CEU eTD Collection (2012); Gomez Sanchez, Mariana: The efficiency of decentralized infrastructure spending at municipal level in Mexico

CEU Electronic Theses and Dissertations, 2012
Author Gomez Sanchez, Mariana
Title The efficiency of decentralized infrastructure spending at municipal level in Mexico
Summary The main goal of the decentralized process in Mexico has been to improve social development to those more in need – in concrete poverty alleviation- through out an equalizing policy. To achieve this purpose, the federal government has devolved financial resources to states and municipalities by means of conditional transfers so as to make public spending more efficient. This research assesses whether resources transferred from the federal government to municipalities to cover infrastructure services have been spent efficiently so as to generate social impacts. For this purpose, an analysis of municipalities spending performance in terms of infrastructure during 2000 to 2010 has been carried out. Findings reveal that despite allocation of decentralized resources has been invested in infrastructure under a redistribute character; budget increase does not generate larger services provision. In this sense, there is a gap between resources spent and greater development. This implies that the design of conditional transfers does not create the right incentives to municipalities to improve their level of development. Thus, my research suggests that infrastructure spending has not being efficient enough to contribute to decentralization and it should be rethought.
Supervisor Achim Kemmerling
Department Public Policy MA
Full texthttps://www.etd.ceu.edu/2012/gomez-sanchez_mariana.pdf

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