Abstract:

This working paper analyzes the recent regulatory framework for decentralization in Chile, focusing on the institutional design of regional governments from four perspectives: administrative, fiscal, political, and governance. Through a review of the reforms introduced—particularly those implemented over the past decade, which include the direct election of the chief regional authority, adjustments to the budgetary structure, and progress in the transfer of powers—the study examines the scope and limitations of efforts to strengthen regional governments. The analysis shows that, while the reforms have introduced significant—and long-awaited—changes to the institutional architecture, structural constraints persist that perpetuate the regional level’s dependence on the central government, as evidenced by fiscal dependence, political fragmentation, and the lack of intergovernmental coordination mechanisms. Taken together, these elements shape a nonlinear path of decentralization, in which progress coexists with persistent dynamics of state centralization.

Keywords: Chile; decentralization; regional governments; territorial governance.