As relações intergovernamentais no Brasil, longe de se caracterizarem como um fenômeno estático ou determinado unicamente pelo arcabouço formal/legal, têm revelado, desde a promulgação da Constituição de 1988, uma dinâmica variável aos contextos políticos do país, sendo pactuadas e repactuadas entre os níveis governamentais. Nesse processo, que pode ser observado em diferentes políticas públicas, e especialmente na assistência social, há aspectos descentralizadores e centralizadores, assim como uma combinação entre ambos, dependendo das agendas e preferências dos governantes que ocupam o centro do sistema político. Dessa forma, assim como as competências dos entes federativos são redesenhadas, aspectos como a autonomia para formular e implementar políticas públicas também são afetadas. Argumenta-se que esse processo é resultante do forte papel que o centro sempre possuiu na determinação das relações federativas no Brasil, que se moldam a partir dos seus interesses. A partir dessa premissa, o trabalho investiga a repactuação das relações intergovernamentais na implementação da política de assistência social sobre a influência de duas agendas políticas vigentes no governo federal: sob os governos de Fernando Henrique Cardoso, em que há a adoção de políticas de reajuste fiscal e de reformas descentralizantes que tornam o município o principal responsável pela formulação e implementação da política de assistência social; e sob os governos do presidente Lula, período orientado pela retomada do papel do Estado na promoção do desenvolvimento econômico e social, em que as políticas de proteção social não contributivas ganham espaço fundamental. Neste período, em que tem origem o Sistema Único da Assistência Social, é possível observar uma nova relação entre os níveis governamentais na implementação da assistência social, havendo uma maior coordenação da política em nível federal e o reforço do papel dos municípios como executores de uma política formulada nacionalmente. A partir da análise, busca-se contribuir com as interpretações que entendem a dinâmica da federação brasileira como algo mais complexo do que a clássica forma dicotômica, centralização versus descentralização, sístole versus diástole, argumentando que tais formatos podem conviver em uma única política pública a depender das agendas e preferências dos governantes. Do ponto de vista metodológico, o trabalho parte da observação dos processos de formulação e implementação da assistência em quatro municípios da Região Metropolitana de Porto Alegre: Alvorada, Canoas, São Leopoldo e Viamão no interregno de 1994 a 2010. / Intergovernmental relations in Brazil, far from being characterized as a static phenomenon or determined solely by formal/legal framework, have been revealed, since the promulgation of the 1988 Constitution, a variable dynamic to the political contexts of the country, being agreed between government levels. In this process can be observed aspects decentralizing and re-centering in different public policy, and especially in social assistance, as well as a combination of both, depending on the trajectories of the policies and agendas of the rulers who occupy the executive center of the political system. Thus, as the responsibilities of governmental entities are redrawn, aspects such as the autonomy to formulate and implement public policies are also affected. It is argued that this process results from the strong role that the center has always possessed in the determination of the federative relations in Brazil, which are molded from its interests. From this premise, the work investigates the renegotiation of intergovernmental relations in the implementation of the social assistance policy on the influence of two political agendas of the federal government: the government of Fernando Henrique Cardoso, in which there is the adoption of policies of fiscal adjustment and decentralizing reforms, making the municipality the primary responsible for the formulation and implementation of social assistance policy; and governments of President Lula, period which originates the Unified System of the Social Assistance, driven by a political agenda that retakes the role of the State in promoting economic and social development. In this period it is possible to observe a new relationship between the government levels in the implementation of social assistance, where there is greater coordination of policy at the federal level, being the municipalities the executors of a policy formulated nationwide. From the analysis it is looking up to contribute with the interpretations that understand the dynamics of the Brazilian Federation as something more complex than commuting movements that alternate periods of centralizing and decentralizing, and furthermore, that these formats do not possess intrinsic qualities. From the methodological point of view, the work starts from the observation of the processes of formulation and implementation of the Assistance in four municipalities of the Metropolitan Region of Porto Alegre: Canoas, São Leopoldo, Alvorada and Viamão in the interregnum from 1994 to 2010.

