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Fiscal decentralization policy and budgetary discretion.

The concept of fiscal decentralization, as part of the body of theory of public economics, seeks to determine what level of government should perform what function and how these activities should be funded.
Oates (1972) and Musgrave (1991) suggest that the functions of stabilization and distribution is decentralized, ie, are assigned to the national level.
On the other hand, despite the allocation of goods and services is conducted by the market, there are some who by virtue of their non-rivalry and non- exclusion in consumption (public goods) can only be provided by the government (public sector). However, for a more efficient allocation requires the participation of others in addition to national levels, as these assets are based on the features and coverage of them.
These efficiency gains are also linked to the principle of subsidiarity which states: "whenever feasible, public goods should be provided by the lowest level of government possible, the rule otherwise, alternatively, by the next higher level , the exception "(Macon 2002). The theory also
shows that, at this level, the costs to fund such public goods are more easily assimilated by the taxpayers of the jurisdiction that, when confronted with the costs of alternative levels of service,
demonstrate their preferences by voting for rival political candidates or moving to other sub divisions vote with their feet (Tiebout 1956). In this respect, regional and local public policy can approach the market efficiency in the allocation of local public goods (regional) fixing prices and relying on the local political process (regional) and mobility of citizens to balance the market. Funding for
regional public goods includes three mechanisms: the assignment of own revenue sources, the use of intergovernmental fiscal transfers and the possibility of use of subnational borrowing (Ebel 2000). In the first case, is the decentralization of tax revenue. The theory identifies as potential sub-national taxes to those where the subnational government sets the rate, base, raises and benefits thereof.
Keep in mind two basic principles in setting the subnational financing: firstly, the own revenue sources should, at least in rich jurisdictions, be able to fund from its own tax on the provision public goods that are consumed by residents of the jurisdiction, and second, to the extent possible, subnational taxes should be levied only on residents of the jurisdiction and preferably linked to public goods are provided. In turn, these should take into account three major issues: subnational taxes should not distort the allocation of resources, ensure a subnational tax effort and should not lose sight of the leveling of those jurisdictions that do not meet your needs its own fund spending (Bird 2000).
is known that when the lower levels of government have greater own-source taxation to finance their spending, Government spending tends to be lower and you get greater efficiency (Bird 2000). Also, a true fiscal decentralization implies that subnational governments are financed exclusively from their own taxes and having full autonomy in fiscal management on their network. Therefore, decentralization of public finances, to the extent possible, should exhaust first, a self-financing via taxation, before going to the transfers.
In general, the tax under a decentralized country assumes that subnational jurisdictions should provide public goods at an average level, by financing and exerting an average level of tax collection. However, it is common that there are jurisdictions that are unable to provide an average level of such public goods, so the need to reduce fiscal inequalities. Intergovernmental fiscal transfers are the most common tool used by the national government to close these gaps between income tax and subnational expenditures (Raich 1999). Another factor to use
transfers is the search for allocative efficiency, ie to address interjurisdictional externalities in the allocation of resources, neutralizing the presence of spillovers.
However, excessive dependence on transfers by subnational levels of government occurs, if these were not designed properly, negative effects on subnational fiscal behavior, which discourages fiscal correspondence both as regional tax effort and / or local level. The fiscal correspondence principle is a key element for the decentralization of public finances that it links to subnational expenditures with own sources of revenue.
On the other hand, transfers affect subnational fiscal stress, which leads to a situation known as a common tragedy. In it, subnational governments relax their own revenue, which involves high political costs, and resort transfers as a source of easy revenue. That is, do not cover the full cost of their spending needs, and must be financed with resources from other levels of government and / or resources from other jurisdictions, through fiscal transfers. In broad terms, this affects the general government, as the overall tax burden does not cover general government spending.
So why transfers are used as a mechanism for subnational financing without first exhausting the possibilities of a self-funded? The answer may be associated with intergovernmental transfers in practice they are used simply for political reasons: to ensure control of the Government on the activities of subnational governments. This obviously does not contribute to further efficiency gains through decentralization of public finances.
Progress on political decentralization at the regional level need to be compensated with equivalent tax schemes, that would not only advance the decentralization of public sector but also, primarily, to help improve governance in the regions of the country linking provision of public goods with democratic processes at the subnational level.

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La Generación H

Much of the baby-boom generation of 70 suffers Holocaust property. The culture usually instituted for the purchase of floor has played a trick on many. Now you begin to see clearly by all, because the housing bubble denied by the majority, and burst once crudely put it clear to everyone.

In fact, even the economic minister said that the bursting of the housing bubble were taken by surprise ( see article). Of course, some getting caught by surprise if you deny its existence. Obviously the Government and other public authorities were unwilling to stop the excellent collection of taxes from the inflated housing prices.

The consequences are we here, strongly reflected in Generation H ( see article). Generation that has suffered mass wherever he has gone, and as expected also at home, which resulted in having to pay a high price for a commodity vital to its development. Should be weighed against other alternatives such as rent, but the desire to purchase, duly fed by the media and popular belief, they played a dirty trick.

Governments knew, but they are renewed every 4 years, the great ills of the population for a long time do not worry, watch the short term. They could have opted for policies more appropriate for countries most advanced in Europe, promoting the rent, but that would have meant a cut of the ostentatious estate benefits they have achieved. Generation H

must learn from its history, must anticipate future problems with housing has clearly been wrong, but still has time to prepare for other problems that are likely to suffer, for example is pensions. You have to ignore the voices that ensure the proper functioning of the pension system because of overcrowding in this service will do to lower the amount of pension or simply can not get paid. Therefore, should save yourself for a happy retirement to enjoy your home at last paid after 30 years of mortgage slavery.

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FISCAL DECENTRALIZATION AND STRENGTHENING THE LATINO-AMERICAN CITY: A urgent challenge.

Since the eighties, Latin American and Caribbean initiated a comprehensive program structural reforms, highlighting the progress of decentralization and democratic deepening, that put the municipal center of debate regarding the organization of government and, in particular, in search of a better allocation of responsibilities and resources to promote effective delivery of services, especially social skills.
This process involves the proper distribution of public sector responsibilities among different levels of government, each with its own advantages in the provision of services and activities aimed at improving the quality of life, the allocation stable sources of income allowing localities to assume the roles entrusted, and, ultimately, increase the effectiveness of the entire public sector.
While decentralization raises high expectations and potential for strengthening municipal development, it also poses serious challenges and challenges common to most countries of the region, which we state below.

1. Promoting greater efficiency and transparency of local governments
is undisputed that the arguments of economic efficiency and social, and political development opportunity provided by decentralization: it provides a way to improve the delivery of government services and improve information systems, given the proximity between service providers and beneficiaries.
is important to recognize that this is a healthy process that has gained ground in the practices of many governments, while recent and so many difficulties, began to gain ground in governmental and legislative discussions of the Central American countries and the Caribbean.
The decentralization argument leads to the level of the lender, given that it validates the argument of efficiency due to the proximity between the provider and recipient of the service, either the school or health center, beyond the same municipality.
For Therefore, in this field is important to have good mechanisms to assess whether they are meeting the purposes of economic, social and political issues that are pursued with the decentralization process. Through adequate monitoring and evaluating the process and the promotion of transparent accountability and effective (accountability). It is urgent to develop operational mechanisms to measure the efficiency in the delivery of government services, the way the instruments are being promoted citizen participation and how it is helping to improve equity in the countries.

2. Advancing equity decentralized public spending
Despite the heterogeneity of the processes, the recent experience of Latin America can say that the results in terms of equity so far are disturbing compared to initial expectations. In fact, the areas with greater fiscal capacity development are greater than the towns lower fiscal capacity.
It is therefore clear that a major function in a proper transfer system must not only be the redistribution of income but also management skills.
The main support of national institutions through its programs and local building projects should be directed to the municipalities as organizers services, and particularly to geographical areas behind, through continuous monitoring of the decentralization process. Hopefully this will generate greater regional equity in the country.
From the territorial perspective, the town has more real information for the prioritization of investments, and great responsibilities ahead: the administration of social services to achieve greater efficiency and more direct targeting of public spending towards sectors of the population more depressed: that is, greater social equity.
Finally, since the community is expected to open real opportunities for the participation of civil society the design, implementation and monitoring of agreed decisions on strategies for development, contribute to equity in spending and ultimately to the democratization of society.

