Decentralization in Argentina

58 Pages Posted: 28 Jun 2001

See all articles by Nadir Habibi

Nadir Habibi

Yale University - Yale Center for International and Area Studies

Cindy Huang

Princeton University - Department of Economics

Diego Miranda

Harvard University - Department of Government

Victoria Murillo

Yale University - Department of Political Science

Gustav Ranis

Yale University - Department of Economics (Deceased)

Mainak Sarkar

Yale University - Department of Economics

Frances Stewart

University of Oxford - Department of Economics

Date Written: May 2001

Abstract

Human development, reflected in the status of people's levels of health and education, affects future growth and, in turn, is affected by decentralization. Unlike earlier exclusive emphasis on budgetary issues, this study focuses on the impact of fiscal decentralization on the level of human development. It traces the origin and recent development of revenue-sharing arrangements across Argentina's provinces over time (1970-94). The study regresses two indicators of health and educational status on two decentralization measures. It highlights the link between decentralization and human development outcomes and suggests that devolutionary decentralization has a positive influence on the effectiveness of public policy directed towards an improvement in the level of human development. Decentralization is shown to reduce intra-regional disparities and increase levels of human development. While the paper also recognizes problems associated with decentralization, including addressing inter-regional disparities, the positive impact of decentralization schemes on human development is seen to be of relevance in evaluating the Argentine co-participation regime which is currently under negotiation.

Keywords: Fiscal Decentralization, Human Development, Argentina

JEL Classification: O18

Suggested Citation

Habibi, Nadir and Huang, Cindy and Miranda, Diego and Murillo, Maria Victoria and Ranis, Gustav and Sarkar, Mainak and Stewart, Frances, Decentralization in Argentina (May 2001). Yale Economic Growth Center Discussion Paper No. 825. Available at SSRN: https://ssrn.com/abstract=275291

Nadir Habibi

Yale University - Yale Center for International and Area Studies

P.O. Box 208206
New Haven, CT 06520-8206
United States

Cindy Huang

Princeton University - Department of Economics ( email )

Princeton, NJ 08544-1021
United States

Diego Miranda

Harvard University - Department of Government ( email )

CGIS
Cambridge, MA 02138
United States

Maria Victoria Murillo

Yale University - Department of Political Science ( email )

Box 208269
New Haven, DC 06520-8269
United States

Gustav Ranis (Contact Author)

Yale University - Department of Economics (Deceased)

United States

Mainak Sarkar

Yale University - Department of Economics

28 Hillhouse Ave
New Haven, CT 06520-8268
United States

Frances Stewart

University of Oxford - Department of Economics ( email )

Manor Road Building
Oxford, OX1 3BJ, Oxfordshire OX13UQ
United Kingdom

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