O trabalho concentra-se sobre o critério do valor adicionado fiscal na repartição do ICMS, com o objetivo de verificar sua adequação como mecanismo de provisão de recursos financeiros a Municípios, no contexto do federalismo fiscal brasileiro. Mediante análise teórica, de dados de distribuição e legislação referente à repartição e ao ICMS, identificamos que o valor adicionado fiscal é gerador de enormes desigualdades de tratamento entre Municípios de porte equivalente e de oscilações brutais de valores de transferência de um para outro ano, mas, sobretudo, que é juridicamente inadequado à multiplicidade de locais de ocorrência de fatos geradores e a heterogeneidade do imposto que pretende repartir. Não atinge, assim, o propósito de medir a adição de valor em um território, nem o de conferir aos Municípios receitas em montante similar ao potencial de arrecadação de um imposto sobre valor adicionado municipal depurado dos efeitos de imunidades, isenções, diferimentos e substituições tributárias, que justificou sua criação. A permanência da utilização do critério do valor adicionado por décadas é apontada no trabalho como resultante de acomodações e ajustes institucionais, característicos de dependência de trajetória (path dependence), que, desrespeitando os limites jurídicos de regulamentação, disfarçam a inadequação do critério e perpetuam as desigualdades e instabilidades dele advindas. Justifica-se, assim, que atenções sejam voltadas à análise de alternativas à repartição do ICMS por outros meios que não o VAF e o aperfeiçoamento de seus mecanismos de regulação, caso permaneça sendo utilizado. / The Added Value Criteria (VAF) is used in Brazil for purposes of ICMS (A State tax on circulation of goods, communication and interstate and intercity transportation services) revenue sharing to cities. The data on how the VAT based tax sharing occurs shows that VAT is a source of inequalities in resource distribution to cities of equivalent population and oscillations in the amounts received by a given city along the years. Moreover and as the central hypothesis of this thesis, VAF, as defined in Brazilian legislation, is not suitable to the complexity of situations and places of occurrence of ICMS taxable events nor to the effects of ICMS on prices, being, thus, unable to measure the value added in each city territory and to protect the revenue sharing from the effects of ICMS exemptions, constitutional immunities, deferrals and tax substitutions. Being so, the VAT regulations, do not recreate the potential of a municipal VAT, falling short in accomplishing the purposes it was created for. In spite of its defects, VAT remains in use decades after its creation as a result of accommodations and institutional adjustments that can be explained by a path dependence trajectory that was, and still, is able to disguise its chronic inadequacies and to perpetuate the inequalities and instabilities arising out of such distribution criteria. Our conclusions on VAF justify the study of other alternatives for the ICMS revenue sharing, as well as attempts to improve the quality of VAT regulations.

As relações intergovernamentais no Brasil, longe de se caracterizarem como um fenômeno estático ou determinado unicamente pelo arcabouço formal/legal, têm revelado, desde a promulgação da Constituição de 1988, uma dinâmica variável aos contextos políticos do país, sendo pactuadas e repactuadas entre os níveis governamentais. Nesse processo, que pode ser observado em diferentes políticas públicas, e especialmente na assistência social, há aspectos descentralizadores e centralizadores, assim como uma combinação entre ambos, dependendo das agendas e preferências dos governantes que ocupam o centro do sistema político. Dessa forma, assim como as competências dos entes federativos são redesenhadas, aspectos como a autonomia para formular e implementar políticas públicas também são afetadas. Argumenta-se que esse processo é resultante do forte papel que o centro sempre possuiu na determinação das relações federativas no Brasil, que se moldam a partir dos seus interesses. A partir dessa premissa, o