3. Ensure greater local autonomy and fiscal responsibility
American practice shows that municipalities are raising a small proportion of revenue from own resources, reflecting the fragility of local finances and the high dependence on transfers. For example, in the experience of Brazil, Bolivia, Colombia and Chile, among others, on average own revenues constitute about half of revenue transfers represent total and the remaining percentage.
This situation warrants the need for what we might call a new fiscal pact at the territorial level, to promote a stronger financial position and sustainable meet the increased responsibilities that have been taking these levels. In other words, a sustainable decentralization process requires both appropriate allocation of responsibilities and financing schemes based on greater fiscal responsibility on the part of localities.
The direction of reforms should aim at greater autonomy for municipalities to generate their own income based on the political game between local government and citizens who demand their political support. In the process of decentralization, the system generates a political economy and economic efficiency much more satisfactory than a system based on the excessive dependence on intergovernmental transfers.
Central American countries established constitutional autonomy of municipalities, although in practice this contrasts with the restrictive framework (some of them to non-existent) on the subject does not allow a minimum tax to local tax.
order not to confuse us, there is little they can do in a town tax, by loa lack of authority and so failure to apply various taxes primarily local in nature. For example, El Salvador does not have a property tax, a major local tax funding in Latin America. And while in the Dominican Republic is expected nationally, and their recovery is almost minimal.
Additionally, there is a noticeable stiffness in the local tax system based on uniform tax rates set centrally, often with outdated
fixed values, which together contribute to the low local tax burden that exists in most countries Isthmus and the Caribbean. Remember, as an example, local governments in countries like El Salvador and the Republic Dominican has a tax burden to near zero.
Reinforcing this, the local tax structure of various countries in the region remains precarious, with excessive taxes lacking a significant revenue-raising capacity, obsolete and difficult to administer. Paraguay is the case with 40 charges and the Dominican Republic has about 70 local taxes,
the vast majority of them (90%) of very low deadweight.
Despite the weakness of the tax codes in recent years have promoted proposals to simplify and modernize the local tax administration, which begin to be more important in the governmental discussions.
mainly in Nicaragua have dominated the principles of autonomy and self-financing of municipalities. In this country, local taxes have the greatest weight in the income structure of the entire Latin American region. While in Brazil and Colombia, taxes weigh 23% and 35% respectively in Nicaragua this figure averaged 67%. This does not mean that resources are adequate and are better able to meet the growing needs of local spending.
In summary, fiscal decentralization is not very effective if municipalities do not have adequate resources to enable them to responsibly advance the provision of services assumed.
The strengthening of local own revenues not only requires modernizing the current tax administration, especially the main tax. Since property tax, industrial patents, trade and services and the tax
motor vehicles, representing approximately 70% of total municipal revenue in the countries of the region.
also demand more creative financial incentives to promote the flow of new resources, including the same mobilization of private capital to finance municipal infrastructure. This is the case of contributions of improvements and concession contracts, instruments underutilized and untapped in the cities of the region. In the experience of Central American countries is quite limited its use and participation in local funding structure.

4. Ensure greater fiscal prudence and discipline locally
The main reason that a large group of economists are wary of decentralization refers to the dangers and risks that it offers. Here the question is not whether to give priority to macro-economic control, but how to design institutions that make consistent profits from economic efficiency, social and political decentralization with adequate macroeconomic control.
In this context, we must recognize that for countries like Brazil and Argentina, the issue of territorial debt became the core of the problem of macroeconomic balance, a situation quite different from the countries of Central America and the Caribbean.
regard to this matter and given the experience of the region, there is no doubt that it is necessary to develop tools to control the level of indebtedness of local authorities. In other words, rules are needed before more ex-set clear limits on local borrowing.
In this sense, Latin America and have been developing some experiences interesting. In Colombia there is recently an evaluation system for defining the debt capacity of territorial entities, known as "traffic light system." This system is fed with information on the relationship between debt level and current revenues of the respective entity, or debt service and operational savings.
In Central American countries is interesting to discuss this type of legal development since the issue of credit and its use is very early stage. Do not try to force access to these resources, rather limited by the same weakness in the ability to save many of the municipalities of the Isthmus, but contemplate with its proper regulation and responsible use as an integral part of local funding.

5. Redesigning intergovernmental transfers, a pending task
intergovernmental transfer systems in Latin America have generally been assessed as sub-optimal from the point of economically and politically due to the rigidity in their design and lack of adequate incentives.
Although it is a priority in the region, its recent development is weak and the Central American countries (El Salvador and the Dominican Republic relies heavily on this source of income among countries in the study.) The redesign of transfers must incorporate new criteria that take into account factors of income distribution and poverty, as cost of services, local tax effort and administrative efficiency.
The situation of Central American countries are characterized by the presence of what we call strong horizontal fiscal imbalances (including municipalities) that fully justify an effort to design a transfer system to reduce political interference (the case of Costa Rica) and discretion central level (the case of El Salvador).
These issues undermine local autonomy and promoting greater transparency and stability in their determination and distribution criteria, whose purpose fundamental socioeconomic inequalities are correct at the territorial level and the disparities between the municipal tax base within the country.

6. Take greater political will and commitment to decentralization
Decentralization as essentially political process must have a clear constitutional and legal framework, and requires the deepening of a culture decentralist. That is, it requires the construction of a new cultural heritage mainly based on "trust" between the different levels and actors in the process.
In practice the central level distrust of the ability of localities to solve their problems and act exclusively in different sectors. Also, in some cases municipalities do not articulate and act suspiciously in front of the central level.
How to overcome this crisis of confidence that exists in our countries? Surely it can not be resolved simply by issuing laws and regulations, requiring substantial changes to ensure a modern and participatory. It is essential that programs to strengthen local management and human resources to ensure a greater commitment to the process.
In the recent Summit of Presidents in Latin America and the Caribbean and in their own meetings, the Central American leaders have expressed support for decentralization as one of the strategies to strengthen local governments.
However, it is essential to ensure that it not only reflected in governmental and legislative discussions but actually translates into a serious political commitment to the adjustments and recommendations to be promoted in government agendas.
In short, in these countries there is some political will and a more sensitive but equally cautious (if not fearful) to deepen the debate on
decentralist process. Obviously each country has institutions and sectors strongly committed to the executive and legislative discussions, and technical support to municipalities.

7. Promote cooperation and sharing of best practices
countries in the region have tried to take a more pragmatic attitude against the advances of the process, adopting different practices to address many of the difficulties mentioned.
But perhaps they have not been as widespread as the same problems, why it is important to give a special prominence. It is clear that these best practices have addressed the various fields of the problem, understanding on the financial options that have promoted the modernization and strengthening of local taxation, and the application of new revenue sources that mobilize private capital for local development. Overall, a greater effort of local self-financing.
Furthermore, the incorporation of rationality of the mechanisms of intergovernmental transfers.
schemes also have been looking for community participation and promote greater accountability effective interference in the control communities or social control spending, and finally, the local borrowing regulations designed to minimize potential macroeconomic effects.
Undoubtedly, this knowledge is a basic element that should make countries that are just beginning their discussions (Paraguay, Venezuela and most Central American countries), through the exchange and dissemination of successful experiences among municipalities of the countries of the region.
In this regard, technical cooperation among countries is a recent update field and in great demand in countries of the region, which warrants an openness to discussion.
also essential assistance could be provided by international agencies and organizations actively involved in the issue.
To summarize, the progress of decentralization in the region and the experience gained so far (I mean the successes and failures) is a great asset we have and can further potentiate through technical cooperation.
also the experience of several countries to suggest that there are risks that must be present, including the deterioration in the quality of services, political patronage, poor managerial and technical capacity of local governments, the potential macroeconomic impacts. On them must be worked on several fronts to strengthen the institutional locations.

A FINAL REFLECTION MODE
Municipalities of Latin American and Caribbean region have to face in the coming years the challenge of achieving greater coverage and quality of basic services.
The road is not easy. A fundamental premise for this is the most fiscal and political responsibility of the locations seen in a tax modernization and greater local tax effort, an improved transfer systems, responsible use of credit resources and effective control of expenses.
The aspects mentioned are, among others, the basis for greater efficiency and effectiveness of governance and means moving fronts particularly in institutional and process management, accompanied by a greater degree of consensus on its implementation and political will. That is, a new fiscal pact locally.
Finally, the strengthening of the municipality Central America and the Caribbean is an ongoing process to refine and deepen their achievements are modest in some areas and insufficient in others. Therefore, these reflections should enrich the debate, clearly identify important topics and to generate policy recommendations on the approach of a working agenda for the coming years.

