Intergovernmental Fiscal Cooperation: International Experiences and Possible Lessons for Brazil
To a large extent, policy outcomes are shaped by governance, including institutional arrangements and forums for cooperation among and within different layers of government. In turn, the effectiveness of intergovernmental fiscal cooperation (IFC) is affected by economic, sociopolitical, and institutional factors, including constitutional provisions and power balances among different levels of government. On the basis of a review of large federations, the authors propose options to strengthen IFC in Brazil. In particular, the effectiveness of IFC could be enhanced in Brazil by establishing forums for vertical cooperation between the states and the federal government, and for horizontal cooperation among states.