Instituto Fernand Braudel de Economia Mundial - Associado à FAAP

Ed. 24: Brazilian Federalism

Wrestling with states and municipalities

Author: Marcos J. Mendes | Published in 2000

Federalismo Brasileiro

Brazil is at war with itself in the battle to strengthen its public finances. Its federal system is weakened by ceaseless pressures on its resources by state and municipal governments that tax too little and spend too much in order to advance the careers of local politicians. This essay examines the causes of chronic fiscal deficits of Brazilian states and municipalities, focusing on the perverse incentives bred by the political system, and suggests ways to overcome this problem.


Related issues:

  1. Braudel Papers Federalism and Inflation
  2. Braudel Papers The Brazilian Concept of Money
  3. Braudel Papers Elastic Debts

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