Federalism and regional interest intermediation in Brazilian public policies

Abstract

Brazil became a highly decentralized country following democratization and the 1988 Constitution. The consequences of decentralization at the federal level are quite clear: the federal government is facing ®nancial constraints and di culties in building governing coalitions, allowing the Presidents to govern and to implement public policies, especially those concerning ®scal control. At the level of the states, however, the results of decentralization are quite heterogeneous given the country's high degree of regional inequality. The article identi®es the cleavages and tensions surrounding federal±state relations, as well as the mutual dependency of the states and the federal government. It argues that the Brazilian experience of political and ®nancial decentralization has contributed to the prospects of democratic con- solidation and has forced the federal government to negotiate and compromise with sub- national governments the implementation of national policies. On the other hand, the Brazilian experience highlights the constraints of decentralization in countries with deep- rooted regional disparities. Furthermore, the ®nancial weakness of the federal government which has been brought about by decentralization and by ®scal control brings new tensions to the federal arrangements and to public policies.