Making Decentralisation Work in Chile

Towards Stronger Municipalities

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This report provides a comprehensive analysis of the challenges confronting Chile’s centralised growth model and recommendations towards developing a more integrated territorial approach, capable of mobilising regional productivity catch-up potential in order to strengthen the role of regions and municipalities.

The Chilean government has launched an ambitious decentralisation agenda, aimed at empowering municipalities by providing them with the legitimacy, financial resources, human capacities and tools required to improve their autonomy and performance. This study seeks to assist the government by covering several dimensions, looking at municipal responsibilities, fiscal and human resources, equalisation mechanisms, local public service performance,  citizen participation, and co-ordination mechanisms across levels of government.


The management challenge

Strengthening the human capacities and management tools of municipalities

This chapter focuses on improving municipal management and performance through adequate human resources and efficient tools for public service production, delivery and monitoring across the whole national territory. The first part is dedicated to the modernisation of human resource management (HRM) in Chilean municipalities, looking at the development of workforce planning and management, the strengthening of human resources capacity and the need to reinforce the HRM function at municipal level. The second part focuses on how to enhance the quality and efficiency of municipal services in Chile through the development of a municipal services management model, including the establishment of minimum standards for municipal services as a means to reduce territorial disparities, and the provision of appropriate incentives as well as a suitable institutional framework.


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