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municipal management and sustainable development

By: Patricia Gillezeau B.
In the past decade, local development has been the response of the localities and regions to the great challenges they face and the inadequacy of traditional models of development, state reform and decentralization, proposing outputs to the mobilization of capital, land dynamics, new forms of accumulation, new approaches to exploration of growth, new employment, enhancement of endogenous resources, among others.
These processes comprise of energizing mechanisms to promote local entrepreneurship and keep alive the community and their cultural identities, leading by Arocena (1995), the road that goes from cultural to economic, "Where the need for create wealth and safeguard natural resources, the urgency to create jobs and meet the essential needs of the population.
According to Di Pietro (2001), there is no definition local development only or exclusive, so that presents some considerations about it, that of Boisier who notes that there is confusion in its meaning, since it is a practice without theory and has at least three points of origin in response to macroeconomic crisis and the adjustment of the countries on the other side as a dialectical global / local, and ultimately, as a logical expression of horizontal adjustment. For its part Vásquez, defines highlighting the economic and partnerships between sectors.
addition, Coraggio (1999) states that all local development process must be supported from the perspective of endogenous conditions and comprehensive to mobilize financial resources without degrading the environment, skills and individual and collective will of the local society, creating a spirit of dynamism, innovation and expectations to make desirable changes are possible.
From now on all processes, is inserted in the local, national entity analysis, planning and action (Di Pietro, 2001), as pointed out by the municipality and its cities are in the new theater of operations with autonomy and legitimacy democratic, is now the natural agent of development, which require a series of relationships, behaviors, patterns and common conventions articulated by the actors that face up to the universal from its own specificity.
Today, local development is seen as a mechanism for improving local socio-economic empowerment in support of its political autonomy. Reason, it is considered, the municipality in position to create and stimulate economic and social development, so vital is the integration and participation of communities in the deliberations and actions to take (Manual of the Federation of Municipalities , 1999).
is essential that due to changes facing the world, the municipality will organize and plan their actions, not be left to chance the development of peoples, as this ensures community to prepare its plan, to achieve the goals, and most importantly, know the resources available for implementation of actions has to follow, it will, undoubtedly, the ability to establish responsibilities and ensuring successful outcomes. This will
then points out that the City Council has appreciated, from a passive role as service provider to an active role, as manager of innovative environments, becoming also the new center of power and decision, that as result of state reforms and the decentralization process occurred in almost all countries in Latin America and the Caribbean.
Decentralization understood as a process of distribution of power from the center to the periphery, helps local authorities to assume their own destiny (Velasquez, 2001), almost twenty years after its inception, has been a process and inconsistent, since in most cases, appears as a coexistence of traditional and modern patterns of regulation of insurance state and legitimacy, without a uniform approach to goals. However, undoubtedly offers perspectives to strengthen and enrich a new quality of governance, since it allows, as noted, arguing Albuquerque (2001), providing expertise, resources and responsibilities to different instances authorities, in addition to the mobilization of social actors involved in the process, that everything is referred to theorizing about this style of development, is desirable.
Consequently, despite everything, we must not forget that the success and development of these local processes, the decentralization of government services and responsibilities to regional and local levels, accompanied by an appropriate allocation of funds is a goal fundamental core of the processes required to state reforms. At the same time taking into account the fragile nature of the democratization process of Latin American countries, this can open Pandora's box and create maneuvering clearances and access to resources for elites and traditional interest groups (Vellinga, 1998).
In this article we present the opinion of Gómez (2002) who argues that this process results in a transfer and redistribution of global economic and political power associated with the reorganization of the global economic system and the integration of regional economies to this system through the adoption of schemes of neo-liberal market economies. In another sense, continues to be the author, decentralization has also been seen as a way forward for the democratization of these powers, allowing the realization of institutional changes and civil society participation in the public sphere.
Clearly, decentralization is one of the key ideas which accompanied the attempts of modernization and state reform in Latin America in recent decades.
In this same vein, it should be noted that a key element of these processes and inherent decentralization can not be forgotten, is the participation, as is the instrument to channel social demands, is the complement of mechanisms representation and creation of spaces for citizens to participate directly in decision-making, is a form of individual or collective effort involving rational and intentional individual or group, looking for specific achievements through cooperative behavior (Velasquez, 2001).
To Kliksberg (2002), participation has become the center stage of development, the author endorses this statement noting that community involvement radically change the achievements of the goals of the projects, with concrete results and above traditional schemes. The community can now develop a sense of ownership of projects through their participation, it will mobilize its energies and efforts to ensure that projects move forward and strengthen the likelihood of sustainability.
Finally, it might be noted that participation has become an imperative, a condition of survival, an instrument that opens the dignity and opportunities for development, review or simply as Ice (2002, cited by Kliksberg participation means giving back to the right people it belongs.
addition to these elements can add those presented by Edil (2001) to some extent collide with the above.
Considering the above may be noted that the development of the country if you elect this alternative, would feature than purely economic vision, including highlight: - Valuation of companies, as well as efforts attempted to raise in the economic, social and cultural rights. - Autonomy of decisions and the investigation of endogenous models appropriate to each historical, cultural and ecological. - Satisfaction of human needs. - Importance of participation in the redistribution of the benefits of development.
and mark a transition between traditional and strategies that guide the equitable and ecologically prudent, reconciling humanity with nature in order to respond to the key questions that concern the human condition. Seen thus, this form of development planning can be defined as Progent, PROEmpleo and Pronaturaleza, giving high priority to reducing poverty, increasing productive employment, social integration and environmental regeneration, and therefore, the reform of the state.

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participatory budgeting in Latin America: the social legitimacy to institutional legalization

Jaime Vasconez / Miguel Angel Bossano
International Urban Management Centre, CIGU

