Reforming Institutions from Inside: Federalism and Inequality in Brazil

Some authors argue that the federal system in Brazil leads to economic inequality. Nevertheless, there are federations with low levels of inequality, such as Canada, Australia and Germany. Using the Brazilian case as an example, we argue that this can be partly explained by the rules of intergovernm...

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Main Author: Gabriel Cepaluni
Format: Article
Language:English
Published: Aarhus University 2015-02-01
Series:Brasiliana: Journal for Brazilian Studies
Online Access:https://tidsskrift.dk/bras/article/view/17082
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author Gabriel Cepaluni
author_facet Gabriel Cepaluni
author_sort Gabriel Cepaluni
collection DOAJ
description Some authors argue that the federal system in Brazil leads to economic inequality. Nevertheless, there are federations with low levels of inequality, such as Canada, Australia and Germany. Using the Brazilian case as an example, we argue that this can be partly explained by the rules of intergovernmental transfers and taxation of the federation. I propose a typological theory of inter-jurisdictional transfers: inequality reducing transfers; transfers that maintain the status quo or are ambiguous; and inequality producing transfers. Gradual changes in these federal rules allowed Brazil to cease being the country of growing levels of inequality of the 60s and 70s and to become a country that drastically reduced inequality in the 2000s. I emphasize that many intergovernmental transfer reforms, especially regarding taxation, are in need to keep Brazil on the same path.
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spelling doaj.art-bc15487f6b7a4d328e012bf2301ee3282022-12-22T03:58:24ZengAarhus UniversityBrasiliana: Journal for Brazilian Studies2245-43732015-02-013223526318666Reforming Institutions from Inside: Federalism and Inequality in BrazilGabriel Cepaluni0São Paulo State University (Unesp-Franca)Some authors argue that the federal system in Brazil leads to economic inequality. Nevertheless, there are federations with low levels of inequality, such as Canada, Australia and Germany. Using the Brazilian case as an example, we argue that this can be partly explained by the rules of intergovernmental transfers and taxation of the federation. I propose a typological theory of inter-jurisdictional transfers: inequality reducing transfers; transfers that maintain the status quo or are ambiguous; and inequality producing transfers. Gradual changes in these federal rules allowed Brazil to cease being the country of growing levels of inequality of the 60s and 70s and to become a country that drastically reduced inequality in the 2000s. I emphasize that many intergovernmental transfer reforms, especially regarding taxation, are in need to keep Brazil on the same path.https://tidsskrift.dk/bras/article/view/17082
spellingShingle Gabriel Cepaluni
Reforming Institutions from Inside: Federalism and Inequality in Brazil
Brasiliana: Journal for Brazilian Studies
title Reforming Institutions from Inside: Federalism and Inequality in Brazil
title_full Reforming Institutions from Inside: Federalism and Inequality in Brazil
title_fullStr Reforming Institutions from Inside: Federalism and Inequality in Brazil
title_full_unstemmed Reforming Institutions from Inside: Federalism and Inequality in Brazil
title_short Reforming Institutions from Inside: Federalism and Inequality in Brazil
title_sort reforming institutions from inside federalism and inequality in brazil
url https://tidsskrift.dk/bras/article/view/17082
work_keys_str_mv AT gabrielcepaluni reforminginstitutionsfrominsidefederalismandinequalityinbrazil