Guerra fiscal e políticas de desenvolvimento estadual no Brasil

This essay focuses on the ?fiscal war? phenomenon observed in Brazil, with a view to identifying its historical and institutional origins, the means utilised in this practice, and its consequences for federal state governments? finance. We hold here two basic theses. First, that while ?fiscal war? does not necessarily result in losses for the practising states, it does necessarily mean losses for the country as a whole, considering that it does not create new investments and maximises the fiscal cost of subsidising private inversion projects. Secondly, that the surprising enlargement of ?fiscal war? recently observed is closely related to the weakening of central government regulation, and to the option shown by this government, in recent times, in favour of abandoning and rejecting any initiative in the field of discretionary development policies.