In his book, The Quiet Revolution, Tim Campbell, an urban advisor with
the World Bank Institute, traced the growth and effects of decentralization and
democracy in Latin America through the 1980s and 1990s. Based on first-hand accounts
from mayors, local officials and neighborhood leaders, Campbell focused on those
cities and towns that made the most of their new intergovernmental arrangements.
He argued in the book that the reforms, which are vital to long-term sustainable
growth in the region, need much stronger support from national and international
institutions in order to survive. His research, conducted over a ten year span,
counters conventional wisdom about the role of development banks in process of
state reform.
Frannie Leautier, Vice President of the World Bank Institute, provided
introductory comments. She noted that Campbell’s involvement with the World
Bank as an urban expert in Latin America, starting in the late 1980s, came at
a fortuitous time since the region was experiencing significant urbanization.
He has pushed issues such as street children, city development strategies, disaster
management during his tenure with the World Bank. Leautier said the book was
in part based on economic and sector work that the World Bank conducted a decade
ago, which allowed the author to take an historical perspective on the results,
as well as learn how this work was perceived by stakeholders. She noted the
book comes at an important time when the institution is thinking about new instruments
for its clients.
Campbell said many countries in the world are currently decentralizing and
asking similar questions that were being asked in Latin America in the 1990s.
He began working on a decentralization project in the region in 1991, which
was the genesis for the book. During the mid-1990s, he was able to monitor the
progress of decentralization in the region, but also was watching how countries
in other regions were implementing similar policies and facing similar problems.
During the late 1980s, a number of countries in Latin America started making
reforms in the financial sector, allowing more decision making at local government
levels, and democratization. Local officials found significant new financial
resources available to them. Concurrently, spending was often not reduced by
the central government. Campbell emphasized the importance of reforms in the
electoral system by local governments during this period. He believes the financial
reforms, in fact, were starting in the first half of the 1980s.
The new model of governance placed more responsibilities on local officials.
Local officials began addressing issues not touched by them in the past such
as environmental protection. After reforms began, officials with professional
backgrounds were being elected in greater percentages than had been the case
previously. Campbell said the incentives had changed, and governments were able
to attract individuals with higher qualifications to administer public services.
Taxes rose, but Campbell said the willingness by the public to pay taxes also
rose because the public equated the taxes with successful delivery of services.
Civil society was given a greater voice in this participatory model. Mayors
began surveying constituencies for their thoughts on policies and issues of
concern.
Campbell described several case studies that were representative of the changes
undertaken. Fiscal balance and fiscal responsibility, rights and responsibilities
of local and central governments, more efficient local government, good government
and public transparency, and economic development are all areas that Campbell
should be the development focus in the future. Management of government, electoral
reforms, and horizontal learning between municipalities are important areas
to concentrate on, he said. Pitfalls include backdoor recentralization (he characterized
Peru under Fujimora as an example) and unsteady capital flows. Changing the
incentive structure will be critical, Campbell said. He noted many successful
municipalities have good think tanks nearby, which suggests a lesson is there
to be learned. Additional lessons that can be taken from the Latin American
experience include rationing borrowing capacity, selective devolution, and horizontal
learning.