This report is intended to support theanalysis and implementation of reforms aimed at astrengthening of the intergovernmental system in Colombia.In mid-2007 congress approved a legislative act asconstitutional amendment that increases the level of themain transfer to sub-national governments, the GeneralSystem of Transfers (SGP). However an adjustment of theregulations and institutional arrangements within thesectors is still pending. The report is intended to provideempirical evidence and technical inputs for a design ofthese complementary measures that are required. It willfocus on examining how efficient sub-national governmentsare in service delivery within the existingintergovernmental arrangements and incentive framework. Itwill also analyze the underlying causes of low performanceand suggest options for the government to address thischallenge. The emphasis is on three sectors: education andhealth, which are both financed primarily by the SGP; andthe road sector, which is financed outside the SGP. Thisfocus will make evident the different types ofintergovernmental management systems and the implicationsfor efficiency.
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