New Horizons in Environmental Economics series
Edited by Albert Breton, Giorgio Brosio, Silvana Dalmazzone and Giovanna Garrone
Chapter 11: Chile: The Development–Sustainability Dilemma
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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