Vol. 6 No. 10 (2008): Latin American Journal of Economic Development No. 10

Latin American Journal of Economic Development No. 10

The ideas of decentralization were born in the theoretical and conceptual advances that were developed in the process of construction of the European Union. The transfer of these ideas to other geographical areas and other political and social realities was due, to a large extent, to the disenchantment of the population regarding the efficiency of public sector functions, especially in those countries where centralism characterized its economic structure. These conditions allowed the progress of privatization and decentralization processes in the last two decades of the last century, in the search for a smaller and more efficient public sector. On the other hand, faced with macroeconomic imbalances suffered by several economies and ethnic conflicts, the decentralization process appeared as a possible solution. Such is the case of those countries that recovered democracy based on broad agreements that not only included different political parties but also different regions and ethnic groups.

Published: 2008-08-01