end of the decade of the eighties, some municipalities in Brazil's cities began pilot processes for citizens could participate directly in making decisions about the fate of some of the resources available in their institutional budgets.
Such processes, among which was marked from the beginning that of Porto Alegre, both by the hierarchy of that city as his radical experienciano were coincidental, but appropriate and well thought out initiatives to strengthen the rebirth of Brazilian democracy, after the difficult years of military dictatorship that South American country to suffer.
In short, these earlier initiatives were replicated in other Brazilian cities and also gradually municipalities have been imitated by other Latin American countries. At the beginning of this century, and some European cities have undertaken similar processes in their own localities. In a study conducted in 2004 and updated in 2005, a leading international specialist on the subject, Yves Cabannes, 2 analyzes twelve developing participatory budgeting processes in Brazilian cities, those who added another twelve cities in Argentina, Uruguay, Bolivia, Peru, Ecuador, Colombia, Mexico and El Salvador also be significant will include six other processes at work in cities in Spain, Portugal, France, Italy and Germany. Such decisions
is also no coincidence. Among many other contributions, there is widespread perception that the participatory budget is a useful mechanism for strengthening social ties and to improve local governance by way of strengthening and invigorating democracy is a suitable procedure to deal poverty and social inequality and that, moreover, contributes significantly to promoting transparency in the management and accountability on the management of public resources and is, therefore, a mechanism to improve public sector performance, apart from which happens to be a good antidote against corruption.
is recognized that one of the virtues of participatory budgeting is its flexibility and ability to adapt to the realities of a variety of contexts: It is practiced equally in small rural or large urban centers, in the old, rich and consolidated European cities or in the recent, and extremely poor squatter settlements in the developing world. In fact, This can be attributed largely to the fact that this is not a finished theory or a doctrine under unrelenting standards, but rather a set of processes on a pilot basis, subject to a few common ground rules, which by the way the actors involved are able to change periodically from the lessons that generates and accumulates experience. One factor that virtue, at least in many Latin American countries is that in this region the autonomy of municipalities was soon recognized, from the colonial period itself and has established itself firmly in the institutional structure of the region. Indeed, it is common to Local governments in Latin American countries their ability to legislate, through regulations and local ordinances, the operation of the management of their jurisdictions, but usually also have to undergo the procedures and mechanisms for monitoring and exercising control over government bodies. According Cabannes (op.cit. 2005), the functioning of participatory budgeting in Brazilian cities is usually based on a simple rule, which issues and periodically adjust the municipality itself, apparently without requiring additional brackets have character legal or normative.
situation is different, as indicated Cabannes, in the English-American cities that have adopted participatory budgeting. In them, it seems inevitable to issue an order - together with the operating regulations for its implementation, which should be discussed and approved by the municipal legislative body to have legal force and effect within the municipality. This requirement is, apparently, essential not only to regulate the operation of the participatory budget process, as in Brazil, but also to confer legal validity.
addition, it also aims to provide future sustainability of the process, since an ordinance has the force of law in the local context and can only be repealed by a decision of the Municipal Legislature itself. Of thereby seeking to avoid a policy shift back foot municipal executive in the exercise of participatory budgeting, as has happened in some Brazilian cities, including, inter alia, of Sao Paulo.
It is true that the possibility of repealing an ordinance of the participatory budget, like any other, it is also possible and may be adopted, but presumably this has not happened so far, except in exceptional cases is the result of how costly it can be in political terms, to adopt a resolution to abolish the space for citizen participation. Possibly therefore, much more often adopt strategies that in practice do is to restrict and reduce the significance, magnitude and character of the participatory budget, but without deleting it altogether.
There is no record, at least until the present, that an intervention by a higher court or a government regulatory agency or national hierarchy control, have objected to the exercise of participatory budgeting for violating laws above. On the contrary, there are several cases in which citizen participation is explicitly recognized at the highest level, as in several of the constitutions of Latin American countries including, for example, Ecuador, a country in which the Law Municipal Organic Regime expressly provides that any functions of the State or other authorities outside the municipality, repeal, amend or suspend the execution of the ordinances, regulations, resolutions or decisions of local authorities, thereby confirming the degree of legal autonomy Held local governments.
In that respect, it differs clearly the case in Peru. During the government of President Fujimori, the country adopted a policy deeply centralist, with the pretext of eliminating political opposition, in practice settled municipal autonomy, reducing to a minimum skills, and municipal resources.
reaction, when this government term ended in 2003, the Congress discussed and approved a national law that determines that all provincial, district and city in the country should, on a mandatory basis, to make participatory processes for the approval of their institutional budgets .
In practice, this decision has generated several problems, but at least it's still applied. The experience accumulated in various precursors of PB municipalities in Peru (Villa el Salvador, Ilo, among others), the enthusiastic support of many NGOs, the formation of associative networks to advance the process, which are now grouped in the so-called "Red-Peru" and a notable production of texts conceptual, methodological, dissemination and training materials have allowed the country leads in quantitative terms, the exercise of participatory budgeting, more of processes at work in 1500.
is possible that this exceptional case can be replicated in the future in other countries.
In fact, many of the experiences that currently are in operation both in Latin America and in other regions, have been triggered by experiment, in restricted areas with limited resources, involving only part of the municipal powers, only some of its operating units and only certain urban actors. Subsequently extracted and processed the lessons of these early trials, the processes of scale have changed, and thereafter a gradual way over several years, to cover the entire municipal territory, involving the entire population, impact on the whole - or at least a substantial part "of the budgetary resources available and consider all the skills and institutional responsibilities.
There is sufficient evidence to show that in many experiments, the same kind of logic has been implemented progressive growth from the institutional perspective, administrative, operational and judicial-legal.
Regarding the legal framework - legal, Latin America seems to have come to acquire a current prevalence of the practice of law which considers ideas such as those discussed in this text, ie citizen participation, participatory budgeting, accountability on the management of public resources, etc. in the first instance should be experienced in practice so they can become a thought then concrete and executable, which defines a line north or guidance to be followed. For such thinking is built on a consistent and coherent, that stream should therefore articulate in formulating those been studied from the theoretical point of view the subject to be operated, as well as those who have had the opportunity to develop in practice. A thought formed in this way, incorporating academic rigor and wealth of experience not only benefits from the wide range of specific approaches from multiple disciplines, but endorses all the creativity and innovation skills that are born of practice. Established
thus even the direction of thought, at first instance can be transformed into local policy and gradually turn into a state policy. The availability of an innovative public management and the budget participatory, for example, can be assumed as a substantive contribution to the performance of their duties by the authorities and local legislators when they are sufficiently perceptive and possess the political will to bring the structure of the entity in charge, engage in exercise all instances of the institutional and promoting development in the very heart of the community, to ensure the implementation of this policy.
Policies of this kind, developed in a clear, defined, well supported, structured, innovative thinking, inclusive and comprehensive, which have drawn lessons from experiments in turn give rise to legal standards consistent, enforceable and relevant, as part of the process of change and innovation in culture and promote it, rather than against it. The more inclusive than the process of formulating the legal framework, the closer will be successful and appropriate to meet the expectations and demands of the population.
In short, what this raises is that every statute must be born at the end of an inclusive process of experiments and theoretical thought construction and should be incorporated into the social culture, which contributes to reinforcing. Such guidance is especially necessary when it comes, as in this case, a culture that fosters citizen participation in decision making on the administration of public resources. From this perspective, the statute must become the trigger for the cultural, political and institutional needs the whole society for development and, moreover, also is at its most solid foundation and guarantee of permanence, as it brings what is one of the fundamental principles of legal certainty.
For now, most Latin American civic participation in general is raised in a scattered set of rules, some of which are explicitly enshrined in the very constitution of each country, but that was never submitted to systematic and targeted manner, except in exceptional cases such as the aforementioned Law of Participatory Budgeting of the Republic of Peru.
Indeed, in many Latin American Constitutions in force in establishing the political rights of citizens, among which mention the right to elect and be elected, to submit bills to the national legislative bodies, to be consulted; to monitor acts of the organs of political power to revoke the mandate conferred on elected dignitaries, etc. These provisions constitute the underlying constitutional support mechanisms from the perspective of citizen participation legal.
Also, while the constitutional requirements of the countries of the Region have set the exercise of democracy as the right of citizens to vote and run for or be elected to various dignitaries - in some cases conditional on the possibility of the need to be a member or at least have the sponsorship of a recognized political party-until relatively recently, not clarified or alluded to alternative forms of exercise participation, apart from involving the election of officers.
As for local or sectional, is too recent in its legislation in Latin America to incorporate specific rules to determine ways social control and accountability of these entities and authorities.
Even in cases where there are no explicit legal provisions for the establishment of accountability systems, there are municipalities that have issued orders that contain interesting mechanisms to realize these principles, even though within the conventional legal logic, to issue local ordinances, which are legal instruments of regulatory hierarchy, is required prior existence of a general law, which is based on local regulations.
is obvious that those municipalities that have developed participatory processes that involve citizens in making decisions about the use of public resources, are those which have reached more deeply into the search for appropriate mechanisms for accountability. But others, who are the majority, they simply welcome the fact that the absence of an express legal rule, can not issue orders to enable the application of a process of accountability.
international conventions, such as the Inter-American Convention against Corruption, which are signatory countries of the region, or as the UN Convention itself, provide for the obligation of subscribing States to establish, maintain and strengthen mechanisms to encourage participation civil society and NGOs in efforts to prevent corruption.
This is what has been termed social control, namely the incorporation of civil society - in the opposite direction to the political society - a supervision and control of public management. In the study "Obligations arising from the ratification of the Inter-American Convention against Corruption: An analysis for implementation by the States - Parties" states that to effectively incorporate the public in the fight against corruption requires, inter alia, mechanisms such as:
- Recognition and proper regulation of the right of citizens to access information inherent in state management.
- Establishment of accountability to the public imposed on public officials, especially those elected.
- Law and civic duty to report acts of administrative corruption on the part of every citizen.
- Legal Institutionalization of intermediate bodies, through which channel the democratic participation of citizens in control of administrative corruption.
- sufficient guarantees of freedom of the media to report facts concerning the management and public control, to make viable the exercise of social control.
In the absence of other laws, local legislators may be based on such considerations to issue local regulations that facilitate the institutionalization of citizen participation in local governance, restoring and deepening practices are not alien to the nature of their duties and allow them to maintain a direct and permanent contact with the public.
In this regard, municipalities have the right conditions and usually incorporate into their daily activities, various procedures for hearing the demands of the community to consult and collect their views on issues that are of interest and to incorporate those views in planning and implementing policies, programs, projects and management of own municipality. But they are still relatively few have established procedures for citizen participation beyond the level advisory and exercise for decision making and social control over the management of the municipal budget.
However, another condition that possess favorable local governments is the extent of their capacity for experimentation and innovation practices, which are derived from the changing and dynamic reality that generally exists in local contexts.
a result, these institutions possess a degree of flexibility much broader than that found in other areas of public sector and therefore can test new procedures, change their own structures and make changes in their legal frameworks, with a view to test and verify, in reality concrete forms of exercising that deepen democracy and the radicalization, legitimizing their own performance in the social context.
In this perspective, beyond that national regulations can be scattered and still contain a number of conceptual shortcomings that limit its practical application, local governments and legislators are better positioned to create the conditions and progress on the road develop legal frameworks consistent and uniform, from the legal viewpoint, processes such as participatory budgeting, through which we can build more democratic societies from the political point of view, more equitable and inclusive, from the point of socially.

