The mayors know the needs that the population has therefore its policies are vital to improve the quality of life of citizens.

Since Keynes demonstrated that fiscal and monetary policies were the main responsible of full employment until the paradigm shift monetarist theory developed by Milton Friedman, the academic literature has focused on studying the role of central governments to balance macro and little is taught about how to develop a country. Under the neoliberal state is taught that the market is the best resource manager so practically must be passive in this regard.

However, given the current thrust of the emerging economies World Bank has forecast that global growth in the coming decades will depend on the growth of these economies. But says that emerging economies must make structural changes and maintain a strong and growing domestic demand. Taking the example of 150 countries concluded that the measurement of wealth goes beyond the simple measurement of GDP and GDP should also include the natural and the “intangible wealth.”

Growth and economic development?

It should start by defining what is economic development, a concept commonly confused with economic growth. Economic growth is the annual GDP growth measured in percentage. Instead economic development is the raising of quality of life of the population. At this point it is clear that the “intangible wealth” to the World Bank are strong institutions, education, human skills, innovation and new technologies.

However, the professor of the UNAM Jose Silvestre Mendez, in his book Mexico’s economic problems, explained more understandable what is economic development:

1. Raising the level of education of the general population.
2. Growth in life expectancy.
3. Good health.
4. Have a home.
5. Real wage growth.
6. Enjoy a healthy environment.
7. Have utilities such as, drinking water, drainage, street lighting, security, etc.

Municipal actions to achieve economic development:

But generally, federal focus more economic growth to economic development leaving, so this important work to the communities. This is because at present, under the neoliberal regime, to that central governments have taken as its primary task the macroeconomic balance and let market forces regulate the entire economy.

Furthermore, according to the World Bank, countries such as Mexico, China and Brazil will boost domestic demand addition to structural changes. Therefore, the municipalities will play an increasingly important to developers and managers to be more direct economic development. For much of the municipal public works may focus on increasing economic development.

Examples of municipal public works

There are a number of municipal works to help improve the quality of life, for example;

1. Building forums.
2. The creation of parks and gardens.
3. The creation of sports facilities.
4. The creation of museums.
5. Creating theaters.
6. The creation of plants sewage treatment.
7. Eco tourism areas.
8. And many other works, such as hiring music teachers, drama, dance, painting.

With regard to public spaces should be a city, the World Bank has also concluded that violence is related to the number of public spaces. The lack of socialization, communication, lack of understanding, exchange of experiences, knowledge of others, it seems crucial part in the way violence. Large cities have isolated the individual. While in small communities still tend to be strong emotional bonds with members of their own community group produced a feeling in large cities the individual is isolated.

Thus, as can be seen, the municipalities can do much to lift the quality of life of a country, then the federal courts should pay more attention to the use of municipal public expenditure and indeed the national economic growth will depend largely how municipalities used their budget.

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