Many people think changes are always good. However, sometimes it is not so. Before making a change, one must ask what kind of change is it and how it will affect status quo. This paper tries to show how an institutional change that has been wrongly conceived could lead to a worse situation. The Venezuelan experience studied here is a ?show-window? of contradictory decentralization process, in which sub-national governments lack the faculties to generate their own income, and moreover, in which oil income continues to be almost the only source of governmental financing.