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CITIZEN PARTICIPATION IN PUBLIC MANAGEMENT EXECUTIVES

By: Edson Guerrero
Within the process of state reform issues of efficiency, effectiveness, transparency and sustainability have been the subject of reflection and theorization of public institutions and within more clearly in Government Local. The people and their organizations have lost credibility and confidence in their local managers and therefore say "we want to participate in municipal governance to ensure transparency, honesty and quality of investment." Pronouncements about it are favorable international organizations like the World Bank, UNDP, PAHO, WHO, and others, which state that citizens and should not be beneficiaries but subjects or actors in their own development.
For these reasons I intend to point out some facts about public participation, to better empower the concept and role of change in our region. Calling the attention of those mayors who are authoritarian tyrants, liars, defaulted on its commitments and take the opportunity to turn around 360 degrees and look aliarce with grassroots organizations to make a good municipal management.

1) WHAT IS CITIZEN PARTICIPATION?
Francisco Lliset Borrell defines participation as ".... the set of techniques that allow for citizen engagement in the organization or activity of the Public Administration without integrated into the bureaucratic structures (...). That does not become involved, of course, officer, employee nor a benevolent or interested. The acts involved as a citizen, concerned about the general interest and not as direct and personal interest, the content of its action is not economic, but political. "
The participating employee does not become public and his attitude should not be construed as a favor to society and it is the duty and right of citizens taking part in public policy decisions beyond the simple act of voting in elections periodicals.
The economic situation of our peoples and the need to develop ways to make participation is in the drive mechanism of economic and social development. Thus, participation is seen as a process through which individuals and community are actively involved in all stages of development, creating greater equity and sustainability.
From forgoing define participation as "... a gradual process by which integrates the citizen individually or collectively, in decision-making, monitoring, control and execution of actions in public and private matters that affect political, economic, social and environmental fields to allow full development as human beings and the community in which it operates. "
Under this conceptual ideas, things change, the mayors and managers of other public sectors under the guise of public participation using organizations and their members for personal gain or out, but the scientific guidance of participation is that the population as agent of development, which is responsible for the success or failure in your area. That is a binding participation and not speculative, to assume responsibilities implied, which is active throughout the management process. An organized and effective participation quickly kills the old paradigms of management: Authoritarianism, cuadillistas, personal enrichment, etc.. why people say "DOWN THE MAYORS authoritarian" REVOCATION TO MAYORS Inefficiency, INEFICASES, opaque ... " ETC.

2) HOW MANY WAYS TO CITIZEN PARTICIPATION THERE?.
Prats Catalá, distinguishes between three forms of participation Citizen:

a) Participation: claim.
are movements of citizens to claim rights. Protected by various conventions for the protection of human rights in the constitutions of most states. For example, the organization of the disabled demanded equal opportunities, women's organizations greater equity in local development organizations of gay marriage rights, youth organizing more work, women are better milk glass quality and distribution of products, businesses promote local industries, etc.. are mechanisms of institutional demand.

b) participation: control. Association
taxpayers, neighbors, users, consumers, etc.., Demanding a better control of public spending by the Administration. Control
which legally formalized through legislation information, complaint, petition, consumer protection, regulation of plebiscites and referendums, public hearings, etc.

c) Participation: management. It embodies a genuine
substitute or submerged Administration, before the crisis of the welfare state (day care, welfare, sports and cultural activities, maintained by voluntary associations). The citizen through their organizations and do not want to be a guest idle, passive and melancholic role requires an actor of social and economic development of their locality, demands to be part of the planning, implementation, monitoring and evaluation of local management.

This is the modern and binding participation, proactive involvement and commitment to their welfare, this way we develop in this five year period, but we need to improve our capabilities for active action rather poor become agents of development. In this form of participation is what gives a higher concentration above mentioned international organizations and can be expressed in communal levels, municipal and national levels, either individually or collectively, through which it aims to:

1) Proximity and presence of citizens in decision-making levels
2) Establishment of mechanisms of social control.
3) Establishment and strengthening of instruments for achieving participatory democracy.
4) Municipal strengthening.
5) Decentralization and / or devolution of government to achieve social justice and equity.
6) Respect for organizational and social diversity.

There are other forms of civic participation among which we highlight: passive and active forms. The first is characterized by the population is only recipient of information and based on that issue their opinions, without this having an effect and binding decisions. While the second type of participation, citizens participate directly in the organization or government activity. Such participation can be expressed individually (right to request information or opt for public office, for example) and collectively (interest groups, labor, political parties, etc..).

3. BENEFITS FOR THE PUBLIC
a) Government programs directly affect the lives of citizens and institutions and traditional processes are not always are able to identify and resolve problems that groups of citizens perceive as serious.
b) Develop the capacity of the responsible and broad participation of the citizenry.
c) citizens can make valuable contributions to the planning and execution on the basis of their detailed knowledge of the conditions, needs and local desires.
d) In the latter respect, the participation of citizens in developing skills for public administration.
e) also contributes to depolarization of the company policy to establish common goals.

Citizen participation in governance will ensure the quality management: efficiency, effectiveness, sustainability, transparency, fairness, proper accountability and above all economic and social development.

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NUCLEI

By: Edson Guerrero

The failure in public spending has been a common historical feature in our state is inefficient and the heritage they have received the Local Governments. No need to justify why such barriers to development and poverty reduction, but if shared search for solutions in which all the government take responsibility of its capabilities. Not washing hands and desperate search for solutions as populist presidential speech. Efficiency in the state goes through effective reforms by agreements to implement them and change attitudes of the authorities and citizens.
The record of implementation units, show experiences that might be interesting in terms of increased community participation in identification, prioritization and implementation of local investment projects. But I think that the form and the scenario that created these forms of management were due to a pragmatic need to simplify bureaucratic procedures that are part of the public procedures for the execution of works, and a direct relationship between the Central Government (the authoritarian power then) with peasant communities, scattered, disorganized as part of a disrupted social fabric and affected by the civil war at the time), with no plans to organize and prioritize development projects and subject to a series of unequal power relations with the apparatus of FONCODES, the innumerable cases of manipulation, cronyism , existing taxation and corruption.
Unlike traditional executing unit this renewed form of joint management between the Municipality and Community closer to the new relationship between government and society in the local area has been promoted under the ongoing decentralization process. These are some of the benefits summary of implementation units:
The Executive Nucleus Joint is a major breakthrough, as it allows the joint effort between the municipalities and communities. This allows municipalities to contribute to the works (the joint effort between community and municipality).
With Joint Executive Groups avoids manipulation often occurs in the community Executive Groups, where representatives of the community can be handled by inspectors and resident engineers.
The Executive has approved through an emergency decree, the formation and functioning of implementation units to develop works worth up to 100 tax units (S/.355 thousand) in the three levels of government: central, regional and municipal.
The execution units are temporary and have legal capacity to perform administrative actions and proceedings relating to the works, governed by the rules of the Private Sector.
In viewing the community is a core executor shall consist of at least 100 people and there will be a president, a treasurer, a vocal and a prosecutor to be appointed by the level of government to finance the work, which act to assignor entities, are credited with the regional government, municipal or social program. These
to see presented a project to build, for example, sheds, storage facilities, small pools, mini-dams, nurseries, soil conservation, classrooms, clinics, sanitation and water, and maintenance, repair or opening of cart tracks, etc.. The executing unit of human settlement in the city chooses retaining walls, stairs, school classrooms, repair of health centers, a sanitation work, etc. A native community can choose piers, road repairs, police stations, etc. The juvenile execution cores can take care of sidewalks, slabs sports, forums and other works. Similarly, the peasant patrols on land issues, roads and security.

believe that it is necessary to strengthen the capacities of social partners.