trabalho investiga a repactuação das relações intergovernamentais na implementação da política de assistência social sobre a influência de duas agendas políticas vigentes no governo federal: sob os governos de Fernando Henrique Cardoso, em que há a adoção de políticas de reajuste fiscal e de reformas descentralizantes que tornam o município o principal responsável pela formulação e implementação da política de assistência social; e sob os governos do presidente Lula, período orientado pela retomada do papel do Estado na promoção do desenvolvimento econômico e social, em que as políticas de proteção social não contributivas ganham espaço fundamental. Neste período, em que tem origem o Sistema Único da Assistência Social, é possível observar uma nova relação entre os níveis governamentais na implementação da assistência social, havendo uma maior coordenação da política em nível federal e o reforço do papel dos municípios como executores de uma política formulada nacionalmente. A partir da análise, busca-se contribuir com as interpretações que entendem a dinâmica da federação brasileira como algo mais complexo do que a clássica forma dicotômica, centralização versus descentralização, sístole versus diástole, argumentando que tais formatos podem conviver em uma única política pública a depender das agendas e preferências dos governantes. Do ponto de vista metodológico, o trabalho parte da observação dos processos de formulação e implementação da assistência em quatro municípios da Região Metropolitana de Porto Alegre: Alvorada, Canoas, São Leopoldo e Viamão no interregno de 1994 a 2010. / Intergovernmental relations in Brazil, far from being characterized as a static phenomenon or determined solely by formal/legal framework, have been revealed, since the promulgation of the 1988 Constitution, a variable dynamic to the political contexts of the country, being agreed between government levels. In this process can be observed aspects decentralizing and re-centering in different public policy, and especially in social assistance, as well as a combination of both, depending on the trajectories of the policies and agendas of the rulers who occupy the executive center of the political system. Thus, as the responsibilities of governmental entities are redrawn, aspects such as the autonomy to formulate and implement public policies are also affected. It is argued that this process results from the strong role that the center has always possessed in the determination of the federative relations in Brazil, which are molded from its interests. From this premise, the work investigates the renegotiation of intergovernmental relations in the implementation of the social assistance policy on the influence of two political agendas of the federal government: the government of Fernando Henrique Cardoso, in which there is the adoption of policies of fiscal adjustment and decentralizing reforms, making the municipality the primary responsible for the formulation and implementation of social assistance policy; and governments of President Lula, period which originates the Unified System of the Social Assistance, driven by a political agenda that retakes the role of the State in promoting economic and social development. In this period it is possible to observe a new relationship between the government levels in the implementation of social assistance, where there is greater coordination of policy at the federal level, being the municipalities the executors of a policy formulated nationwide. From the analysis it is looking up to contribute with the interpretations that understand the dynamics of the Brazilian Federation as something more complex than commuting movements that alternate periods of centralizing and decentralizing, and furthermore, that these formats do not possess intrinsic qualities. From the methodological point of view, the work starts from the observation of the processes of formulation and implementation of the Assistance in four municipalities of the Metropolitan Region of Porto Alegre: Canoas, São Leopoldo, Alvorada and Viamão in the interregnum from 1994 to 2010.

