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Second Global Report on Decentralization and Local Democracy. GOLD 2010 EXECUTIVE SUMMARY
necessarily excessive to respond to the needs of citizens. However, there are significant differences in both the sizes and characteristics for these entities, depending on the country and type of territory as well as the municipal human and financial resources. The most effective manner to balance municipal capacity – without reorganizing the territorial and institutional structure in each country – is through municipal associative movements, that is to say, to encourage inter-municipal cooperation. (“Mancomunidades”) allow local governments to mutually support each other, manage services jointly, and undertake local development programs and projects.
Increase the sources of own revenues for local government In Latin America the main sources of municipal income –apart from fees and tariffs for municipal services– are property taxes, business and commercial licenses, vehicle taxes, development charges and transfer systems for equalization purpose to strengthen incomes for less developed municipalities. Property tax is the most common, and is in use across all of Latin America, with some exceptions such as Costa Rica, Dominican Republic, and El Salvador. It is necessary to improve and increase the sources of own revenue for local governments.
Prioritize strengthening and improved functioning of local governments It is very important for the success of the decentralization process that local governments are effectively strengthened, helping them to better exercise their powers and responsibilities and provide good levels of services.
Improve coordination between ministries and national institutions responsible for sectoral policy and local government; the transfer of responsibilities must be accompanied by corresponding resources One of the most common conflicts in public policy is that of aligning the generally sectoral visions of national ministries, with the territorial optic of local governments. Municipalities are often assigned partial responsibilities, from national ministries, without the necessary resources to successfully implement them.
Recognize and strengthen the role of local government associations Local government associations are an important supporting structure for municipal management. The national associations allow for the design and discussion of national policies and regulations on decentralization and local responsibilities, with central government and parliament; the departmental, regional or intermediary municipal associations play a similar role with intermediary governments, and also provide technical support to member governments.
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