Economic Transformation Trough a Federalism Model

The approach particularly analyzes the decentralization of unitary states into federated states, with economic transformation through fiscal decentralization naturally being the objective of the analysis. Thus, in particular, the evidence shows that unitary states do indeed have inefficiencies related particularly to their capacity for economic transformation, while regions in non-federal states depend largely on decisions that must be made by policymakers, which in fact have a negative impact on the levels of public policy implementation. In particular, the study shows that subnational levels in a federal system can in fact become resilient and naturally transformative of the economy if, on the one hand, they achieve profound fiscal decentralization, which nevertheless converges with the lower levels of the subnational region. In this approach, I propose inclusive decentralization, with community councils as the lowest possible level for the implementation of public and fiscal policies, which can channel economic transformation and assertive territorial cohesion.