Annotation World Bank Discussion Paper No. 357.Decentralization and democratization in the Latin America and the Caribbean region have produced a wave of innovations on the local government level--upgrading professional staffs, raising taxes and user fees, delivering better services, and mobilizing participation in public choice-making. This paper documents five cases of best practices at the local level, focusing on innovations in Mendoza, Argentina; Curitiba, Brazil; Cali, Colombia; Manizales, Colombia; and Tijuana, Mexico. A the central message of the paper is that by supporting creation and adoption of best practice, donors can enjoy a cost-effective impact in achieving the next stages of reform in the region, but that work must be done at the local level.