Economic Transformation Through Federalismo Model

The approach particularly analyzes the decentralization of unitary states intofederated states, with economic transformation through fiscal decentralizationnaturally being the objective of the analysis. Thus, in particular, the evidence showsthat unitary states do indeed have inefficiencies related particularly to their capacityfor economic transformation, while regions in non-federal states depend largely ondecisions that must be made by policymakers, which in fact have a negative impacton the levels of public policy implementation. In particular, the study shows thatsubnational levels in a federal system can in fact become resilient and naturallytransformative of the economy if, on the one hand, they achieve profound fiscaldecentralization, which nevertheless converges with the lower levels of thesubnational region. In this approach, I propose inclusive decentralization, withcommunity councils as the lowest possible level for the implementation of public andfiscal policies, which can channel economic transformation and assertive territorialcohesion.