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Center-State Relations in India and Brazil: Privatization of Electricity and Banking
Working paper
Leslie Armijo, Prem Jha
August 1996 |
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This paper uses four focused case studies to explore the following question: “When and why do state governments oppose (or support} privatization programs initiated by the central government?” We examine national privatization initiatives in the 1990s in India and Brazil in the fields of electricity and banking, and the varying responses of the state governments in each country’s major industrial and financial capital, respectively, the states of Maharastra and Sao Paulo.
Possible explanations for state-level opposition to federal initiatives as occured in the cases of Enron and Banespa--include: (1) personal beliefs and ideological commitments of state leaders, (2) differences of political party or coalition between the center and state government, and (3) an unequal distribution of costs and benefits from privatization between the two levels of government. |
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| Last updated on: 12/21/2006 |
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