Fiscal Decentralization: Explaining Successful Local Economic Development in Latin America

Resumen. En el presente trabajo se pretende exponer cómo el enfoque del Desarrollo Territorial debe ser parte de las acciones globales por un mundo más justo, sostenible y solidario. Por ello he tratado de vincular en este texto las argumentaciones críticas y los movimientos sociales surgidos contra la crisis financiera, económica y social en los países desarrollados, con los movimientos sociales y socio-ambientales que se han levantado en América Latina y en otras partes del mundo en estas últimas décadas. A partir de una amplia y profunda reflexión teórica, derivada de la experiencia profesional adquirida en la promoción de iniciativas de Desarrollo Económico Local, tanto desde el punto de vista teórico (al desempeñar labores de docencia y asesoría a múltiples administraciones públicas) como práctico (a través de la investigación-acción), se desarrolla una sintética explicación sobre el paradigma de desarrollo predominante y la crisis climática actual, recogiendo las proyección sobre el calentamiento global que dicho paradigma supone, para avanzar en la necesidad de cuestionar el libre comercio internacional. A partir de esta exposición, y tomando como caso el ejemplo de América Latina y El Caribe, se apunta cómo opera el “nuevo” modelo extractivo exportador y la acumulación por desposesión de bienes comunes (salud, educación, vivienda, necesidades básicas) y bienes comunes naturales (acceso al agua, medioambiente, biodiversidad, calidad de vida), para finalizar apostando por la construcción de un paradigma de desarrollo alternativo a través de acciones concretas, presentadas como futuras líneas de acción pública, privada y social. Palabras clave: América latina, desarrollo económico local, calentamiento global, libre comercio internacional, bienes comunes. Abstract. This paper aims to explain how the approach to territorial development should be part of global actions for a fairer, more sustainable and more united world. Therefore, I have tried to link in this text the critical arguments and social movements that have emerged against the financial, economic and social crisis in developed countries, with the social and socio-environmental movements that have arisen in Latin America and other parts of the world in recent decades. From a wide and deep theoretical reflection, derived from the professional experience acquired in the promotion of Local Economic Development initiatives, both from the theoretical point of view (when carrying out teaching and advising tasks to multiple public administrations) and practical (through research-action), a synthetic explanation is developed on the predominant development paradigm and the current climate crisis, gathering the projections on global warming that such paradigm implies, in order to advance in the need to question international free trade. Based on this presentation, and taking the example of Latin America and the Caribbean as a starting point, it points out how the "new" extractive export model operates and the accumulation by dispossession of common goods (health, education, housing, basic needs) and natural common goods (access to water, environment, biodiversity, quality of life), to finish by betting on the construction of an alternative development paradigm through concrete actions, presented as future lines of public, private and social action. Key words: Latin America, local economic development, global warming, free international trade, common goods.

Download Full-text

FINANCING LOCAL ECONOMIC DEVELOPMENT THROUGH THE FINANCIAL MARKET - SITUATION AND PERSPECTIVES IN REPUBLIC OF NORTH MACEDONIA

Knowledge International Journal ◽

10.35120/kij310189m ◽

2019 ◽

Vol 31 (1) ◽

pp. 89-94

Author(s):

Florije Miftari

Keyword(s):

Economic Development ◽

Local Economic Development ◽

Fiscal Decentralization ◽

Regional Economic Development ◽

Developed Countries ◽

Municipal Bonds ◽

Alternative Source ◽

Regional Economic ◽

Capital Projects ◽

The Republic

The process of reform and fiscal decentralization in the Republic of North Macedonia is already in the second decade of implementation, the legal deadline of which was 2007. However, local government units are still lagging behind in the realization of many of their functions and legal competencies, mainly as a result of lack of financial means, lack of knowledge or lack of capacities to access on alternative sources of funding. An important instrument of financing, especially for financing local and regional economic development are municipal bonds, which are considered the most used financial instruments for financing local and regional capital projects in almost all developed countries of the World, but still in Republic of North Macedonia, no municipality has used this funding source. It is reasonable and necessary that this practice to be developed also in North Macedonia that would result in the realization of strategic municipal projects and at the same time will have an impact on the development of the capital market.Therefore, the purpose of this paper is to analyze the factors, causes and barriers of non-application of municipal bonds in North Macedonia as a financing instrument by the municipalities. Also in this paper are analyzed and evaluated the opportunities and constraints, benefits and risks, criteria and budget constraints of municipal bonds as an additional or alternative source of financial resources for financing local and regional economic development.

Download Full-text