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Extra resources for Innovations and Risk Taking: The Engine of Reform in Local Government in Latin America and the Caribbean (World Bank Discussion Paper)

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Setsuya Sato and David Burras Humphrey No. 292 Regulated Deregulation of the Financial System in Korea. Ismail Dalla and Deena Khatkhate No. 293 Design Issues in Rural Finance. Orlando J. Sacay and Bikki K. Randhawa No. 294 Financing Health Services Through User Fees and Insurance: Case Studies from Sub-Saharan Africa. R. Paul Shaw and Martha Ainsworth No. 295 The Participation of Nongovernmental Organizations in Poverty Alleviation: The Case Study of the Honduras Social Investment Fund Project.

More qualified office holders are bringing in more professional staff. A sample of 16 municipalities in Colombia for which detailed data were gathered show that over the past ten years, the ratio of total staff to professionals dropped from 12:1 to 4:1. Mayors reported that these changes were aimed at tooling up to deliver better services. ) The rate of property tax increases doubled over the past decade across the entire spectrum of Colombia's more than 1000 municipalities. 5 percent; the average increase in the early nineties: 15 percent.

Taken togethernewly emerging regional interests, innovators, and proactive local governmentsthese changes constitute an opportunity for the Bank and donors to leverage assistance capacity by taking advantage of and building on the new dynamic already underway in LAC. A key step in moving toward self-sustaining change is to understand the process of innovation. Page 5 III An Inquiry into Dynamics of Change Purpose and Scope of Study Although the Bank has paid much attention to the financial and fiscal issues in decentralization, with few exceptions (such as the Venezuela Public Sector Review), Bank analysts pay insufficient attention to political and institutional preconditions needed to trigger reform.

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