Book contents
- Frontmatter
- Contents
- List of Contributors
- Acknowledgments
- 1 Analyzing Federalism: Stylized Models and the Political Economy Reality
- 2 Federalism in Argentina and the Reforms of the 1990s
- 3 Australia: Central Fiscal Dominance, Collaborative Federalism, and Economic Reform
- 4 The Brazilian Federation: Facts, Challenges, and Perspectives
- 5 Changing with the Times: Success, Failure, and Inertia in Canadian Federal Arrangements, 1945–2002
- 6 Fiscal Federalism and Economic Reform in China
- 7 Indian Federalism, Economic Reform, and Globalization
- 8 Mexico's Decentralization at a Crossroads
- 9 Transfer Dependence and Regional Disparities in Nigerian Federalism
- 10 Conclusions and Lessons for Further Study
- Index
4 - The Brazilian Federation: Facts, Challenges, and Perspectives
Published online by Cambridge University Press: 25 July 2009
- Frontmatter
- Contents
- List of Contributors
- Acknowledgments
- 1 Analyzing Federalism: Stylized Models and the Political Economy Reality
- 2 Federalism in Argentina and the Reforms of the 1990s
- 3 Australia: Central Fiscal Dominance, Collaborative Federalism, and Economic Reform
- 4 The Brazilian Federation: Facts, Challenges, and Perspectives
- 5 Changing with the Times: Success, Failure, and Inertia in Canadian Federal Arrangements, 1945–2002
- 6 Fiscal Federalism and Economic Reform in China
- 7 Indian Federalism, Economic Reform, and Globalization
- 8 Mexico's Decentralization at a Crossroads
- 9 Transfer Dependence and Regional Disparities in Nigerian Federalism
- 10 Conclusions and Lessons for Further Study
- Index
Summary
INTRODUCTION
Following decades of protectionism and a powerful interventionist state, the Brazilian economy suddenly exposed itself to external competition and went through a rapid process of privatization. The institutional reforms implemented in the 1990s helped stabilize the economy and create a friendlier environment for attracting investments and fostering growth. In spite of the still-looming uncertainties regarding the prospects for reconciling sustainable development and macroeconomic stability, the results achieved in the past decade are on balance positive.
The federal regime affected and was affected by the process of moving from a closed, state-controlled economy to an open, privately run market. Indeed, the greater the degree of subnational governments' interests in proposed reforms, the more difficult it became to implement the reforms. In some cases, subnational governments had to be lured into accepting changes that reduced state and local autonomy. The power of state and local governments in the National Parliament created the necessity for bargaining over compensation for reduced autonomy or financial losses even in cases where subnational governments did not have direct policy oversight.
Of the reforms that topped the agenda for modernizing the Brazilian economy during the 1990s, three deserve special attention: privatization, public employment, and social security and taxation. Given the central role of healthy public finances in the strategy for macroeconomic stability, these reforms were the object of intense debate and much disagreement. Of these, privatization has been the only successful reform so far.
- Type
- Chapter
- Information
- Federalism and Economic ReformInternational Perspectives, pp. 143 - 188Publisher: Cambridge University PressPrint publication year: 2006
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