Boosting Competitiveness Through Decentralization: Subnational Comparison of Local Development in Mexico

Decentralization is accepted as one of the defining features of the third wave of democratic transitions in Latin America and commonly understood as an index and an agent of democratization. This rather optimistic perspective is inherent in the literature which is dominated by two theories. The liberal-individualist approach, especially as advocated by the World Bank, promotes decentralization policies on the premise of their efficiency, equity, and responsiveness to local demands. Similarly, the statist approach claims that decentralization can be the route to greater accountability, transparency and participation in governance