Federal balance and the system of intergovernmental relations play a dominant role in the efficiency and effectiveness of public policies. This is an issue that concerns all federations, but it takes on an even greater dimension in the Brazilian case, given the problems raised by the existence of marked regional inequalities. When inequalities in the federation...
While the decentralization of power, and the means necessary to exercise it, is vast, it encounters limits dictated by the differences in circumstances. While wealthier regions can almost entirely dispense with federal aid, poorer regions depend on it to adequately carry out their responsibilities. Federal balance, therefore, depends on the functioning of a system of intergovernmental relations that promotes an adequate balance in the distribution of responsibilities and resources, and establishes a horizon of stability that enables the functioning of government actions.
