This article aims to offer a constructive vision of the main challenges faced by Latin American local governments from an essentially economic perspective. It addresses some problems that have remained entrenched for decades, such as the persistence of large inequalities in the region, institutional weakness, the needs for technical training and investment in fiscal management, and the urgency of improving the fiscal culture of our citizens. In addition, other more “novel” challenges are addressed, such as the management of environmental challenges, the digital revolution and its implications in terms of public management, and those linked to urbanization and agglomerations in large cities. To ensure success when facing this enormous host of social needs requires presenting an ambitious reform plan in order to strengthen both the fiscal capacity of governments and the fiscal effort of citizens.