Areas of Action
Despite decentralization, subnational governments have failed to significantly increase their financial and institutional capacities
Citizen participation in urban management remains weak.
The ability to generate internal resources remains very limited, which, together with the fact that they are generally not credit recipients, plunges cities into a vicious circle of disinvestment and lack of urban services. Revenue collected from the real property tax remains low, at less than 0.5% of GDP.
Lines of action
- Strengthening city governments and local institutions that have urban planning and citizen service responsibilities
- Improving the quality and efficiency of entities providing urban public services
- Supporting integrated urban planning, including the creation of master plans for environmental risk management;
- Strengthening municipal finances through medium-term fiscal planning, the capture of increases in property values, and the strengthening the capacities of local governments to prepare and evaluate local economic development projects;
- Increasing citizen participation and improving the transparency of local public expenditure planning, programming, and execution processes;
- Promoting efficient, progressive models for the management, operation, and maintenance of infrastructure, equipment, and urban services