Submitted by Geyciane Santos (geyciane_thamires@hotmail.com) on 2015-10-27T15:13:49Z No. of bitstreams: 1 Dissertação - Júnior César Brasil de Moraes.pdf: 2181277 bytes, checksum: 0ff75bf664d78afd9723eb2c349a3fbb (MD5) / Approved for entry into archive by Divisão de Documentação/BC Biblioteca Central (ddbc@ufam.edu.br) on 2015-10-27T20:13:25Z (GMT) No. of bitstreams: 1 Dissertação - Júnior César Brasil de Moraes.pdf: 2181277 bytes, checksum: 0ff75bf664d78afd9723eb2c349a3fbb (MD5) / Approved for entry into archive by Divisão de Documentação/BC Biblioteca Central (ddbc@ufam.edu.br) on 2015-10-27T20:17:31Z (GMT) No. of bitstreams: 1 Dissertação - Júnior César Brasil de Moraes.pdf: 2181277 bytes, checksum: 0ff75bf664d78afd9723eb2c349a3fbb (MD5) / Made available in DSpace on 2015-10-27T20:17:31Z (GMT). No. of bitstreams: 1 Dissertação - Júnior César Brasil de Moraes.pdf: 2181277 bytes, checksum: 0ff75bf664d78afd9723eb2c349a3fbb (MD5) Previous issue date: 2014-05-29 / CAPES - Coordenação de Aperfeiçoamento de Pessoal de Nível Superior / The work is an exploratory case study. The overall objective was to analyze the distribution of quota-share of ICMS of municipalities in the State of Amazonas during the 2005-2010 period. The quota-share of ICMS is the biggest transfer of resources from the State of Amazonas to its municipalities, representing about 30 % of their budget revenue. This fact, coupled with incipient economy of the Amazonas interior, indicates that the quota-share of ICMS is an important source of budget revenue of municipal entities. The transfer value assigned to each municipality depends on apportionment based on devolutions and redistributive criteria. Preliminary research suggests the existence of distortions in assessment, worsening the social and economic inequalities in Amazonas municipalities compared with the state capital. Applying documental research and checklist, the distribution model of the devolution installments (added value) and redistributive installments adopted by Amazonas was evaluated. Also, reliability tests (Student's t test) and statistical models (regression and panel data) were applied to examine the variables and their relationships, pointing out possible distortions. The results demonstrate that there are material misstatements in the amounts received by the municipalities of quota-share of ICMS in relation to devolution and redistributive transfer principles. Also, significant losses were identified for some municipalities with the implementation of the current model. Finally, we propose a distribution model based on economic criteria and devolutive criteria, added value, geographic, social redistributive, HDI, population and territory, appraised as the most appropriate for the socio-economic reality of Amazonas. / O trabalho é um estudo de caso exploratório. O objetivo geral foi analisar a distribuição da cota-parte do ICMS dos municípios do Amazonas no período de 2005 a 2010. A cota-parte do ICMS é a maior transferência de recursos do estado para os municípios do Amazonas, representando cerca de 30% das receitas orçamentárias destes. Esse fato, aliado à incipiente economia do interior do estado, aponta a cota-parte do ICMS como importante fonte de receita orçamentária dos entes municipais. O valor da transferência atribuído a cada município depende de rateio baseado em critérios devolutivos e redistributivos. Pesquisas preliminares sugerem a existência de distorções no rateio, contribuindo para agravar as desigualdades sociais e econômicas registradas no Amazonas, quando comparados os municípios do interior com a capital. Avaliou-se, por meio de pesquisa documental e checklist, o modelo de distribuição das parcelas devolutivas (valor adicionado) e redistributivas adotado pelo Amazonas. Também, usaram-se testes de confiabilidade (Teste t de Student) e modelos estatísticos (regressão e dados em painel) para examinar as variáveis e suas relações, apontando possíveis distorções. Os resultados encontrados demonstram que há distorções relevantes nos valores recebidos pelos municípios da cota-parte do ICMS, em relação ao princípio devolutivo e redistributivo da transferência. Também registraram-se prejuízos significativos para alguns municípios com a aplicação do atual modelo. Por fim, propõe-se um modelo de distribuição baseado em critério econômico e devolutivo, valor adicionado, e redistributivo, baseado no IDH, população e extensão territorial, apontado como mais adequado à realidade socioeconômica do Amazonas.

