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Published online by Cambridge University Press: 05 April 2001
This article critically evaluates hypotheses that attribute decentralisation in Latin America to democratisation and economic liberalisation. It examines these hypotheses in historical perspective by looking at the experience over time with revenue decentralisation and recentralisation in Argentina, one of Latin America's early decentralisers. Because neither the democratic election of subnational officials nor the pursuit of economic liberalisation is unique to the contemporary period in Argentina, the Argentine case represents an opportunity to gain analytical leverage on the theories emerging in the contemporary period. The paper presents qualified support for the argument that democratisation drives decentralisation and confounding evidence for the liberalisation hypothesis.