Brazil

With the aim of understanding the place and role of municipalities in the Brazilian federation, this chapter begins with an overview of the country’s key political and economic features, after which it explores the historical development of local government under a federal system that alternates between periods of power centralisation and decentralisation. Municipalities’ legislative and operational responsibilities are defined in the Constitution, which as such circumscribes their governance role in the federation. However, increased responsibilities for service delivery have required increased revenue, not only from federal and state transfers but from improved exploitation of municipal tax bases. Despite their progress in expanding funding sources, municipalities still rely heavily on federal and state support, a situation that highlights tensions between financial dependence and political autonomy. A discussion of relations with other orders of government reveals the possibilities for, and difficulties of, cooperation, as well as shows the importance of local political dynamics and instruments of popular participation. The final section draws attention to the importance of the metropolitan regions and identifies emerging issues relating to municipalities in Brazil.