In this occasional paper prepared for UNDP, the authors review the changes in decentralization in Chile that have accompanied the changes in political regimes and some of their effects on various dimensions affecting the human condition. Section II provides an overview of the decentralization process, while Section III provides a more detailed discussion of the nature and extent of decentralization achieved, both under Pinochet and since, including changes in the system currently being instituted. Section IV assesses the qualitative and quantitative impact of these decentralization measures; Section V presents some conclusions.