This case is aboutÂ CHANGE MANAGEMENT
PUBLICATION DATE: February 01, 1999
Municipal Decentralization in Buenos Aires: SequelÂ Case Solution
As a segmentof its efforts to recover from an oversized public sector, the government of Argentina specifically and hyperinflation the state of Buenos Aires seeks to control prices and improve service in local government. To do so, the provincial government tries a bold strategy: it splits three large suburban Buenos Aires municipalities up into eight new, smaller, authorities. This budgeting, financial management, and political strategy case focuses on the implementation of the move toward smaller, more local government, through the prism of the development of one of the municipalities that are new: the town of Hurlingham.
This note describes the nuts-and-bolts budget choices which a transition team of officials must make: how to structure the new authorities, how to increase tax receipts and the political conclusions which its new mayor confronts. He must decide which parts of the new town will get service precedence: high-voting rich districts where tax collection has not been high, or poorer areas from which the new mayor drew key electoral support? This case enables both for evaluation and demanding budget analysis of budget-related political strategy.