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Subnational government finances and capabilities for regional economic development in Uruguay: 1990-2016

Leonel Muinelo-Gallo () and Adrián Rodríguez Miranda

No 19-15, Documentos de Trabajo (working papers) from Instituto de Economia - IECON

Abstract: The purpose of this work is to reflect on the relationship between subnational finance and the capabilities for regional economic development in Uruguay. It presents rigorous evidence of recent work on the relationships between fiscal decentralization, intergovernmental transfers and regional disparities in Uruguay. This is analyzed together with new available information on the evolution of subnational finances and a critical analysis of the productive policies developed in the country. It seeks to contribute to the current debate on the relationships between territorial development, decentralization and the role of public policy to reduce regional disparities. In this regard, it is concluded that these challenges require a better financing scheme for local development, with greater management capacity for decision-making at the local level. For this, as a prerequisite, it is urgent to improve the technical and management capacities of subnational governments.

Keywords: descentralization; regional development; local development; bubnational finance; subnational governments; productive policies; Uruguay (search for similar items in EconPapers)
JEL-codes: H70 H77 R11 R51 R58 (search for similar items in EconPapers)
Pages: 47 pages
Date: 2019-07
New Economics Papers: this item is included in nep-lam and nep-ure
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