In such a structure, the upper tier (i.e. the regional government) would focus on the providing region-wide services that benefit the whole territory, are associated with both positive externalities and some redistribution, and which demonstrate economies of scale. Lower tiers (i.e. urban areas) would concentrate on local services that provide local benefits and may be more in line with their actual resource capacity (see Table 3.6) (Bird and Slack, 2008). Metropolitan Governance: Principles and Cases, Inter-American Development Bank, Washington, DC, and David Rockefeller Center for Latin American Studies, Harvard University, Cambridge, Massachusetts.