---

This book offers a step forward in finding out how the new decentralized institutional arrangements affect local economic development. In particular, it analyzes how local governments can use their increasing powers and responsibilities to improve productivity and quality of life in their territories.

---

Introduction
PART I: DECENTRALIZATION AND LOCAL ECONOMIC DEVELOPMENT
Exploring Conditions for Local Economic Development In Decentralized Systems of Government; T.Campbell
The Experience in Latin America; Rafael de la
PART II: LOCAL MANAGEMENT The Transformation of a Community to a Major Urban Center: The Mississauga Experience; H.McCallion
Washington, D.C.: Restoring the United States Capital; A.Williams
Catalonia: Overcoming Budgetary Limits with Public-Private Partnership and Performance Based Budgeting; S.Maluquer I Amorôs & A.Tarrach I Colls
Revitalizing Urban Centers; M.Silva & R.Chávez
PART III: MACROECONOMIC IMPACT
Decentralization and Macroeconomic Control; E.Stein
Lessons from the Argentinean Case of the 90´s; R.Lavagna
Fiscal Decentralization and Macroeconomic Performance; A.Shah
PART IV: SUBNATIONAL FINANCING
The Political Economy of Decentralization and Good Governance in Latin America; E.Ahmad & M.García-Escribano
Financing and Public Services in Belo Horizonte; J.Ribeiro Pires & µ.Pio Júnior
Reforming Mexico´s Fiscal Federalism; J.Antonio González Anaya
Subnational Entity Credit Risk Ratings; V.Manuel Herrera, D.Brandazza & F.Ortíz
Structural Funds for Regional Development in the European Union; R.Cobo Mayoral
PART V: COMEPTITIVENESS AND GLOBALIZATION
"Doing Business:" How to Improve Local Competitiveness; F.Almeida
Decentralization, Competitiveness and Globalization: Opportunities and Challenges; E.Wiesner
PART VI: LOCAL COMMUNITY PARTICIPATION
Decentralization in Colombia and the Transformation of Bogotá; J.Castro
The Private Sector as a Promoter of Citizen Control in Colombia; M.Fernanda Campo
Decentralization and Governance: from Authoritarianism to National Dialogue in Bolivia; R.Maclean Abaroa

---

"Fiscal and political decentralization has become a hot economic and political topic in recent years. The Local Alternative analyzes both positive and negative aspects related to this phenomenon and does so in an always objective, undogmatic, and policy-relevant way. It is a major work that will have much influence on Latin American policy, and its editors and authors deserve much praise. The book makes a monumental contribution to existing literature, and will surely become an essential reference for scholars and, more importantly, policymakers." - Dr. Vito Tanzi, Former Director, Fiscal Affairs Department, IMF

"So far much of the fiscal federalism literature has concentrated on decentralization at the regional level. This book makes an important contribution to the literature by focusing on the requirements for decentralization to effectively improve the provision of urban services at the local level. The interesting case studies illustrate in a compelling and "real-life" fashion the theoretical concepts developed throughout the book. This is a must-read for scholars and officials interested in decentralization issues." - Teresa Ter-Minassian, Expert on fiscal affairs and decentralization, Former Director, Fiscal Affairs Department, IMF

---