The Impact of Political Variables on Budgets and Social Outcomes in a Context of Decentralization: The Case of Colombia

Crisis States Programme Conference Paper 2004

92 Pages Posted: 19 Jul 2005

See all articles by Carolina Mejía Mantilla

Carolina Mejía Mantilla

Fedesarrollo (Colombia)

Fabio Sánchez

Universidad de los Andes, Colombia - Department of Economics

Jean-Paul Faguet

London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP)

Date Written: December 2004

Abstract

We examine the case of decentralization in Colombia in order to explore its effects on poverty indicators, and on public sector responsiveness to real local demands. We first summarize economic data on the effects of decentralization. Colombian municipalities increased investment significantly as decentralization deepened, while running costs fell. Investment shifted from economic production and infrastructure to social services and human capital formation. We then explore the determinants of local public investment via a series of econometric models. Political and electoral variables prove to be decisively important.

Note: Downloadable document is in Spanish.

Keywords: Decentralization, local government, participation, Colombia

JEL Classification: D72, D73, H41, H42, H72, O18

Suggested Citation

Mejía Mantilla, Carolina and Sánchez Torres, Fabio and Faguet, Jean-Paul, The Impact of Political Variables on Budgets and Social Outcomes in a Context of Decentralization: The Case of Colombia (December 2004). Crisis States Programme Conference Paper 2004, Available at SSRN: https://ssrn.com/abstract=759084 or http://dx.doi.org/10.2139/ssrn.759084

Carolina Mejía Mantilla (Contact Author)

Fedesarrollo (Colombia) ( email )

Calle 78 No 9-91
Santafe de Bogota, 75074
Colombia

Fabio Sánchez Torres

Universidad de los Andes, Colombia - Department of Economics ( email )

Carrera 1a No. 18A-10
Santafe de Bogota, AA4976
Colombia
+57 1 332 4495 (Phone)
+57 1 332 4492 (Fax)

Jean-Paul Faguet

London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP) ( email )

Houghton Street
London WC2A 2AE
United Kingdom
+44 207 955 6435 (Phone)
+44 207 955 6844 (Fax)

HOME PAGE: http://www.lse.ac.uk/Depts/destin/faguetjp.html

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