<?xml version="1.0" encoding="ISO-8859-1"?><article xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance">
<front>
<journal-meta>
<journal-id>2518-4431</journal-id>
<journal-title><![CDATA[Investigación & Desarrollo]]></journal-title>
<abbrev-journal-title><![CDATA[Inv. y Des.]]></abbrev-journal-title>
<issn>2518-4431</issn>
<publisher>
<publisher-name><![CDATA[UNIVERSIDAD PRIVADA BOLIVIANA]]></publisher-name>
</publisher>
</journal-meta>
<article-meta>
<article-id>S2518-44312025000200074</article-id>
<article-id pub-id-type="doi">10.23881/idupbo.025.2-1e</article-id>
<title-group>
<article-title xml:lang="en"><![CDATA[Sustainable finance and horizontal fiscal equalization: the case of bolivian municipalities]]></article-title>
<article-title xml:lang="es"><![CDATA[Finanzas sostenibles e igualación fiscal horizontal: el caso de los municipios bolivianos]]></article-title>
</title-group>
<contrib-group>
<contrib contrib-type="author">
<name>
<surname><![CDATA[Fernández-Tellería]]></surname>
<given-names><![CDATA[Bernardo X.]]></given-names>
</name>
<xref ref-type="aff" rid="Aff"/>
</contrib>
<contrib contrib-type="author">
<name>
<surname><![CDATA[Castedo Michel]]></surname>
<given-names><![CDATA[Leticia Victoria]]></given-names>
</name>
<xref ref-type="aff" rid="Aff"/>
</contrib>
</contrib-group>
<aff id="Af1">
<institution><![CDATA[,British Embassy  ]]></institution>
<addr-line><![CDATA[ ]]></addr-line>
<country>Bolivia</country>
</aff>
<aff id="Af2">
<institution><![CDATA[,University of Padova  ]]></institution>
<addr-line><![CDATA[ ]]></addr-line>
<country>Italy</country>
</aff>
<pub-date pub-type="pub">
<day>00</day>
<month>00</month>
<year>2025</year>
</pub-date>
<pub-date pub-type="epub">
<day>00</day>
<month>00</month>
<year>2025</year>
</pub-date>
<volume>25</volume>
<numero>2</numero>
<fpage>74</fpage>
<lpage>86</lpage>
<copyright-statement/>
<copyright-year/>
<self-uri xlink:href="http://www.scielo.org.bo/scielo.php?script=sci_arttext&amp;pid=S2518-44312025000200074&amp;lng=en&amp;nrm=iso"></self-uri><self-uri xlink:href="http://www.scielo.org.bo/scielo.php?script=sci_abstract&amp;pid=S2518-44312025000200074&amp;lng=en&amp;nrm=iso"></self-uri><self-uri xlink:href="http://www.scielo.org.bo/scielo.php?script=sci_pdf&amp;pid=S2518-44312025000200074&amp;lng=en&amp;nrm=iso"></self-uri><abstract abstract-type="short" xml:lang="en"><p><![CDATA[Abstract: Sustainable finance is consistently gaining relevance in financial markets across the world including Bolivia, a country where more than seventy percent of the population live in urban areas. Even though municipalities should be a top destination of sustainable funding to address the country&#8217;s most urgent development challenges, they have struggled to access the local financial market mainly due to their highly heterogeneous financial strength. To address this, the paper proposes a novel financing scheme that combines the notion of horizontal fiscal equalization - a redistributive approach to transfer resources from richer to poorer jurisdictions to mitigate size and development differences - and the principles of sustainable finance to face major development challenges associated with poverty, inequality and climate change vulnerability. To illustrate this, the paper estimates and characterizes the relative financial strength of Bolivia&#8217;s ten main municipalities and shows that three well-known investment vehicles amenable to the notion of horizontal fiscal equalization can be effectively used for channeling much needed sustainable funding to local governments. In effect, the proposed financing scheme could increase financial inclusion amongst Bolivian municipalities and channel much-needed funding to significantly enhance the country&#8217;s efforts to achieve its climate commitments and development goals.  JEL Classification: Q01, G1, G18, H63]]></p></abstract>
<abstract abstract-type="short" xml:lang="es"><p><![CDATA[Resumen: Las finanzas sostenibles están ganando relevancia de manera constante en los mercados financieros de todo el mundo, incluida Bolivia, un país en el que más del setenta por ciento de la población vive en zonas urbanas. Aunque los municipios deberían ser uno de los principales destinos de la financiación sostenible para abordar los retos de desarrollo más urgentes del país, han tenido dificultades para acceder al mercado financiero local, debido principalmente a su gran heterogeneidad en cuanto a solidez financiera. Para abordar esta situación, el documento propone un novedoso esquema de financiación que combina la noción de igualación fiscal horizontal -un enfoque redistributivo para transferir recursos de las jurisdicciones más ricas a las más pobres con el fin de mitigar las diferencias de tamaño y desarrollo- y los principios de las finanzas sostenibles para hacer frente a los principales retos de desarrollo asociados a la pobreza, la desigualdad y la vulnerabilidad al cambio climático. Para ilustrarlo, el documento estima y caracteriza la solidez financiera relativa de los diez principales municipios de Bolivia y muestra que tres conocidos vehículos de inversión susceptibles de la noción de igualación fiscal horizontal pueden utilizarse eficazmente para canalizar la tan necesaria financiación sostenible a los gobiernos locales. En efecto, el plan de financiación propuesto podría aumentar la inclusión financiera entre los municipios bolivianos y canalizar la financiación tan necesaria para mejorar significativamente los esfuerzos del país por cumplir sus compromisos climáticos y sus objetivos de desarrollo.]]></p></abstract>
<kwd-group>
<kwd lng="en"><![CDATA[sustainable finance]]></kwd>
<kwd lng="en"><![CDATA[fiscal equalization]]></kwd>
<kwd lng="en"><![CDATA[municipalities]]></kwd>
<kwd lng="en"><![CDATA[financial inclusion]]></kwd>
<kwd lng="es"><![CDATA[finanzas sostenibles]]></kwd>
<kwd lng="es"><![CDATA[igualación fiscal]]></kwd>
<kwd lng="es"><![CDATA[municipios]]></kwd>
</kwd-group>
</article-meta>
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