SINGULAR TRANSITION TO DECENTRALISED GOVERNANCE

Bolivia's lake titicaca

Bolivia's lake titicaca

3. BOLIVIA
— From 1952 revolution, Bolivia evolved a highly centralized state aimed to create industrial and egalitarian society
— Monopolized by the National Revolutionary Movement, a policy based on import substitution and industrialization had a little scope for local governance and inequality is high.
— Lack of economic progress since late 1970s resulted in social unrest.
— Ethnic based political parties began to challenge the ruling party in its key rural bases.
— Decentralization law was developed in secrecy, and the object of ridicule and opposition throughout the country. But it had a dramatic effect on the pattern of governance and resource allocation. Devolution included fiscal measures (doubled local resources 10-20% of their spending, formula bound transfers)
— Responsibilities for services in education, health, irrigation, roads, sports, and culture are transferred
— Created oversight committees over local governments
— Created large number of municipalities, and expanded the existing.
— Shift of resources to poorer districts and investments more responsive to local needs.
— Shift in public investment from production and infrastructure to social services and human-capital formation.
— Different patterns of local governance observed due to dynamics between– local govt. institutions, civil society, and economic groups.
— Good governance is the outcome when these three interactions counterbalance each other and none dominates the other.

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