Table of Contents

Environmental Governance and Decentralisation

Environmental Governance and Decentralisation

New Horizons in Environmental Economics series

Edited by Albert Breton, Giorgio Brosio, Silvana Dalmazzone and Giovanna Garrone

This book examines how different countries define and address environmental issues, specifically in relation to intergovernmental relations: the creation of institutions, the assignment of powers, and the success of alternative solutions. It also investigates whether a systemic view of the environment has influenced the policy-making process. The broad perspective adopted includes a detailed analysis of seventeen countries in six continents by scholars from a range of disciplines – economics, political science, environmental science and law – thus producing novel material that moves away from the conventional treatment of decentralisation and the environment in economic literature.

Chapter 11: Chile: The Development–Sustainability Dilemma

Tommaso Chiamparino, Laura Piazza and Irene Venturello

Subjects: economics and finance, environmental economics, public sector economics, environment, environmental economics, environmental governance and regulation


361 The responsibilities of the regional institutions match those of the deconcentrated divisions of the central ministers (SEREMIs). The law also institutes a territorial division of the region and recognizes a provincial level of government. Both the regional and the provincial governments are conceived as administrative branches of the central government, strictly dependent on the Presidency of the Republic; their principal duties are to promote investments and to manage funds aimed at increasing the development of the regions, with particular attention to projects dealing with the environment (see Figure 11.1). As far as the financing system is concerned, the Municipal and the Regional Laws provide both autonomous and state incomes. The Regions only have at their direct disposal the proceeds from taxes (patentes) based on the ground space (square metres) occupied by the firms and not on their business volume. The Municipalities’ own fiscal incomes derive from driving licences and territorial taxes on commercial activities,3 but they are still quite small. The distribution of regional and municipal financial resources, then, is mostly determined by the national government, which divides them Territorial Political/Administrative Central Government Central Government Regions (13) SEREMIs Regions Provinces (52) Provinces Municipalities Municipalities (341) Cooperation Weak Regulatory Powers Strong Regulatory Powers Deconcentrated bodies Has elected council and mayor Figure 11.1 Chile’s administrative and territorial organization 362 Non-federal countries with compensative criteria between the National Funds for Regional Development (Fondo Nacional de Desarrollo Regional) and the Municipal Common Funds (Fondo Común Municipal). These funds are allocated to...

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