A concepção tradicional de federação remete à possibilidade de uma melhor organização do Estado, proporcionando-lhe maior desempenho na execução da atividade financeira para satisfazer as necessidades públicas em níveis mais eficientes. As estruturas federativas existentes no mundo, porém, apresentam diferenças entre si e vários são os elementos que contribuem para essa ocorrência, motivo pelo qual não se pode conceber um modelo único de federação, imune a deficiências e problemas. Um Estado federado, dependendo do padrão de federação que adote (mais descentralizado ou menos descentralizado, por exemplo), pode não ser capaz de solucionar questões de vital interesse à sociedade. Na presente tese de doutorado, o autor analisa as características da federação brasileira e procura perscrutar se existe relação entre a estrutura do federalismo fiscal adotada no Brasil e a ocorrência de desvios de recursos públicos, dentre os quais os deflagrados por atos de corrupção. A preocupação contida no estudo não é apenas a de investigar essa relação, mas a de avaliar suas possíveis causas, analisando de forma criteriosa os níveis de descentralização presentes na federação e o grau de autonomia dos entes federados. No primeiro capítulo são discutidos o conceito, características e classificação dos Estados federais, a importância da federação para a atividade financeira estatal, os princípios do federalismo fiscal e as funções fiscais alocativa, distributiva e estabilizadora. A investigação sobre a possibilidade da existência de vínculo entre o desvio de recursos e o tipo de estrutura do federalismo fiscal é objeto de análise no segundo capítulo, no qual também serão expostas definições e características de condutas que tendem a provocar o mencionado transviamento, tais como o rent-seeking (comportamento caçador de renda), o patrimonialismo, o clientelismo, o coronelismo e a corrupção. O terceiro capítulo cuida da análise do arcabouço do federalismo fiscal brasileiro e procura examinar se os níveis de descentralização presentes no país são adequados para uma perfeita relação entre os entes subnacionais e o governo central, bem como se essa estrutura impede ou estimula as ocorrências de desvios de recursos públicos. No quarto capítulo, as hipóteses contidas nos capítulos anteriores são demonstradas por meio da análise do processo orçamentário federal (mais especificamente em relação às consequências advindas da elaboração da lei orçamentária anual) e das transferências intergovernamentais no Brasil. / The traditional conception of a federation leads us to the possibility of a better organized Government, capable of satisfactorily performing the financial activity in order to meet the public needs at more efficient levels. However, the federative structures existing worldwide today are quite different from each other and various are the elements contributing to such occurrence and this is why we cannot conceive one single federation model unaffected by deficiencies and problems. A federate Union, depending on the federation model adopted thereby (either a more or less decentralized one, for instance), may be unable to solve issues of vital interest to the society as a whole. In this dissertation, the author analyzes the characteristics of the Brazilian federation and seeks to scrutinize whether there is a relation between the fiscal federalism structure adopted in Brazil and the occurrence of deviation of public funds, including those triggered by corruption acts. Rather than simply investigating such relation, this dissertation is concerned with evaluating the possible causes for deviation of public funds, minutely examining the levels of decentralization present in the federation and the degree of autonomy among the federated entities. In chapter one, the author discusses the concept, characteristics and classification of the federal states, the importance of the federation for the financial activity performed by the Government, the principles of fiscal federalism and the allocable, distributive and stabilizing fiscal functions. Whether there is a connection between the deviation of funds and the type of structure of fiscal federalism is investigated in chapter two, where definitions and characteristics of conducts prone to cause the mentioned deviation are expounded by the author, such as rent-seeking, patrimonialism, clientelism, coronelismo and corruption. In chapter three, the author analyzes the framework of Brazilian fiscal federalism and examines whether the levels of decentralization existing in Brazil are proper for a perfect relation between the subnational entities and the central Government, as well as whether such structure either impedes or otherwise fosters the occurrences of public fund deviation. Chapter three demonstrates the hypotheses contained in the previous chapters by means of an analysis of the federal budgetary process (more specifically in relation to the consequences derived from preparation of the annual budgetary law) and intergovernmental transfers in Brazil.

