzes the extent to which decentralization principles need to be sacrificed in order to achieve agreement among competing actors. It is likely that these agreements may eliminate some inefficiency, but also create others. An important insight is that the fiscal pact should be renegotiated at certain pre-defined times, in order to provide flexibility and adjust to the constraints of actors to engage in inter-temporal commitments. Explicit exit options would enhance the possibilities for agreement.
format Economic & Sector Work :: Economic Updates and Modeling
author Frank, Jonas
author_facet Frank, Jonas
author_sort Frank, Jonas
title Towards a Fiscal Pact : The Political Economy of Decentralization in Bolivia
title_short Towards a Fiscal Pact : The Political Economy of Decentralization in Bolivia
title_full Towards a Fiscal Pact : The Political Economy of Decentralization in Bolivia
title_fullStr Towards a Fiscal Pact : The Political Economy of Decentralization in Bolivia
title_full_unstemmed Towards a Fiscal Pact : The Political Economy of Decentralization in Bolivia
title_sort towards a fiscal pact : the political economy of decentralization in bolivia
publisher World Bank, Washington, DC
publishDate 2013
url http://documents.worldbank.org/curated/en/2010/05/16445913/towards-fiscal-pact-political-economy-decentralization-bolivia
http://hdl.handle.net/10986/12737
_version_ 1764421448422653952