Santa Cruz de la Sierra: Only Viable Municipality | Único municipio viable

By El Diario:

A municipality out of 343 meets six viability criteria

CONSULTANT GROVER BARJA DURING THE PRESENTATION OF THE STUDY. PHOTO: EL DIARIO

According to a study by Fundación Jubileo, to define the viability of a municipality it must meet at least six criteria. After investigating 343 municipalities, it was verified that only one complies with all these parameters, while in contrast, 34 comply with none. In view of this situation, an expert affirms that “a large part of Bolivian municipalities have many problems to solve.”

The study, entitled “Municipal Viability in Bolivia, Decentralization System and Territorialization in the Public Debate”, was carried out by Jubileo consultant Grover Barja.

The expert explained that “viability is the capacity of a municipality to fulfill the function for which it was created, to do so with sufficient flexibility and resources to carry out those functions related to the well-being of its population, the municipality as a territory.”

Therefore, in order to understand the causes why several municipalities are losing resources and population, among other aspects, a study on Municipal Viability in Bolivia was projected. For the analysis, six criteria were taken into account related to the fiscal, administrative, demographic, economic, social, and human capital spheres.

“The reason was the existence of many municipalities that are losing resources and fiscal transfers, in addition to population, because they are becoming urbanized. So what is going to happen to those municipalities in the future?” argued Barja.

To that end, 343 municipalities in the country were investigated and, among the results, it was noted that “only one complies with the six criteria and applies them. That is Santa Cruz de la Sierra. This shows that, first, it is possible to meet the six criteria, and second, that a large part of the municipalities have a long way to go and many problems to resolve.”

But, in contrast, it was also confirmed that 34 municipalities do not meet any of the criteria, which is concerning for the researcher.

Meanwhile, 21 municipalities, among them La Paz, comply with five of the viability criteria; 87 with four; 61 with three; 90 with two; and 75 with one.

CRITERIA

Fiscal viability: according to the study, only 5% of the 343 municipalities in the country manage to generate their own revenues equal to or greater than 20% of their income. The vast majority depend on transfers from the central government.

Administrative viability: meanwhile, more than 80% have the capacity to execute at least 60% of their annual budget, and although this indicates reasonable formal efficiency, it does not mean tangible improvements in the population’s well-being.

Demographic viability: the Framework Law on Autonomies considers that a municipality should have a minimum population of 10,000 inhabitants. However, nearly 42% of the country’s municipalities do not reach this figure, which limits their long-term sustainability and their capacity to offer efficient services to the population.

Economic viability: 64% of municipal entities are not located at or above the median level of productive activity and its distribution (municipal GDP and GDP per capita). This indicator reveals weak productive bases that reduce the ability to generate employment and local income.

Social viability: nearly 68% of municipalities fail to achieve sufficient basic coverage to qualify as socially “viable,” as they show indicators of multidimensional poverty, unmet basic needs, and insufficient access to basic services.

Human capital viability: this considers the percentage of the population that completed secondary education, low child malnutrition, and women’s labor inclusion. 85% of municipalities do not meet these goals, a situation that highlights persistent educational shortcomings and gender gaps.

RECOMMENDATIONS

At a time when Bolivia is facing crises in various areas, it is essential to look toward the long term and put structural issues on the agenda, such as debating the decentralization system, territorial organization, or political-administrative division, with a view to steering the State toward more sustainable development for all.

Based on the study’s results, Barja recommended that, as a first step, municipalities should establish one or two missions so that all actors direct their efforts and resources toward fulfilling those missions.

“These missions are decided by the inhabitants, the actors of the municipality, so in that way the problem of autonomy in the use of transfers is resolved. Transfers should be directed toward the municipality’s interests, and those interests will be reflected in the missions they have defined,” he stated.

In addition, transfers should be used to create investment funds with rules for their use, in order to make long-term investments capable of generating true economic activity, which in turn can generate municipalities’ own revenues.

OTHERS

René Martínez, a public budget analyst at Fundación Jubileo, pointed out that, among other results, the study reveals that, according to the population criterion, only 77 out of 343 municipalities would be viable.

“So only 20 or 22 percent of municipalities could be viable over time, and we see that this trend could become even more complex in the future, because in our country we have been urbanizing. There have been population shifts in recent censuses, showing an increasingly urban profile. We have a large number of municipalities with very few inhabitants, very few resources, and very little capacity to offer development opportunities to their population,” he observed.

Among other results, only 5% of the country’s municipalities generate their own revenues equal to or greater than 20% of their income, while the majority depend on transfers from the central government.

CONSULTANT GROVER BARJA DURING THE PRESENTATION OF THE STUDY.
PHOTO: EL DIARIO

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