Les interdépendances poussent les États fédéraux à coordonner leurs politiques publiques tout en limitant les conflits potentiels, ce qui consiste souvent en un défi important. Dans plusieurs pays, cette coordination s’effectue principalement au sein d’institutions intergouvernementales, comme les conseils, forums ou agences. Ces mécanismes permettent notamment aux gouvernements de s’entendre sur des priorités communes et d’harmoniser leurs politiques publiques. Au Canada, par contre, les institutions intergouvernementales sont souvent vues comme étant peu efficaces, ce qui force les gouvernements à recourir à des réseaux informels d’acteurs. Cette thèse examine la complémentarité des institutions formelles et des relations informelles entre fonctionnaires et ses effets sur la coordination des politiques publiques au Canada. Pour ce faire, trois études se penchent sur diverses variables politiques et institutionnelles pour démontrer que les fonctionnaires ont une marge de manœuvre importante dans la mise en place des politiques intergouvernementales, et que, par conséquent la politisation joue un rôle minime dans le cadre des relations intergouvernementales canadiennes. La première étude porte sur l’incidence de la partisannerie politique sur la participation aux activités intergouvernementales. Elle explore le cas du Québec, où se sont succédés au pouvoir des partis nationalistes et fédéralistes. Le rôle de la partisannerie entre 1970 et 2015 est analysé à l’aide de méthodes mixtes : une analyse de contenu de communiqués intergouvernementaux, des régressions temporelles et des entretiens semi-dirigés menés auprès des fonctionnaires provinciaux. Les résultats montrent que le parti au pouvoir, qu’il soit nationaliste ou fédéraliste, a peu ou pas d’effet sur la participation de la province aux relations intergouvernementales. Plutôt, il est argumenté que les activités intergouvernementales sont principalement conduites par des fonctionnaires pour qui les relations ne sont pas politisées. Ainsi, le Québec participe systématiquement aux discussions intergouvernementales et signe beaucoup plus d’ententes que ce qui est généralement présumé. La deuxième étude vérifie si l’institutionnalisation des mécanismes intergouvernementaux a une réelle influence sur la coordination politique. Après l’analyse de 39 forums sectoriels et des régressions multiniveaux, la recherche ne trouve aucune preuve de l’effet de l’institutionnalisation. Plutôt, l’effet des institutions formelles est limité par la grande importance des réseaux informels de fonctionnaires dans la mise en œuvre des politiques intergouvernementales. De plus, il ressort que les secteurs techniques produisent généralement plus de coordination que les secteurs davantage politisés. La dernière étude examine la réactivité des gouvernements fédéraux et provinciaux aux rencontres intergouvernementales lorsqu’ils définissent leurs priorités politiques. L’analyse se base sur une comparaison longitudinale des rencontres ministérielles avec les priorités politiques mentionnées dans les discours du Trône fédéraux et provinciaux entre 1969 et 2009. Les résultats montrent que plus les ministres d’un secteur se rencontrent, plus l’attention accordée à ce secteur par les gouvernements est grande, confirmant ainsi l’importance des relations intergouvernementales au Canada. Ces résultats tiennent également compte de l’opinion publique, une variable longtemps reconnue comme influençant l’attention politique aux enjeux. / Policy interdependencies create an important challenge for federal states in that the latter must coordinate policies while mitigating possible conflicts. In many countries, this is done through intergovernmental institutions, such as councils, forums or agencies. These venues provide a means for constituent units to negotiate common priorities and harmonize policies. However, Canadian intergovernmental mechanisms are often seen as weakly institutionalized, meaning governments need to rely on informal networks of actors to achieve compromises. This dissertation examines the role of the interaction between formal institutions and informal relations between bureaucratic agents in shaping policy coordination in Canada. Through three studies that examine the effect of different political and institutional variables on coordination, it is argued that public servants exercise important discretion when implementing intergovernmental policy, thus minimizing the effect of politicization in Canadian intergovernmental relations. The first study focuses on partisanship as a relevant factor in explaining intergovernmental activity in Canada. It explores the case of Quebec, which has been governed by alternating nationalist and federalist parties. The role of partisanship in relation to the province’s intergovernmental activity from 1970 to 2015 is assessed through mixed methods: a content analysis of joint press releases, a Poisson time-series regression analysis and qualitative interviews with intergovernmental officials. The findings show that the party in power has little to no effect on the province’s participation in IGR. Instead, public servants, whose relations are not politicized, are the primary actors partaking in intergovernmental activity. As a result, Quebec systematically participates in IGR discussions and signs a larger amount of agreements than commonly thought. The second study examines whether the institutionalization of intergovernmental arrangements influences policy coordination. Through a study of 39 Canadian sectoral forums and the use of a multi-level regression analysis, it finds no empirical evidence to support this claim. Instead, it argues that informal networks of officials are where most intergovernmental activity occurs, thereby limiting the effect of formal institutions. This finding is reinforced by the fact that technical sectors typically produce more coordination than sectors that are prone to politicization. The last study investigates the responsiveness of federal and provincial governments to intergovernmental meetings when defining their policy priorities. The analysis is based on a longitudinal comparison of ministerial meetings with issue priorities mentioned in federal and provincial Speeches from the Throne over the period of 1969 to 2009. The results show that the more often ministers in a given policy domain meet, the more attention a government gives to that sector, thus confirming the importance of intergovernmental relations in Canada. These results hold even when controlling for the effect of public opinion, a known driver of policy attention to issues.

