A University of Notre Dame-led study uncovers the challenges that socioeconomic inequalities pose for local governments in Chile and emphasizes the need for strategic, targeted interventions to improve public satisfaction and service delivery.
Local governments play a critical role in developing countries, providing essential public services that enhance human development and tackle pressing issues like extreme weather, unemployment and crumbling infrastructure. However, these governments often struggle to implement programs that effectively address the diverse needs of their citizens, especially in regions plagued by significant socioeconomic inequalities.
A recent study led by Krister Andersson, a professor of sustainable development at the University of Notre Dame’s Keough School of Global Affairs, examines the profound impact that economic and social inequalities have on local governance in Chile.
The findings, published in World Development, highlight the challenges faced by local governments in delivering quality services in a nation with substantial economic disparities.
The research utilized a dataset covering 56 local government territories in Chile from 2000 to 2014, employing multilevel modeling to analyze citizen satisfaction with government performance. The study looked into various policy approaches — from top-down sector-based support to bottom-up demand-driven funding — to determine their effectiveness.
Importantly, the study found that socioeconomic inequalities often trap local governments in a cycle of limited resources, rising inequality and diminishing capacity to meet public needs.
“Interventions to help local governments to deal with inequality seem to be most effective when they recognize a leadership role and some autonomy of local leaders,” Andersson said in a news release.
The study evaluated four national programs designed to mitigate the adverse effects of inequality on local governance. Astonishingly, only one program proved effective, while the other three either had no impact or exacerbated the situation.
The findings revealed that as economic disparities widened, public satisfaction with local government services significantly declined. Poorer territories expressed greater dissatisfaction, while wealthier citizens, less dependent on government services, were less affected.
Local governments in these regions struggle with limited resources, insufficient staffing and inadequate infrastructure, all of which hamper their ability to meet the diverse needs of their communities. Despite substantial national investments aimed at improving infrastructure and public services, many initiatives failed to narrow the gap between rich and poor.
These insights underscore the complexity of improving local governance in contexts of high inequality. Andersson emphasized the need for strategic, targeted interventions to break the cycle of inequality and enhance public satisfaction.
“These findings underscore the challenge faced by national governments trying to address inequalities. Simply increasing earmarked funding to local governments may not be sufficient,” he concluded. “We see the importance of carefully designed policies and strengthened local governance structures to improve service delivery and address persistent socioeconomic inequalities.”
The study offers a compelling call to action for policymakers striving to enhance local governance in the face of growing economic divides.