| Abstract: | Although there have been deep changes in the federation as aconsequence of redemocratization and decentralization, Brazilcontinues to exhibit profound imbalances among regions. Theseimbalances create contradictions and tensions in Brazilian federalism.The central problem addressed in this article is to identifythe main difficulties facing federalism, and to assess theirconsequences on the prospects of federalism should tensionscontinue unabated. Brazilian federalism has always been a meansof accommodating deep-rooted regional disparities. Althoughthere are political and fiscal mechanisms to offset some ofthe problems of regional disparities, such mechanisms have beeninsufficient to counteract a long history of uneven regionaldevelopment. Because of the country's inequalities, the capabilitiesof subnational governments to respond to Brazil's current demandsand agendas are highly uneven. |
