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Throughout Latin America, central governments are decentralizing resources and decision-making powers to the subnational level. Although in theory decentralization promises better management of local entities - which should in turn promote economic development - in practice this link is not entirely clear and invites exploration. This book offers a step forward in finding out how the new decentralized institutional arrangements affect local economic development. In particular, it analyzes how local governments can use their increasing powers and responsibilities to improve productivity and quality of life in their territories. It considers the channels through which the relationship between decentralization and economic growth has occurred and can occur.
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