Local empowerment through economic restructuring in Brazil: the case of the greater ABC region

Regional and local capacity building in Brazil, as in other Latin American countries, has traditionally been linked with democracy. Whereas periods of dictatorship usually saw the establishment of a tight grip by the centre over state and local governments, democracy has been linked to greater autonomy at the regional and local levels. The revival of regional and local governments in Brazil over the last decade and a half seems to fall into this latter category. In this paper we will argue that the advent of democracy is however not the only factor behind the recent dynamism at the sub-national level, but that economic restructuring is becoming a major force behind the adoption of more pro-active attitudes and policies by local and regional governments. We will illustrate this theory with the example of the greater ABC region, in the São Paulo metropolitan area, where economic crisis and restructuring has led to inter-municipal co-operation and the creation of a local economic development council.