Significant changes in public investment patterns - in both the sectoral uses of funds, and their geographic distribution - emerged after Bolivia devolved substantial resources from central agencies, to municipalities in 1994. By far the most important determinant of these changes are objective...

The most important theoretical argument concerning decentralization is that it can improve governance by making government more accountable and responsive to the governed. Improving governance is also central to the motivations of real-world reformers, who bear risks and costs in the interest of...

Bolivia's 1994 Popular Participation reforms devolved political powers and resources to hundreds of municipal governments throughout the land. The country is currently implementing a further round of reforms that would grant a degree of autonomy to departmental, regional, municipal, and...

We study the theoretical and empirical links between fiscal policy and spatial inequality, with a non-exclusive focus on Latin American countries. We outline the two main dimensions of fiscal policy vis-à-vis economic inequality, and show how these can be used to analyze specific policy...

We explore the impact of encomienda, a forced-labor institution imposed by the Spanish throughout Latin America during three centuries, on long-term development outcomes in Colombia. Despite being a classically extractive institution, municipalities that had encomiendas in 1560 have higher...

Over two centuries, Colombia transferred vast quantities of land, equivalent to the entire UK landmass, mainly to landless peasants. And yet Colombia retains one of the highest concentrations of land ownership in the world. Why? We show that land reform's effects are highly bimodal. Most of...

I examine decentralization through the lens of the local dynamics that it unleashes. The national effects of decentralization are simply the sum of its local-level effects. Hence to understand decentralization we must first understand how local government works. This paper proposes a theory of...

Collective action allows individuals to overcome market and state failures, something particularly relevant in rural areas and highly imperfect markets such as agricultural credit. We analyze data on over 2.3 million rural producers in Colombia, as well as on an original subnational database...

Donors increasingly fund interventions to counteract inequality in developing countries, where they fear it can foment instability and undermine nation-building efforts. To succeed, aid relies on the principle of upward accountability to donors. But federalism shifts the accountability of...

The paper analyzes the effects of land reform on social development - poverty and land distribution - at the local level. Land reform in Colombia, understood as the allocation of public land to peasant, has granted 23 million hectares which comprises around 20% of Colombian territory and about...