Which law in Bolivia is known for decentralizing power to the local level in 1994?

Popular Participation Law

The correct answer is Option 1 - Popular Participation Law

The Popular Participation Law of 1994 decentralized power to the local level in Bolivia, allowing for the popular election of mayors, dividing the country into municipalities, and establishing a system of automatic fiscal transfers to these municipalities.

Bolivia is frequently cited as one of the most successful cases of democratic decentralisation in Latin America. In 1994, the Popular Participation Law decentralised power to the local level, allowing for the popular election of mayors, dividing the country into municipalities, and crafting a system of automatic fiscal transfers to the new municipalities. Bolivia is divided into 314 municipal governments. These governments in Bolivia are headed by popularly-elected mayors (presidente municipal) and a municipal council (cabildo). Local elections occur nationwide every five years.