Political Power, Fiscal Crises, and Decentralization in Latin America: Federal Countries in Comparative Perspective (and some Contrasts with Unitary Cases)

What factors shape decentralization processes in Latin Americanfederations? This work reviews and statistically analyzes currentapproaches on the topic, questions some claims of generalityin their theoretical frameworks, and presents an argument toexplain variation in decentralization processes across thesefederations. The main hypothesis is that the degree of decentralization(in fiscal and administrative terms) in Latin American federationshas been shaped by the political power of the national executiveand sub-national actors and the fiscal context in which theyinteract. The article presents statistical evidence (for federaland unitary countries between 1979 and 1998) to sustain someof the expectations in the argument and discusses some of itslimitations.