Group proposal

The federative 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 which reaches an even greater dimension in the Brazilian case, given the problems raised by the existence of marked regional inequalities. When inequalities in the federation
are great, the decentralization of power, and the means necessary to exercise it, encounters limits dictated by the difference in situations encountered. While the richest regions can almost completely dispense with federal aid, the poorest depend on it to carry out their tasks satisfactorily. The federative balance therefore depends on the functioning of a system of intergovernmental relations, which promotes an adequate balance in the distribution of responsibilities and resources, and establishes a horizon of stability that makes government actions viable.