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Civic Engagement at the municipal level

By: Edson Guerrero

Form and extent of civil society participation in governance at the municipal level
Citizen participation can be individual or organized. The civil society organizations have several ways to participate (Article 122 of the LOM), based on wider access to information, including the following:
- Right choice for municipal office.

- Initiative in the formation of local devices.

- The right of referendum.

- Right to report violations and to be informed.

- Cabildo abierto under ordinances governing it.

- participation through neighborhood councils, neighborhood committees, neighborhood associations, community organizations, social or other similar nature neighborhood.

- Management Committees.
But it also is seen as part of the rights of local control of municipal authorities to revoke and demand accountability (Article 121) and the recall of (122).
As part of the decentralization process has been strengthened citizen involvement in the areas of participation and consultation as the Local Coordinating Councils (CCL), which basically should offer development plans concerted and participatory budgeting in local committees or management committees. But in many municipalities, by agreement between civil society and municipal authorities have opted porseguir respecting the validity of the modalities of participation prior to the enactment of the current Organic Law of Municipalities. In many municipalities, believes that the consensus built through participatory processes have a binding nature for both the authorities and social organizations.

Citizen participation and social groups
While there is increasing awareness of the right and at the same time, the duty to take part in practice predominantly voluntary and participants are still a minority of the whole population. Participation can be individual or through social organizations. The latter, according to the rules established by municipalities, accredited representatives to the CCLS or concerted planning processes, participatory budgeting and management committees on various topics such as promoting local economies, tourism, education, health, among others. Logically, involved comparatively social segments that need government support, including organizations linked to the glass of milk and food programs requiring parents to give their children better schools, small producers and traders, young people who manage sports facilities, organizations that manage the provision of basic services. An aspect to point out is that the long history of welfarism and paternalism has determined, even in poor areas, the practice of requesting or requiring access to public goods or services without express willingness to support community development.
However, participation suffers from various difficulties. Indeed, participatory budgeting processes, for example, there is still a limited participation related to the absence of representative institutions, lack of credibility in the participatory process, poor dissemination of the process, or lack of practice and experience to negotiate or waive interest or zonal particular benefits for the poorest sectors of the population. Less involved representatives from remote communities to district or provincial capitals. Also exists a certain loss of public confidence in the processes of consultation, when its resource requirements for projects can not be served. Yet to be seen participating agents prioritize actions of the organizations they represent, do not always coincide with collective aspirations. Special attention must be non-participation of political parties which limits the possibilities for change in political culture. We can say that in all the experiences the participation of women is significantly lower than that of boys, although there is a weak trend to narrow these gaps, but the representation of gender is still very uneven. The participation of young people remains poor or minority in the PP.

The gender
It is making considerable progress in gender mainstreaming. For example, the Equal Opportunities Plan (PIO) 2006-2010, approved by Supreme Decree N ° 009-2005-MIMDES the September 12, 2005. From there he has a commission made up of twelve sectors multisectoral MIMDES, PCM, Health, Education, Justice, Labor and Employment, Agriculture, Interior, Finance, Transport and Communications and the INEI. This instance is its function to monitor the National Plan for Equal Opportunities between Women and Men 2006-2010.
This has allowed equal opportunities to institutionalize gender-equitable public policies, plans and practices of the state. But as states "from words to action, is a long way", although there are encouraging developments. Thus we have the regions of Loreto, Ayacucho and Apurimac, have a Project Regional Ordinance for the integration of PIO 2006-2010. The regions of La Libertad, Junín, Pasco and Apurimac, have regional order approving the PIO.
The operation of social programs is an emphasis on quality of services, equal opportunities based on gender equality and strengthening regional and local economy becoming a space for coordination between state and civil society, especially among groups of women organized, so often excluded from public spaces making decisions and to take special importance in the process of decentralization. Some local governments are including policy guidelines with equal opportunities and gender equity.
Currently, some municipalities have women's offices, social programs for women, DEMUNAS for the prevention and treatment of domestic and sexual violence. It must be stressed that participatory processes are designing and building participatory budgets with a gender perspective. Also in the planning processes are developed Equal Opportunity Plans locally. Have formulated policies on social development and equal opportunity within its competence, in line with the national government's general policy, sectoral plans and programs for local governments.
As we have seen, the gender perspective is part of the local agenda and not only part of the speech but it also has been implemented on a cross in some municipalities.
On the other hand, Article 84 of the LOM, designated as the exclusive function of the district municipalities to facilitate participation and consultation in the planning, management and oversight of local programs for local development. In this perspective, the opportunities for citizen participation constitute an opportunity to promote the development of the civil rights of women who develop proposals and decision-making capacity.
The participation of women in politics (Understood also as a quota for women) as well as other activities in recent years has been growing. The highest level of organization and participation is carried out with rapid growth and expansion of so-called functional organizations such as food or glass of milk or soup kitchens that were formed in the decades of 70 and 80 in order to alleviate the acute crisis economic enveloped the entire lower-income households and were becoming an expression of solidarity to tackle poverty and adversity. Then the women
gradually acquired greater participation in decision making, jumping from professional and occupational activities to institutional policy.
PAHO with support from the Ministry of Health, said in a recent study that the participation of women in the Congress for the period 2001-2006 was 23 women against 97 men. With regard to regional governments was 22 men against 3 women (regional presidents) and local authorities (provincial and district mayors) was 62 women compared to 1.745 men. For 2007-2010 do not have any regional president and the mayors have dropped from 73 (8 provincial and 65 district) to 3 provincial borders a number of 60 district. That is, they have lost ground.

young fees and native peoples or indigenous communities
There favorable provisions that promote the participation of youth and indigenous peoples. There is no information about that local governments develop and / or implement specific actions aimed at inclusion, choice and promotion of rural and indigenous communities in its area of \u200b\u200bjurisdiction, although the RM 188-2006-MINEDU, incorporates and promotes the use of inclusive language in all oral, written, symbolic, technical and regulatory documents and material.

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Local governance development

development projects and reforms for the transformation, always modified gestated by the dynamics of the actors (Giddens, 1984; Clegg, 1990). The costs and benefits of economic reform and social policy can be shared by different agents within institutional frameworks that facilitate participation. Economic reform is the political system reforms, the development of political institutions and government reform. The participation of citizens in governance is one of the objectives of democratic governance processes. For partnership and participation as a democratic instrument purchase value must be accompanied by freedom of expression.

Organizational Flexibility is manifested in the lowering of production and storage systems together with the perspective of transaction costs enable organizations to become more flexible through vertical and horizontal disintegration. The friction of distance is increased in importance by providing a strong incentive for geographic agglomerations (Appelbaum and Henderson, 1995) This flexibility is expressed in structures that facilitate the inter-networks that have developed in different spatial levels: local, national, regional and global levels, giving rise to the emergence of a networking society supported by information technology. The training and integration Network system of direct participation in local governance can Reinventing geopolitical space and give local governments the skills required to meet the challenges of globalization. It

more talk of transforming the nation-state functions that his imminent removal. However, transformations and mutations of the nation state are not always following the same direction. It is no longer the nation-state modeled as an actor that has coherence and its own destiny within a hierarchy of international power and as a result of a rationality of interests. The political space and the nation-state depends not identified exercise of sovereignty over a territory delimited. The territory is being redefined to focus more on local governance under a new local territorial structure.

What the reform of the state is doing is transferring responsibility for managing and resolving social conflicts to local governments, which is conditional on the local social structure. The instrument of government reform and modernization policy is the decentralization of political power from the central authorities to local bodies. For state reform will focus on a redefinition of relations between society, the market and state, decentralization requires para lograr una gestión pública más eficiente.

