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LATIN AMERICA
In recent decades, there have been significant improvements in both the coverage and quality of basic services in Latin America. The region already meets, or is predicted to meet, the Millennium Development Goals for water and sanitation. However, there are still hurdles to be overcome to ensure access to quality basic services for all. This report presents an overview of the role of local government in providing basic services in seventeen countries in Latin America. Economic growth in Latin America over the last decade, along with redistributive policies in several countries, has led to a relative decline in poverty in the region. However, major economic and social inequalities still exist: a third of the region’s population still lives in poverty and 13% in extreme poverty. Although Latin America is one of the most urbanized continents (80% of the population lives in cities), Latin American cities, especially its metropolises, are still experiencing intense urban expansion that is very difficult to manage. It is estimated that urban areas will gain a further 90 million inhabitants between now and 2020. Cities reflect the social heterogeneity that characterizes the region. About 30% of the urban Âpopulation (138 million people) lives
in slums. Marginalized neighborhoods and informal settlements exist alongside exclusive residential areas and gated communities. This feature of the region has significant implications for the governance of basic services. Stark contrasts in service access and quality are observed across the region. As described in the previous GOLD Reports (2008 and 2010), the democratization that began in Latin America in the 1980s was accompanied by significant decentralization. Despite the strong centralism that characterizes Latin American states, decentralization processes have transformed the institutional relationship between central and sub-national governments. Although there are still serious disparities between countries, local governments have gradually acquired greater responsibility for the provision of services, as well as the financial and professional capabilities necessary to meet these responsibilities. Institutional framework The legislation in most countries allocates the responsibility for the basic services to local governments. Latin American municipalities often share the running of these public services with intermediate and national levels of government, with each level