Descentralización y pobreza: Un análisis para la región Caribe colombiana

Abstract

This study explores the relationship between fiscal decentralization and poverty at the spatial level in Colombian municipalities. We use data on both material and non-material deprivation (Multidimensional Poverty Index) and examine the dependence on transfer resources across 1,101 municipalities in Colombia in 2005 and 2018. For this purpose, we use the bivariate Moran's index for analysis. The findings reveal a distinct positive spatial clustering, highlighting the proximity between municipalities with high poverty levels and strong dependence on transfers. This clustering has intensified in recent years, particularly in the peripheral areas of the country, with a notable emphasis on the Colombian Caribbean region. Recommendations focus on strengthening tools to enhance the collection of key municipal taxes (property, and industry and commerce taxes). Additionally, there is a call for increased flexibility in the use of resources received through transfers, considering the fiscal and well-being heterogeneities of the territories.