In the 1990s, Bolivia’s indigenous population mobilized to claim new political roles, and in the process, directly challenged the privileged position of economic elites within national political institutions. In response, business associations in Santa Cruz, Bolivia’s most prosperous region, began to demand regional autonomy—in contrast to the demand for authoritarianism that characterized prior generations of business elites when confronted with threatening political change. After examining Santa Cruz’ past relationship with the national government, this article explores the challenges that led economic elites in the department to seek autonomy and the strategies that they have adopted in pursuit of this goal.
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Decentralization has swept across the developing world in recent years. Although the speed and scope of the shift toward more decentralized practices is striking, decentralization is neither inevitable nor irreversible. Rather, it faces enormous political obstacles and can be subject to serious setbacks. This article accounts for attempts by national politicians to thwart decentralization in two countries that recently adopted some of the most significant decentralizing changes in their respective regions: Argentina and the Philippines. Based on fieldwork in each country, it suggests that even after the political decision to decentralize has been made, national politicians may face deep-seated incentives to preserve centralized control over fiscal policy. In Argentina, President Carlos Menem partially reversed the previous decentralization of revenue because fiscally-independent provincial governors were a challenge to his political interests and capabilities. In the Philippines, legislators attempted to reverse and then circumvent decentralization since it threatened their status as brokers claiming personal credit for negotiating fiscal transfers from the centre. The article identifies an intermediate outcome in both countries, according to which decentralizing policies are neither entirely reversed nor implemented as initially designed.
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