# Rethinking the role of local governments in Brazil (_An earlier Portuguese [version](https://exame.com/colunistas/instituto-millenium/repensando-o-papel-dos-governos-locais-no-brasil/) of this text appeared on September 19, 2023, in Instituto Millenium’s column for Exame magazine_) In Brazil, a country marked by vast social, cultural, and geographical diversity, the standardization of public policies can often act more as an obstacle than a facilitator in social advancement. Promoting the decentralization of power and encouraging innovation in local administrations can be valuable strategies for developing more effective solutions tailored to different realities. In certain contexts, local governments are seen as true "[laboratories of democracy](https://en.wikipedia.org/wiki/Laboratories_of_democracy)," where new initiatives can be tested, adjusted, and improved before being implemented on a large scale. In Brazil, we have already observed successes with this strategy, such as the Bolsa Família program, whose concept - conditional cash transfers - was initially experimented with in localities like Campinas and the Federal District ([Leite & Peres, 2015](https://www.scielo.br/j/osoc/a/FzCmb6y74hYhb55jrSHnfVc/)), before becoming a cornerstone of social policies in the governments of FHC and Lula. Another evidence is the educational model [adopted in the city of Sobral and the State of Ceará](https://pp.nexojornal.com.br/bibliografia-basica/2021/04/01/Regime-de-colabora%C3%A7%C3%A3o), which has gained national recognition and is used as a reference by various public and civil society organizations. Despite the positive examples, there is still an institutional resistance that limits such initiatives, often anchored in the concern about possible inequalities generated by divergences in local policies. This scenario also demonstrates a lack of institutional imagination, illustrated by studies such as that of [Couto and Absher-Bellon (2018)](https://periodicos.fgv.br/rap/article/view/74665), which point to the tendency of Brazilian state constitutions to replicate the Federal Constitution, reinforcing a centralism in the formulation of legal norms. The need for equity should not hinder local experimentation. Local governments should have greater flexibility to explore new approaches, depending on their effectiveness in generating positive results. It is the role of higher levels of governance, such as state governments, to create mechanisms that ensure the progress of regions and governments with unsatisfactory performance. However, institutional imagination is not enough to transform reality. The fear of change is also associated with a limitation of capacities. In this scenario, the administrative centralism of Brasília plays a significant role, since the dependence on federal resources often encourages the homogenization of public policies at the subnational level. To inaugurate a new phase of decentralized experimentation in Brazilian federalism, it is essential to establish mechanisms that motivate local governments to adopt new strategies that meet the peculiarities of their communities. One inspiration is the American model of "Special Districts." [According to 2017 census data](https://www.census.gov/content/dam/Census/library/visualizations/2019/econ/from_municipalities_to_special_districts_america_counts_october_2019.pdf), this model, which comprises approximately 40,000 instances, is the most prevalent form of local government in the USA. These districts are autonomous entities established to meet the specific needs of a region, having control over their budgets and, in certain cases, the ability to establish fees or taxes. They generally have a single and delimited purpose, covering the creation of schools, management of educational systems, or administration of public institutions such as libraries and hospitals. They can also manage services such as highways, air transport, and basic sanitation systems. Operating differently from multipurpose local governments - characteristic in Brazil - special districts are usually established by state governments in the USA, assuming specific responsibilities in demarcated areas, detaching themselves from other forms of local administration present in their territory. Their main advantage lies in their focus, both geographically and functionally, allowing for concentrated and effective management in a single activity. This structure promotes benefits of specialization and scale, being able to encompass several municipalities and facilitating the alignment of interests. The management of the districts is, in most cases, decided democratically, allowing the population to express their preferences based on the performance of local administrators in specific services. Thus, the reelection of a district manager is intrinsically linked to their effectiveness in administering the services under their responsibility, encouraging continuous improvement in areas such as education or health. Furthermore, the American experience indicates that, due to their focus on specific activities, districts often have a more effective response capacity compared to other forms of government, where issues of scale, scope, and politicization can create significant barriers. Notably, elections for management positions in these districts tend to distance themselves from traditional partisanship, providing an electoral dynamic perceived as more direct and less politicized by citizens, when compared to conventional elections in states and municipalities. The observations presented are not universally applicable. Each model of government has its merits and limitations, with there always being room for improvement. The central question is not to define the best form of government theoretically, but rather to identify the governmental structure that best meets the specificities of each community. In this sense, the implementation of special districts could represent a significant innovation in Brazil, a country where municipalities of such diverse sizes, from São Paulo to small towns of 2,000 inhabitants, have, in theory, the same level of autonomy and responsibilities. Thus, Brazil is urged to contemplate the integration of more flexible governmental structures, such as "Special Districts," into its institutional framework. Currently, there is already a form of administrative division rarely used in the country, the Federal Territories, which are directly linked to the Union, without subordination to any state. An analogous concept could be developed at the state level, inspired by the model already implemented in [Fernando de Noronha](https://www.noronha.pe.gov.br/administracao/apresentacao/), Pernambuco, a state district managed directly by the state government. The reformulation and expansion of this governance model to all Brazilian states could not only stimulate innovation and efficiency in public policies but also foster a more agile and responsive federalism, ensuring that each region has the freedom and support necessary to meet the unique demands of its population.