Decentralization Reforms in Developing Countries Designed to Champion the Interests of Central Politicians and not Grassroots Development

Decentralization has been considered as a powerful tool for enhancing development. However, after nearly four decades of implementing decentralization in many countries in the Global South, the evidence suggests that the impact of decentralization on development is weak and uninspiring. This article argues that the design of a decentralization program is always critical with regard the extent to which it can promote development. The evidence across the developing countries demonstrates that the motivations behind decentralization are typically not politically neutral, political interests have been the key motivation behind the adoption of various types of decentralization programs in the developing countries. As a result, the faith in decentralization as a technical tool that could propel grassroots development needs to be reconsidered, since political interests and not development are the main determinants of decentralization. This is because, in practice, the decentralization designs in many developing countries tend to limit rather than expand the political, fiscal, and administrative powers of subnational governments, while the center retains control. This severely limits the development potential of subnational governments.

Parties Matter: The Consequences of PRR Parties in Subnational Governments on Health Policy

Although the research surrounding PRR parties has increased over the years, health policies, an important part of the welfare system, have generally been neglected. Using an in-depth case-study approach, this article analyses the health policy consequences of PRR parties in Austrian and Italian subnational governments over time, thereby expanding the units of analysis while also looking at an understudied level of government. The findings indicate a propensity towards neoliberalism, combined with accents of welfare chauvinism in Austria and a strategy of shutting down the Freedom Party of Austria. In the case of Italy, both regional cases mark a desire for welfare chauvinism but an inability to restrict healthcare access directly. In all four cases (except Burgenland), the PRR parties are consistently chauvinistic (despite seeming to prefer welfare to liberal chauvinism, they typically implement the latter for health policies) and any factor of generosity comes from a social democratic coalition partner or not at all.

From Municipalist Activism to Institutional Changes: An Analysis of the Subnational Dimension in Mercosur (1995-2019)

Mercosur has gone through distinct phases, leading to the articulation between a myriad of sectors, groups, and actors, among which subnational governments stand out. Local governments started this movement in 1995, with the foundation of the Mercosur Cities Network. In 2000, the Specialized Meeting of Municipalities and Intendencies (REMI) was created, replaced in the following years by the Mercosur Advisory Forum of Municipalities, States, Provinces, and Departments (FCCR), known for being the channel for subnational representation in the bloc. Drawing on bibliographic and document analysis, in addition to interviews and questionnaires, this article aims to analyze the internationalization and inclusion of subnational actors in Mercosur, mainly focusing on the changes observed over the years within these three institutions. The first section introduces the literature on paradiplomacy and deals specifically with Mercosur, seeking to verify how the regional agenda has been expanded, despite decision-making processes not being decentralized. The second and third sections analyse the origins of subnational integration through Mercocities alongside the development of REMI and FCCR. Considering the historical and institutional specificities of Mercosur, the research concludes by questioning the assumption of International Relations literature that regional blocs are potential arenas for effective internationalization of subnational governments.

Subnational activism and conflicts within Jair Bolsonaro’s government: an analysis of the Brazilian states’ actions in the Sustainable Development Goals (SDG) agenda during 2019

The article analyzes the international engagement of Brazilian subnational governments in the Sustainable Development Goals (SDGs) agenda during the first year of the Bolsonaro’s government with an emphasis on the role of states in supporting the environmental axis. We argue that subnational governments have been strongly active in defending this agenda, unlike the federal government, generating foreign policy tensions. Therefore, the research analyzes the performance of these actors in the scope of the Northeast and the Legal Amazon Consortia.

Mexico–Canada Economic Relations during the NAFTA Era

Canada is Mexico’s third largest trading partner in terms of the overall bilateral trade, and both countries have become strategic allies during the North American Free Trade Agreement (NAFTA) era, between 1994 and 2020. Canada, Mexico, and the United States have been members of the NAFTA since 1994. For both Canada and Mexico, the United States is their first trading partner, in terms of exports, imports, and foreign direct investment. NAFTA has paved the way for economic integration between Canada and Mexico during the period of this agreement. It is significant to highlight the notable expansion of Mexico’s exports to Canada, but also of Canada’s investment in Mexico. From a subnational perspective, the provinces of Ontario, Quebec, British Columbia, and Alberta are among Mexico’s most important trading partners. Economic relations between Mexico and Canada has also facilitated international cooperation from subnational governments and important interchanges in education, science, culture, and environment. Quebec is the only Canadian province with a general delegation in Mexico and representations in several subnational states. The Canadian province of Saskatchewan has established important agreements in education with government agencies and universities in Mexico. Relations between Mexico and Canada have strengthened during the NAFTA era. Not only central governments but also subnational governments define the characteristics and dynamics of this relation.

An Analysis of Optimal Tax Revenue Sharing for Mexico

We develop an analysis that identifies the characteristics of an optimal system of shared tax collection and intergovernmental transfers. Mathematical optimization is used to find the level of taxes and intergovernmental transfers. Formulas for the optimal level of taxes and transfers to subnational governments are characterized. We suggest reforms to intergovernmental transfers to include the costs of tax inefficiency, some tax equalization transfer rules, and the marginal social benefits of local public spending. Future research could include local public spending with regional externalities, migration, and consider a dynamic model. This article proposes an original theoretical model of optimal tax coordination and transfers. The optimal level of taxes and transfers are identified. This paper proposes reforms to the participation formula for subnational governments.

Coordination and crisis management. The case of the federal Government and two sub-national governments in Mexico

The article analyzes how the Mexican subnational governments responded the COVID 19 outbreak during the first stage of the crisis. The response of two subnational governments whose territory is part of the largest metropolitan area in the country that has been the focus of the pandemic is presented. We ask about the coordination instruments to face COVID-19 between the federal policy and programs with the subnational governments and argue that, during the first stage of the management of the COVID-19 crisis the institutional and organizational design of the Mexican political-administrative system has had a relevant impact on the government’s response, as well in the coordination policies. The article demonstrates that in a crisis, coordination instruments do not depend on political parties but consist of a blend of weak and suitable articulation of policies of the subnational governments with the federal strategy, as well as the need to improve the instruments of collaboration between the various levels of government in the context of a healthcare system in transformation.

US subnational cybersecurity risks are rising

Significance These problems also affect subnational governments, which have increasingly come under attack in recent years. They have suffered a string of outages and interruptions to crucial local services ranging from parking payment to real estate purchases. Impacts A private vendor providing security to multiple local government entities will become the single point of failure. Demand for cyber insurance at subnational level will rise, and ransom payments will continue if they are covered by insurers. The federal government will likely make cybersecurity aid to states contingent on tighter security standards.

Subnational Government Capital Financing

This book argues that capital markets can be an important source of financing for subnational governments across the globe as they face decentralization of governance systems and increased demand for infrastructure at the local level. The central argument is that information resolution at both the national-level and the city-level is critical for the success of subnational capital markets. Furthermore, the chapter argues that subnational governments can and must become competent actors with regards to both top-down (national to local governments) and outside-in (financial sector firms to local governments) transactions and pressures. This chapter presents city policymakers with options for capital market access when both system credit contractibility and underlying credit quality vary by offering a typology of alternatives for capital financing. The chapter recommends policies that establish contractibility and credit quality assessment mechanisms and concludes with recommendations for future research.