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Annual Conference of MontrealApril 19th, 2001 VISION OF THE AUTHENTIC FEDERALISM “ACHIEVEMENTS AND CHALLENGES OF FISCAL DECENTRALIZATION.LESSONS FROM MEXICO” THE WORLD BANK (2001) STRATEGIC MODEL 1. POLITICAL DECENTRALIZATION 2.STRENGTHENING OF LOCAL GOVERNMENTS Annual Conference of MontrealApril 19th, 2001Organized by: Conférérencede Montréal and Forum of Federations / Forum des fédérationswww.forumfed.org * : forum@forumfed.org“STRATEGIC STATE REFORMS TO MOVE TOWARDS AN AUTHENTIC FEDERALISM IN MEXICO”byCarlos GadsdenGeneral Directionof theNational Center for Municipal Development MexicanMinisteryof InteriorSTATE REFORM TO MOVE TOWARDSAN AUTHENTIC FEDERALISM MEANS:TO SHIFT FROM•A PRESENT SCENE OF PARALLEL GOVERNMENTS COMPETINGUNEQUALLY IN THE SAME GEOGRAPHICAL TERRITORY AND BEFORE THE SAME POPULATION TO •A SCENE OF A COHERENT ARCHITECTURE OF GOVERNMENTS CENTERED ON THE CITIZENS.THIS IS THE HEART OF THE STATE REFORM IN MEXICO.VISION OF THE AUTHENTIC FEDERALISM•Autonomous and strong municipal governments rightly supported by the states and the federal governments;•Sovereign and prosperous states,•Federal powers able to guarantee both unity and equity among the Mexican people.•Governmental authorities committed to the legitimate aspirations of their citizenship.•A mexicanState ruled by the law, democratic socially oriented and federalist.“ACHIEVEMENTS AND CHALLENGES OF FISCAL DECENTRALIZATION.LESSONS FROM MEXICO” THE WORLD BANK (2001)“Decentralization often has major effects on concerns ranging from macroeconomic stability to poverty alleviation, the provision social and the quality of governance. Decentralization is worldwide andits meaning, implementation, and effects vary from county to country.The experience pointto three lessonsapplicable everywhere.1) A country decentralizing its public sector needs to develop acoherent decentralization strategy.2) A successful strategy requires adequate institutional infraestructureto develop, monitor and implement the decentralization policy.3) Latin American experience with decentralization shows that abrupt, across-the-board efforts have generaly failed. Countries have had to go back to incremental decentralization, with differentiated rules according to different management capacity of territorial units.”STRATEGIC MODEL1. POLITICAL DECENTRALIZATION•Fiscal Federalism•Federal Functions liable to be decentralized to the Local Governments•Decentralization and Reduction in the Federal States2.STRENGTHENING OF LOCAL GOVERNMENTS•Professionalizationand Training of public administrators•Constitutional Reformation of article 115 allowing reflections of local authorities•FederalismOffice for intergovernmental relationships•Redistributionof functions among the three governmental levels(Constitutional Reformation of severalarticles)•Mechanisms of IntergovernmentalCommunication•Internet everywhere(E-México)•Communication and cultural change•International Conference on Federalism with the Forum of Federations atVeracruz, November2001•Participation of citizenship, states and municipal authorities in the Board of the National Instituteof Statistics, Geography and Information