This thesis consists of four self-contained papers on job turnover, productivity and state- local finance. Paper [I] deals with the determinants of the rate of job turnover defined as the change in distribution of employment between and within industries in Swedish manufacturing. The rate of inter-industry job turnover is driven by the dispersion of profit changes among industries. Shifts in international competitiveness among industries seem to play a central role in the explanation of this pattern. The rate of intra-industry job turnover has been higher in industries with many small plants, low profit margins and high import penetration. Paper [II] analyzes the impact of openness on total factor productivity (TFP) growth. Using Swedish industry level data the results show that economically integrated industries tend to be more engaged in research and development (R&D) and have more entry and exit activity than other industries. The domestic R&D intensity does not contribute to the TFP growth rate. Instead, the results imply that openness to international markets, which helps facilitate technology spillovers, has a significant impact on the growth rate. There is also some evidence suggesting that producers exiting the market are less productive, implying that such exits will increase the average productivity of the industry concerned. The purpose of Paper [III] is to design and implement a test of whether the external effect from tax base sharing among local and regional governments is internalized via the intergovernmental transfer system. The test is based on the observation that if the external effect is internalized, an increase in the income tax rate at one level of government will induce the other level to reduce its income tax rate by the corresponding amount, leaving the effective tax rate unchanged. By using panel data for the Swedish local and regional public sectors, we estimate the reaction function for the local income tax rate. The results imply that an increase in the regional income tax rate induces the municipalities in the region to decrease their income tax rates. In addition, we are able to reject the null hypothesis that the external effect from tax base sharing is internalized. Paper [IV] concerns risk-sharing, in terms of how the central government smooths personal income among municipalities via the tax and transfer systems. Using Swedish panel data, the results show that the national tax and transfer systems mitigate an adverse shock to income of one krona so that disposable income falls by 67 öre, on average. However, there are large differences across regions, where the effect on disposable income varies between 32 and 78 öre in the krona. / digitalisering@umu

Masters in Public Administration - MPA / Can a country function without a legislative framework able to inform decisionmaking processes taken at different spheres of government? To what extent would actions conducted at various spheres of government be efficiently coordinated and informed by appropriate channels of constitutional provisions and legislative amendments to consolidate financial and intergovernmental fiscal relations policy-making tools for the realization of an efficient local developmental state? Answers to the above mentioned two questions refer to normative fiscal policy principles and prescriptive instruments of intergovernmental fiscal transfer design, whose orientation suggests better ways of framing sound and coherent programs and interventions that strengthen cooperative synergy and transfer knowledge of experience gained in empirical investigations and various South African environments of higher academic learning. Growing evidence acknowledges South Africa as one of the young democratic countries that has been going through a period of transition over the past three years as it changes its system of public finance from a structure suited to the old apartheid system to one consistent with the new South African Constitutional dispensation. While the former system was highly centralized, the newconstitution makes a clear commitment to municipal governments as important providers of government services, with greater tax and spending powers. Even as local autonomy has been substantially increased, there remains uncertainty as to the most appropriate design of a system of intergovernmental fiscal grants to metropolitan areas and townships. This study analyses this situation and further develops a generic design for intergovernmental transfers and its suitability to the realities of South African municipalities on the ground within the framework of Cooperative Government. This study concludes that fiscal management, as a cross-cutting discipline, is a powerful instrument for government’s revenue sources at the national, provincial and local government levels. Financial management should be regarded as a co-coordinating mechanism managing government’s expenditure and catalyzing sound financial relationship for an efficient management in the country, thus allowing government to budget effectively for the delivery of goods and services in order to attain the constitutional mandate of a developmental state. / South Africa

