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OECD Territorial Reviews: Brazil 2013

image of OECD Territorial Reviews: Brazil 2013

This review, which draws on data and comparative perspectives from OECD countries, highlights challenges that Brazil will need to tackle, including those related to fiscal arrangements among the sub-national governments, building administrative capacity at the local level, and fostering cross-sectoral co-ordination in federal programming

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Regional trends and development in Brazil

This chapter examines the regional dimension in Brazil, measuring sub-national trends, benchmarking the performance of Brazilian regions with that of other OECD regions, examining links between the regional and aggregate dimension, and finally, assessing the key factors for growth in Brazilian regions. Some key findings reveal that the recent decline in inequality is mainly driven by advances in resource-intensive regions, while progress has not arrived in many lagging regions, particularly in the Northeast. The process of urbanisation in Brazil has been slower than in other emerging economies. Brazil’s predominantly rural regions have performed above OECD standards, while a number of its intermediate and predominantly urban regions have underperformed. Finally, regions with the lowest socio-economic outcomes have important gaps in key drivers for growth, such as human capital and infrastructure, and are unlikely to make progress in the medium and long term unless improvements are made in these critical areas.

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