Intergovernmental relations and decentralization in Chile: the inertia of centralism and functionalism

This chapter delves into Chile’s intergovernmental relations structure. This Latin American country has consistently been recognized as one of the most centralized nations in the region and globally (OECD, 2017a). Unlike other Latin American nations (see the chapters on Colombia, Brazil, Mexico, and Peru in this volume), the Chilean case reflects a notable effort to establish an administrative decentralization model while neglecting key political issues necessary for regional autonomy and self-determination. The chapter begins by describing the politico-administrative, socioeconomic, and financial aspects of the Chilean state, followed by an exploration of federalism and decentralization in the country, the functions of subnational governments, and some political subnational system aspects. Finally, the chapter examines two cases that demonstrate the entrenched centralism and the difficulty of advancing intergovernmental relations (IGR) reforms in Chile, highlighting the country's ongoing challenges in terms of IGR.