Federalism and subnational debt: a discussion on the sustainability of state debt. The subnational debt in Brazil was marked by successive bailouts by the federal government. The path of subnational debt induced some locals and state authorities to claim for further renegotiations. More specifically, some governors and mayors demanded a revision of the refinancing contracts. This article intends to present arguments sustained by simulations of the evolution of the path of the subnational debt, denying the necessity of changes in legal framework, which rules the state debt. The first section consists of a brief overview. The following section treats the institutional framework designed to safeguard the fiscal intertemporal balance. In the third section, the implications of new institutional framework on the subnational debt are approached; in the fourth, the possible causes that distorted the expected path of the debt are discussed. The fifth section analyses the future perspectives for the debt in general terms and focuses some specific cases, while the sixth section discusses the problem under a federal optics. Finally, the conclusion is presented.
Resumen
El proceso de regionalización en Jalisco ocurrido en la década de los noventa, dio lugar a la descentralización de las regiones y a la formulación
The regionalization process in Jalisco occurred in the nineties leading to the decentralization of regions and formulating a regional development plan for each of them. Currently, despite the measures taken to establish regional plans, it appears that there are disparities in regional development, being the most affected, the North Zone of the State. The aim of this chapter is to analyze a key factor, the ratio of the institutions with the development of the Northern region of the State of Jalisco, with a brief analysis of the role of institutions from economic, political, and social perspectives. The method used is a review of the existing literature on institutional theory and the development of the Northern Zone of Estado. It concludes by stating a strategy to promote the development, evaluation, and strengthening of the institutions involved in this process.
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