GEOGRAPHICAL COVERAGE OF THE REGIONAL DEVELOPMENT POLICIES IN BRAZIL

Abstract

The aim of this work is to analyze the geographical coverage of the regional development policies adopted in Brazil. In particular, we evaluate to what extent the current legal landmark and the legislative proposals still in process focus on the regions that present aggregate indicators below the national average. We briefly discuss the concept of regional development policy and circumscribe the analysis to the exogenous policies implemented by the central government in subnational jurisdictions. The analysis focuses on the superintendences for regional development, the constitutional financing funds and the special economic zones such as the Manaus Free Trade Zone. We show that in spite of the absence of a constitutional or legal criterion to select priority regions, regional development policies currently adopted in Brazil tend to focus on the regions that present aggregate indicators below the national average. The analysis of the legislative proposals concerning regional development policies in Brazil indicates that the new initiatives focus on: i) the expansion of the geographical coverage of the superintendence for regional development of the Northeast (Sudene) towards the Southeastern region of Brazil; and ii) the creation of new special economic zones inspired in the Manaus Free Trade Zone. Data show that congressmen and senators have an incentive to try to benefit their voter bases, even if the potentially benefited regions present indicators above the national average. As a result, the geographical coverage of the regional development policies adopted in Brazil results not only from economic criteria applied by the executive power, but also from its relationship with the legislative power.