Regulation and federation

Abstract

The Brazilian government has made efforts to build up an efficient regulatory system along with the privatization of public utilities, centered on the enactment of the basic legislation, the creation of regulatory bodies and the design of operational procedures. However, important aspects for an efficient regulation in federal regimes, namely the assignment of responsibilities and the institution of proper means for intergovernmental cooperation, have not merited enough attention yet. As privatization enters the area of urban services, where states and municipalities play a strong role, the pressure for paying attention to the specific aspects of regulation in federal regimes will mount. There is no model to rely upon. Each federation has particularities that need to be considered. The objective of this paper is, thus, to stimulate the debate on this subject and raise some issues that deserve further reflection.