Perspectives for local management of economic development: the experiences of Salvador and Porto Alegre

Abstract

This paper discusses the perspectives for local management of economic development in Brazil. It focuses on the following issues: the direction of the economic initiatives in course; the place of such initiatives occupy in the municipal policies; the instruments used by the local government to achieve local development. It also analyzes the experiences of two Brazilian capitals, Salvador and Porto Alegre, in the 90¿s. Initially, the paper takes brief tour through the literature related to the subject. Then it describes the approaches to local development adopted by each city government, emphasizing the approaches to social exclusion and urban competitiveness. The conclusion discusses the different approaches and indicates that, despite the limitations, both new and old instruments can be used in the local management of economic development.