Chile: subnational government finance - download pdf or read online

By World Bank

ISBN-10: 0821325248

ISBN-13: 9780821325247

"Without major and lasting sociopolitical swap, Chile isn't anticipated to hitch the membership of constructed countries. the current essay encompasses a thorough exam of the subnational executive reforms which are had to bring up potency within the provision of simple healthiness, schooling, housing, a

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Extra info for Chile: subnational government finance

Sample text

If municipalities wish to raise the total amount spent on education, they should increase the central government PSS for both municipal and private subsidized schools to maintain the efficiency incentives of this system. (b) The problem of excess teachers in municipal schools should be resolved. This will entail an increase in pensions by the central government to encourage teachers past retirement age to retire, as well as payments from both the municipalities and the central government to create incentives for teachers to take early retirement or transfer to private schools.

In one sense, the municipalities have decided not to take the economically efficient but politically costly step of reducing the size of their teaching staffs. On the other hand, the central government has a substantial role in determining the number of teachers in municipal schools. In particular, the low level of pensions (currently pensions are much lower than salaries for older teachers) discourages retirement and, thus, downsizing by attrition. Municipalities want the central government to raise pensions, which would reduce the number of public school teachers by encouraging many teachers eligible for retirement to leave.

Priorities have not been settled, however. Perhaps the highest priorities for training include: the use of modern accounting and information technology; elements of the new legal base for subnational governments; general management skills; and long/medium-term financial planning. IV. A Strategy for Implementation 59. What are the options for implementing such a strategy (para. 7) in the short-, medium-, and long-term? Reforms to reduce the rapidly growing municipal subsidies for health and education must be addressed in the short-term.

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Chile: subnational government finance by World Bank


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