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 American federations? This work reviews and statistically analyzes current approaches on the topic, questions some claims of generality in their theoretical frameworks, and presents an argument to explain variation in decentralization processes across these federations. The main hypothesis is that the degree of decentralization (in fiscal and administrative terms) in Latin American federations has been shaped by the political power of the national executive and sub-national actors and the fiscal context in which they interact. The article presents statistical evidence (for federal and unitary countries between 1979 and 1998) to sustain some of the expectations in the argument and discusses some of its limitations. Copyright 2008, Oxford University Press.