Chilean regionalization requires fiscal autonomy and investment drive

Discussions regarding the future of decentralization in Chile emphasize the need for a new regionalization model that moves beyond mere administrative transfers. Experts suggest that true development requires a balance of political, administrative, and fiscal decentralization, supported by multi-level governance involving universities, businesses, and civil society.

Key pillars for this transition include the effective transfer of competencies to regional governments and the establishment of fiscal autonomy. Successful models internationally show that regions benefit from the ability to collect certain taxes and manage their own investment priorities and budgets.

Furthermore, there is a call for regional governments to take a more proactive role in attracting foreign direct investment. Rather than relying on the central government to manage all international capital, regional authorities could adopt a model similar to metropolitan mayors in the United Kingdom, acting as economic promoters to secure funding for urban infrastructure, electromobility, and environmental management.