Local governance, the first line of defense for democracy: the decisive role of subnational governments

By: Mileny Santillán

Public trust in institutions is facing difficult times in our region. Structural challenges persist, accentuated by growing polarization and solutions that seem distant. 

In this context, strengthening subnational governments as central actors in democracy, emerges as a key strategy for building territorial equity, democratic security, and institutional resilience.

Decentralization, understood not only as the transfer of powers but also as capacity building, is essential for bringing the state closer to communities and reconfiguring governance from the local level. 

However, the reality shows that much remains to be done. A study by the Inter-American Development Bank (IDB, 2023, p.14) points out that 64% of Latin American municipalities lack updated development plans and 71% face a shortage of technical personnel in key areas.

When subnational governments have real autonomy, stable resources, and skilled technical teams, public policies become fairer, more effective, and better suited to each area. 

Comparative examples within the region demonstrate this. In Colombia, fiscal decentralization has enabled investment in rural areas through co-financing schemes between the nation and departments (ECLAC, 2022).

In Mexico, institutional strengthening programs have improved municipal transparency and accountability (UNDP, 2022). 

In Chile and Uruguay, data-driven urban planning has made it possible to prioritize interventions in vulnerable areas with measurable social impact (IDB, 2023).

Multilevel cooperation can translate into concrete results. States such as California, New York, and New Jersey have developed coordination frameworks between counties and cities to address issues of housing, transportation, and disaster resilience. 

In California, for example, planned densification and affordable housing initiatives have required partnerships between the state, counties, and cities to channel funds and manage development permits efficiently (California Department of Housing and Community Development, 2023).

Even so, autonomy without capacity is insufficient, and capacity without autonomy does not reach its transformative potential. 

Therefore, a continental agenda is proposed that articulates the following strategic lines:

1.    Verifiable minimum standards of institutional capacity.

2.    Platforms for horizontal cooperation between local governments and networks for collaboration, partnerships, co-design, and joint management of common challenges.

3. Integration of territorial planning with innovative local governance mechanisms (citizen participation, inter-institutional coordination, and early impact assessment).

4. Creation of spaces for multilevel and multi-stakeholder dialogue, with stable financing and mechanisms for prioritizing investments.

5. Design of integrated monitoring and accountability systems that combine performance indicators, independent verification, and active citizen participation.

Democracy is built from the bottom up, and strengthening subnational governments is essential for equity, security, and democratic resilience in the Americas. 

Several of these lines were reaffirmed at the Hemispheric Dialogue Forum with Subnational Governments implemented by the Organization of American States (OAS) (March 25, 2025), which has taken on a decisive role in bringing about this change. As the most important political forum on the continent, it has successfully opened a path from the heart of democracy: the subnational level of government, establishing a continental platform for exchange that promotes technical cooperation, intergovernmental dialogue, and institutional innovation.

Based on these experiences, it can be inferred that closer hemispheric cooperation, with substantive contributions from the continent’s subnational experiences, can enrich local governance policies in the Americas, promoting capacity standards, collaboration networks, and open data platforms that facilitate participation and impact assessment to reduce inequalities and improve the effectiveness of public policies.

The challenge is clear: it is time to work together to build a new institutional architecture that prioritizes local governance and participation and facilitates closer cooperation.

Hemispheric unity is needed for joint action that mitigates the effects of polarization and strengthens governance, with substantive contributions from subnational governments as central actors in democracy.

 

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