CALL FOR PROPOSALS


                     CAF RESEARCH PAPERS PROGRAM



     The Corporacion Andina de Fomento (CAF) invites
     applications for its Research Papers Program. The Program
     invites proposals for research papers on topics of interest
     to CAF. CAF will provide economic support to the proposals
     selected, and finished papers will be presented in a
     seminar and distributed.



     ELIGIBILITY:


     The program is intended primarily, but not exclusively, for
     researchers associated with Latin American universities,
     research institutes and other private or public
     institutions in Latin America.


     The invitation is also extended to assistant professors,
     researchers or post graduates from CAF member countries
     working in US or European institutions with focus on topics
     related to Latin America.



     TOPIC:


     This year, the program will focus on: "Decentralization
     and Local Development in Latin America".


     The process of decentralization has advanced steadily in
     the region over the last 20 years. This process has
     involved increasing political rights to sub-national
     communities and jurisdictions, allowing them to elect their
     own local and regional authorities, as well as the
     decentralization of fiscal instruments and policies. A
     greater level of autonomy of regions and local governments
     aims at improving the overall functioning of the public
     sector. In other words, an immediate objective is that of
     achieving better efficiency in the management of
     expenditures and revenue decisions. Nevertheless, the
     ultimate test for whether decentralization works is whether
     it can be an instrument for local development. The
     connection between decentralization and regional and/or
     local development has been much debated and no clear
     consensus has been reached. On the one hand, the
     devolution of political, fiscal and economic powers serves
     to unleash creative forces at the regional and local level,
     allowing communities to be more responsible for their own
     actions and to achieve a better match between policies and
     local needs. On the other hand, decentralization implies a
     lesser role for national states as equalizers of economic
     and fiscal capacities across regions. The net effect of
     these two forces could be positive for relatively rich
     regions and negative for less developed ones, which of
     course would imply that devolution is accompanied by an
     increase in regional disparities. This problem is likely to
     be exacerbated by pre-existing differences in local
     management capabilities.


     In the context of this debate, the present call for papers
     aims at fostering research on issues related to
     decentralization and regional and local development. In
     particular, proposals should address one or more of the
     following questions. Preference will be given to empirical
     work based on micro data.


     Is decentralization associated with a process of regional
     convergence in economic development and living standards
     within countries?


     What are the channels through which decentralization may
     drive such convergence/divergence?


     Does decentralization imply better efficiency in the
     provision of local public goods and  in public expenditure
     programs?


     Does decentralization of revenue decisions help increase
     the local governments' tax effort?


     Do intergovernmental fiscal arrangements such as
     intergovernmental transfers foster convergence?


     Has fiscal decentralization been associated with soft
     budget constraint-type behavior on the part of sub-national
     governments?


     How do globalization (for example, trade liberalization)
     and decentralization interact to produce a given pattern of
     convergence or divergence across regions?


     To what extent is decentralization of revenues associated
     with the exploitation of natural resources as a source of
     regional divergence within countries?


     Does decentralization play a role in the quality of public
     sector planning or viceversa?



     PROGRAM CONDITIONS:


     CAF will pay US$ 10.000 to selected proposals.
     Additionally, it will pay travel (economy class) and
     lodging expenses to present the paper, either in a seminar
     to be held at headquarters in Caracas, or in a CAF
     sponsored session at the next LACEA Annual Meeting (in this
     second case a preliminary version of the paper may be
     presented).


     CAF reserves the right to publish and distribute resulting
     works. Selected papers may be used as background papers for
     CAF's annual publication Reporte de Economia y Desarrollo.
     Also, selected papers may be chosen for publication, in
     Spanish, in CAF's journal Perspectivas. Authors are free to
     submit sponsored papers to specialized journals or
     publications or to use them to fulfill academic
     requirements, provided that CAF sponsorship is
     acknowledged. If authors prefer to submit finished papers
     elsewhere, we request authors commit to writing - in
     addition to the technical paper - a shorter, policy-
     oriented version of the paper for publication in
     Perspectivas and/or distribution by CAF in other outlets.



     APPLICATION PROCEDURE:


     Proposals should not exceed 8 pages and must include the
     following


     - Title
     - Abstract
     - Objectives and relevance for the region
     - Research methodology
     - Outline of research and timetable
     - Bibliography


     Additionally, proposals must be accompanied by a Curriculum
     Vitae and a letter of support from the researchers'
     institution or, in the case of graduate students, from
     their academic advisor.


     Proposals (and papers) may be in either English or Spanish.


     All material should be sent via e-mail to:


     CONTACT:       CAF Research Papers Program
     Email:         MAILTO:desarrollo@caf.com
                    Corporacion Andina Fomento
                    Caracas, Venezuela


     Applications must be submitted by May 2, 2008. Early
     applications are encouraged.


     Proposals will be evaluated by a jury appointed by CAF and
     decisions will be made on the basis of the quality of the
     proposal and of its relevance to Latin America. Results
     will be announced by May 30, 2008.


     Final papers must be submitted by November 30, 2008.


     For further information, please contact:


     CONTACT:       Stefania Scandizzo
     Email:         MAILTO:Stefania.Scandizzo@caf.com
     Tel:           0058-212-2092240


     CONTACT:       Irene Sierraalta
     Email:         MAILTO:Irene.Sierraalta@caf.com
     Tel:           0058-212-2096505


     All applications will be acknowledged. If you do not
     receive an email acknowledging receipt of your application,
     please contact Stefania Scandizzo or Irene Sierraalta.


     Further information about CAF and the program can be found
     At:


                    http://www.caf.com




Posted 3/20/08

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