Descentralization Local government occupies a critical economic and political space in which socio-economic development can be promoted, democracy enhanced and democratic governance strengthened. In the Americas the consolidation of democracy has been accompanied by decentralization processes set in motion or intensified from the 1980s. Decentralization promotes the transfer of political power, competencies and resources from central government to intermediate or municipal orders of government. Today most local governments are the product of elections and are thus accountable to their electorate. The transformation of the State and of government institutions is both a technical and political process which demands a new model of public administration, the institution of new legal norms and policy frameworks appropriate to contexts which are complex, among other factors because of the variety of actors involved. When looking at progress in decentralization processes across the hemisphere one can point to the improvement in normative frameworks, the many innovations in public administration, the evolution of new centers of development and the promotion of citizen participation in public policy. Nonetheless challenges persist, for example the need for greater clarity in the assignment of competencies; reliability in the transfer of resources; identification of sources of local income; the establishment of municipal autonomy; management of macro-economic risks; implementation of appropriate policy adjustments to foster local development; sustained dialogue and coordination among the different orders of government. Aside from considerations of its advances and challenges, decentralization continues to be a key instrument for state modernization. Its potential as a tool of public administration; for territorial organization; to facilitate improved access to basic services such as water, or to social services such as education, health, transport; to bring power closer to the citizen and to promote citizen participation in public policy; to promote equitable development and strengthen the legitimacy of political institutions, among other advantages, should be harnessed to the benefit of democratic governance. The support offered by the Section on Decentralization of the Department of State Modernization and Governance (DMEG) derives directly from commitments of the Inter-American Summits which have recognized the importance of regional and municipal administrations. The Summits have indicated that citizen participation and adequate political representation are the foundation of democracy and that local governments are closest to the daily lives of citizens. Similarly the Department’s support is based on resolutions of the General Assembly of the Organization of American States (OAS) approved with the objective of supporting compliance with those commitments. Moreover the Inter-American Democratic Charter points to the relationship between democracy, integral development and the fight against poverty. The local level of government represents a space which concentrates both political and economic power, thus rendering it imperative to deepen the analysis and development of those orders of government and their relationship to central government and to democratic governance. This Section of the Department will have three principal areas of focus: A. As technical secretariat, it will provide support to the High-Level Inter-American Network on Decentralization, Local Government and Citizen Participation (RIAD), a policy forum established by OAS Member States for institutionalized support and systematic follow-up to Summit commitments. The network offers a forum for dialogue and consensus-building among government authorities responsible for policies on decentralization, through:
B. The Section will explore the relationship between decentralization and democratic governance by developing a program in this area as a contribution to RIAD’s work. In this connection it will contribute to the systematization of experiences in municipal management made possible by decentralization processes, and provide technical support to the development of intergovernmental relations to strengthen and governance. C. The Section will coordinate with other Sections of the Department and of the General Secretariat.
2. Other offices of the General Secretariat, to develop strategic guidelines for public policy or decentralization, in particular:
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