La construcción territorial del espacio de las decisiones públicas de abajo hacia arriba, que privilegia con una mayor autonomía al gobierno local, debe considerar la corresponsabilidad de competencias en la gestión pública. El desarrollo local es un proceso orientado por estrategias y políticas que articula esfuerzos y recursos de agentes económicos y actores políticos con capacidad de acción territorial para lograr objetivos de crecimiento económico, desarrollo social y mayores niveles de bienestar de la población. Son actores y agentes todos los que toman decisiones que afectan al territorio (Marsiglia y Pintos, 2001). Por lo tanto, no existe a unique model of local development but other proposed projects.

Actors are people and institutions that develop direct action in a territory, as well as the "structures, organizations and people that the task or action have a place and a role in the workings of local exchanges (Cachon, 1996 .) Taking into consideration that the local term is associated both with defined physical territory, as a group moving in a mobile, go Helmerick (2001) defines a town or a localized system as a set of interacting elements dynamic, located within the boundaries of a particular physical space, organized according to an end. "A redefinition of the territory is the basis for the new geopolitical space required by the new local governance to involve different actors and stakeholders in promoting the development of society.

These elements refers to people who usually live and economic units established in the territory. Marsiglia and Pinto (2001) conceptualized the local area / regional as "an economic dimension, a dimension and historical identity, a community of interests and as space with a local potential to enhance development. Reinventing local government geopolitical space implies a new territorial structure in which the municipal governance is manifested as the setting in which different actors and agents interact in joint collaborative projects to solve their own problemas.LA creation of a democratic system in the field of local government and municipal allow the close involvement of citizens in governance issues and is designed to build community identity. Reinventing local government policy is expressed in spatial strengthening the powers of the municipality's development. The three most important relationships in the reform of state regulation are those those between private operators and government relations monitoring and oversight that exist between politicians and bureaucrats and the relations of responsibility and accountability (accountability) that occur between citizens and politicians.

Evidence suggests that the positive connection between growth and incomes of the poor have not changed much during the period of globalization, as above. The analysis of poverty and inequality variables to social spending in Latin America, show a negative correlation and a low efficiency of public administration in the social area over the past two decades, since priority has been given macroeconomic balance.

This public management, said of Molina (2001) should rest on five variables that explores the challenges following a citizen participation and decentralization, effective citizenship, local economic development, territorial management, information society and development sustainable. However, this social spending in Latin America rose almost 25% during the decade, but the returns on investment are very low, due to various factors such as corruption.

Local government is increasingly involved in a strong and persistent attachment to the concept of self-sufficiency and autonomy. The local government has been relegated to a decentralization policy that limits the government reform and to be executors of policies and decisions made at other levels of central Florida. The reconstruction that privileges the territorial local government in the independent determination of areas of public decision from the bottom up, has to promote stewardship of public management skills at different levels of government and agreement of joint development projects between public and private sectors. This among most of the leaders of the groups represented on the boards (Leach et al, 1994), although not all decisions can be decentralized to the local power bodies.

political participation of citizens in local government should not be limited exclusively to the election of representatives. Can assume responsibility for the institutionalization of social policy and public services that are less centralized. Can participate in local governance decisions, such as public spending and investment, as well as fundraising and revenue budget.

To overcome some of these problems, a new territorialization is desirable in order that by forming partnerships to pool resources and efforts of several municipalities are drawn up specific proposals for development through the creation of support tools for municipal management according to regional development. Local governance requires a delimitation of the territorial structure to take advantage of the negotiations and strategies of the association.

These new forms of association of municipalities for the production and delivery of public services, cut across the political divide itself in having joint solutions to similar problems more effectively and by creating economies of scale, given the space constraints of capabilities and resources. Municipalities guide its economic development depending on market strategies, so that the satisfaction of the requirements and demands of economic agents aims to increase competitiveness.

administrative decentralization in the administrative management of regional policy decisions involving adoption at local levels lower. Local governance requires a new design and a new territorial structure reengineering to take advantage of local social participation. Participation in the administration extends to political and social organizations.

Citizen participation in the decentralization process policy are very limited. Political decentralization allows local governments to encourage citizen participation for better redistributive, more equitable, more differentiation and efficiency in the provision of public goods and services. Citizen participation should be encouraged by local governments in governance processes, such as budgetary decisions on expenditures and revenues, especially in decisions that affect the efficient use of their own resources and the provision of public goods and services .

A successful decentralization policy must create structures of regional self-government while allowing the development of social actors able to self-administer and develop an identity, which implies the need to "build" the region in social terms (Boisier, 1987: 143; Schönwälder, 1997:763). The lack of flexibility of the nation state to react to rapid changes in economic globalization and the inertia of heavy structures that do not meet the current demands of citizenship is necessary to strengthen the regions.

The region is generally defined as "an area of \u200b\u200bland on which it can identify a distinct unit of human problems and physical characteristics with a strong tendency towards such unification. Is, with the predominance certain common as well as additional factors that create a kind of identity "following Boisier (1988). A new delimitation of territorial local government is a requirement to promote public management aimed at achieving social participation of key actors and agents in the direct solution of their problems.

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By: Edson Guerrero

Public function in a globalized world in which we live requires that one way or another are involved in the work to develop the good of modern society to a better quality of the professional roles of middle management levels and above, so that society be more satisfied with programs that will provide transparency and accountability that citizens demand, become a better quality of life of society, with better services of all kinds by governments of the Republic of Peru, its regional and municipal governments.
The problems within the entire government is very varied, but this time we will discuss the problems facing public administration.
The importance of one of the problems of governance, a change in attitude of public servants apathetic, indifferent, and too bureaucratic to propositional and attentive servers that have the possibility of that change, with a lot of training especially in the reception and care to people who are requesting a service.
Many projects are truncated because the public servant does not have the attention and good treatment that they must do, since to do so are feeling a salary and that service must be of good quality, which is why it is of vital importance change of attitude at the reception and the first meeting with our clients, which should be optimal, so that the whole process is giving solutions to various obstacles on the progress of governance as they occur and this process is reached a good service agency, in which requires a government that is committed to achieving a better quality of life of society.
This concept based on the new public management, especially in the new proposed reforms intended to replace the bureaucratic management that has caused so many problems all governments largely underdeveloped.
NPM suggests that to rebuild a new consensus around what public relations is necessary to reconsider the state provides to citizens.
The new public management has brought a new view of the user of public servants. Customer
notion circulated by reformers, implies a radical change in the public.
Changing user concept of customer service means making the public in public service, where every citizen can pass on their own vision on the benefit received, their utility and their preferences.
The best services and most honest administration may not achieve acceptance and legitimacy to which they aspire, if it is unable to meet the decisions of citizens.
Today we must be aware that in order to develop the project of a quality public administration, where you change the new concept of client of these services by the concept outdated and bureaucratic services public.
A modern administration, intended to be active citizens of the projects and to participate and collaborate with staff to feel part of his government, of course with appropriate channels for citizen participation.
demand of the population mainly in the municipalities, should be a focus of staff in an accessible, modern and efficient and that all this work contribute result in increased overall productivity of the economy and a democratic process requirement of living Peru.
why the public modernization seeks a transformation, which also involves changes in regulations and procedures to change attitudes and behavior throughout the public sector.
Finally, we need to be just an honest job, tenacious, persevering and showing a strong will to serve the people, determined to solve the most sense of citizenship.

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NPM Local initiatives and increased productivity in times of crisis

By: Antonio Vazquez Barquero

But it is in the area of \u200b\u200bthe instruments of development in which local initiatives contribute significantly to the search for a path that leads to ending the crisis.
Its strength is that many of the instruments used stimulate the production of increasing returns on investment, helping to increase productivity (Vázquez Barquero, 2007).

i) Encourage the creation and development of enterprises and clusters

The creation and enterprise development is a prerequisite in the development process, as companies transform savings into investment through business ventures; well, when stimulated the development of networks and clusters of companies, promotes the emergence of external economies of scale and reducing transaction costs.

ii) Diffusion of innovations
Another of the main axes of the local development policy is the diffusion of innovation and knowledge in local production, allowing the introduction of new products and differentiation of existing changes in production processes, opening new markets.
All this contributes to increased productivity and competitiveness of enterprises.

iii) Qualification of human resources
If there is a specific objective of local development policy, that is the training of human resources, and through them that knowledge is incorporated in the production of goods and services and the manage their own development strategy. When the training activities are inserted into the development strategy, improving the quality of human resources conducive to increased productivity, enhance competitiveness, and even affects the cultural model that supports the development process.

iv) Construction of urban facilities and infrastructure
The construction and improvement of social overhead capital and infrastructure is one of the most widely used instruments in local development policies. Companies prefer locations in places accessible and well equipped with facilities to enable them to exploit economies of agglomeration and access to product and factor markets. But also the improvement of infrastructure attracts industrial activities and services to the towns and rural areas, generating economies of scope and promotes increased productivity.

v) Maintenance and improvement of environment and cultural heritage
Sustainable development is without doubt one of the strategic objectives of local development and the protection and development of ecological systems and natural resources and continuous improvement of historical and cultural heritage, not only have a positive impact on environmental systems but also make the territories and cities attractive places for producing and living, and contribute to improving the welfare of the population.

