Over the last 25 years, the relevance of local governments (states, provinces, municipalities, etc.) in Latin America has been constantly increasing.
The process started with a wave of decentralization, particularly in the education and health sectors, followed by the increasing of other responsibilities of local governments (with the accompanying budget!), and most recently topped off by the allocation of additional investment resources fueled by the commodities boom of the mid-2000s. Currently, .
The World Bank has a long history supporting countries in the region as they transition political, administrative, and fiscal responsibilities to subnational levels, as part of national strategies for strengthening democracy, transparency, and efficient service delivery.