Philosophiae Doctor - PhD / In this thesis I argue that by taking account of economic disparities and backlogs in intergovernmental infrastructure grants to municipalities in South Africa, government will effectively meet its constitutional obligation to equitably allocate infrastructure grants to local government according to the principles of parity, proportionality and priority (Young, 1994). Municipalities will thus be able to provide basic services to households in keeping with the Bill of Rights of the Constitution of South Africa (1996). Adapting the Petchey et al (2004) provincial capital expenditure grant model to the provision of municipal services using secondary data and information from local municipalities in the Cape Winelands District, I evaluate whether government’s existing municipal grants are allocated equitably and, whether they account for disparities that differentiate municipalities from each other. The findings from my analysis show that the current approach to financing municipal infrastructure does not sufficiently account for disparities and thus, undermines the requirement for equitability, adequacy and efficiency of intergovernmental allocations. Consequently, the right of citizens to basic municipal services is compromised and the macroeconomic structure is weakened. Furthermore the institutional arrangements for local government autonomy is undermined because municipalities cannot ensure stability, predictability, flexibility and economic efficiency of infrastructure budgets. As municipalities receive part of their finance from national government through infrastructure grants, I used data from five local municipalities to examine the extent to which there is equitability and efficiency in the way this finance is allocated. To this end I constructed and applied a composite disparity index for each municipality to my adapted municipal infrastructure grant model to analyze and observe the impact of economic disparities in grant allocations. The findings show that a grant model that accounts for economic disparities satisfies the constitutional, economic and institutional considerations that should inform municipal grant allocation decisions. I conclude the thesis by highlighting the limitations and possibilities of using a municipal infrastructure grant model that accounts for economic disparities and, I propose some recommendations for applying such a model in South Africa.

The study emanates from the constitutional imperatives with regard to the role of local government in community development. The notion of cooperative governance is envisaged in the South African Constitution which stipulates that all spheres of government must adhere to the principles of cooperative government and must conduct their activities within the parameters prescribed by the Constitution. The purpose is to support and strengthen the capacity of the local governments to manage their own affairs and to perform their functions. The basic values and principles governing public administration entail that: it must be broadly representative of the people of South Africa in order to redress the imbalances. The existing gaps in the legislation on decision making power at the local level of the municipality, be it in a ward committee or sub council, have not been adequately addressed in the post 1994 democratic dispensation. It is in this context that this study seeks to address these gaps and obstacles, and contribute to the design and development of a decentralized cooperative governance model, specifically to the six metropolitan municipalities and also provide a basis for further research. The findings of the research could be adapted as a national policy in the empowering of municipalities through the dispersal of democratic power which is an essential ingredient of inclusive governance. Based on a case study of six metropolitan municipalities, the research is intended to contribute to the development of empirically grounded; praxis and practical guideline in decentralized cooperative governance which can be adopted and institutionalized in public administration. It is believed that a study of decentralized cooperative governance adds value in that it seeks to link decentralized power and local development. Rather than civil society organisations being seen as adversarial, a creative partnership with the state in local development is crucial. This political assimilation is critical in the construction of democracy through fusing the substantive values of a political culture with the procedural requisites of democratic accountability. This serves to fragment and disperse political power and maintain a system of checks and balances with regard to the exercise of governmental power. The capacity for innovation, flexibility and change can be enhanced at the local level, and it is a cliché that local decision making is viewed as more democratic in contrast to central, top-down decision-making processes. A syncretistic model for local government based on the political adaptation of political and inclusive decentralisation is outlined.