Finally, sustainable development is visible in initiatives that aim to promote conservation historical and cultural heritage, through the recovery of historic centers, as in the case of Old Havana and Cartagena de Indias, but also with initiatives aimed at transforming degraded areas by giving them a new functionality within the city as it happens Puerto Madero, Buenos Aires, where he transformed the old port in an urban area that contains educational activities, business services, and leisure.
territorial output
crisis advanced and emerging countries are going through a process of major productive and social changes, because the financial crisis has made the banking system ceases to be a dynamic factor production system. The scope of the situation is, at present, unknown, since the lack of liquidity and insolvency of banks prevent credit flows in the productive system and the companies generate the profits needed to sustain the activity, so that produces the continued closure of establishments and job losses.

article argues that to overcome the crisis it is necessary that the government undertake policies that combine measures to restore confidence in financial institutions as banks once again become the instruments that facilitate productive activity, on the one hand, with initiatives to increase productivity and competitiveness, another.
In this sense, the article argues that local development policy is a land out of economic crisis. Its strengths are that it is a strategy that focuses on productive restructuring and adjustment as an issue to be resolved in the territory, allowing you to give specific solutions to specific problems of each locality and region, using precisely the development potential existing in each territory and is not used because of the crisis.
Its merit lies in having used a strategy that encourages increasing returns on investment, and therefore promotes increased productivity and competitiveness of economies.
But local development is a strategy that also seeks social progress and sustainable development. Understand that development is a process in which economic growth and income distribution are two sides of the same phenomenon, since the public and private actors, when deciding and implementing their investment, do so with the aim of increasing productivity and improve the welfare of society. Local development is also a strategy based on continuous improvement of available resources, particularly natural resources and historical and cultural heritage, as this contributes to increase the competitive advantage of the territory and the welfare of population.
Finally, should not forget that local development is a strategy whose results are not guaranteed. This is a development policy that seeks to create wealth and employment by encouraging the emergence and development of enterprises, so that excess foreign aid reduces the creative capacity of local actors and the population, and therefore, limits the results of initiatives. Furthermore, it is a policy whose effect is conditioned by the coordination in the territory of the shares, so it loses effectiveness when the actions are implemented in isolation, and limiting the effects of the interaction between the forces of development. Finally, a policy participatory civil society, in which local actors are those who design and monitor their implementation, so their results are affected when, unilaterally imposed, locally or from abroad, actions or goals condition strategy.

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local development, a strategy for times of crisis

By: Antonio Vazquez Barquero

For over thirty years, at the same time intensified the process of global economic integration, have emerged and have had multiple experiences in local development poor and late development (Aghon et al. 2001; Scott and Garofoli, 2007; Vázquez Barquero, 2007 and 2005).
In order to reduce poverty, create jobs and promote economic and social progress, local actors promoted initiatives in response to the towns and territories to the challenges posed by the production adjustment and increased competition in domestic and international markets.
But the economic, political and institutional, in which local initiatives have emerged, has changed since mid-2007 as the advanced economies and emerging economies have been affected by the crisis in the financial system, which is blocking the operation of the real economy. Have significantly reduced growth rates, has reduced the productive activity reduces the domestic and external demand, growing unemployment rates, and increases poverty in the poorest areas. In this scenario, the public and private decision-makers consider how to approach the solution of economic and social problems that have raised the country.
What kind of actions and policies are most effective in times of crisis like the present? Is it enough to launch rescue operations or financial institutions is also necessary to intervene with actions that foster productivity and competitiveness of firms? What is the contribution to local development policy can provide the development of areas affected by the crisis? Are the tools developed for local development policy useful in times of crisis like the present?
local development and the start of the crisis
local development initiatives in poor countries emerged and developed later, in order to neutralize the negative effects of globalization and the production adjustment occurred in the living standards of the population through job creation and economic and social progress.

a. The search for the solution to the crisis in the territory

Although local development strategy and structural policies share the same objectives, approach treatment differently the problems of the crisis.
While structural policies take a functional approach, local development policies define their actions in a territorial approach. To act on the productive system, it should be done taking into account that development initiatives are carried out in areas characterized by a social system, cultural institutions and with which they interact. Therefore, measures are most effective when they use local resources and are linked to investment decisions by local actors.
Two issues determine the outcome of the shares, the existing development potential in each territory and organizational capacities of local actors.
From this perspective, all localities and territories have a set of resources, which constitute its development potential, both for rural areas, as Cuchumatanes, in Guatemala, as in the case of dynamic cities like Rosario, Argentina. At each town, country or territory is detected, for example, the provision of a particular production structure, labor market, skills, entrepreneurship, natural resources, social and political structure, or tradition and culture, on which necessarily articulate local initiatives.
On the other hand, the development of a locality or territory requires public and private actors implement their investment programs in a coordinated manner. In Latin America the endogenous development policy is based on initiatives in the economic and social projects are coordinated and managed through new forms of governance involving public and private actors, international organizations and nongovernmental organizations ( Costamagna, 1999). In Villa El Salvador established the Autonomous Authority Industrial Park Southern Cone, which brings together public and private actors in order to create and develop the Industrial Park. In Jalisco, Mexico, local businessmen, including executives of multinational corporations, together with public, involved in the creation of local supplier networks.
Finally, the local development strategy should be raised specifically in each case, as the needs and demands of different localities and territories, the capacity of residents, businesses and local community change, and in addition, each community visualized different priorities should incorporate development policies. Territorial strategic planning has become therefore a valuable tool to streamline decision making and management in cities and regions, with many examples such as Rosario and Cordoba in Argentina, or in cities and regions of Morocco Tunisia and Libya, where he created the Local Economic Development Agencies, animated by the UNDP and ILO on the basis of strategic plans (Canzanelli, 2003).

b. Innovation, strategic factor in the production adjustment

The approach of the crisis as an opportunity to transform the productive system, so that is stronger and more competitive at international level is a central issue at the start of the crisis. The key element is the introduction and dissemination of innovations in the productive, social and institutional, as it is the most effective way to ensure the long term, increased productivity and competitiveness, and therefore, economic and social progress.
local development policies facing the question of adjustment and restructuring of production systems based on the competitiveness of firms in product markets and factor. The income growth and strong demand changes have led to the diversification of production in both cities and in rural areas. The development of tourism in the cities of Cartagena de Indias and Havana Vieja, but also the strength of cultural tourism in Chiapas and the Yucatan peninsula, show how changes in international demand stimulate the diversification of production and raise the need continually introducing innovations that strengthen competitiveness.
With increasing economic integration, the companies develop their competitive advantages in local and international markets. Thus, production systems are always evolving and often, the revitalization of the changes made from the renewal of traditional know-how with the introduction of new knowledge during the process of structural change. In the case of Cuchumatanes, for example, continued to perform activities of sheep production, production of coffee and horticultural produce goods, but technological improvements could differentiate production and strengthen their business systems.
In other localities and territories, the issue does not lie in the differentiation of production or reduced costs and in finding new products for markets in which local firms can maintain their competitive advantage. This is the case of Tapachula, in Mexico, for example, where coffee producers had to react to the strong competition from producers in Vietnam in the international markets, which could not compete on price. The answer was to change the productive activity and engage in the production of tropical flowers to markets like the U.S., so they had to adopt new technologies production from outside, penetrate new markets and adapt their knowledge to the new realities of production and trade. Companies and territories
point also to the production of new goods and services whose demand is increasing in the markets, as well as products that incorporate high technology and for which there is strong domestic and external demand, as with the cluster electronics in Jalisco, Mexico. For this transformation to take shape in production systems, it is necessary to improve the quality of human resources and introduce new product innovations and in the productive process.