Transition during late 1980s, due to both internal and external forces.
Back to democracy after 25 years of Military regime
Tradition of strong provinces and municipalities
Transition back to democracy resulted in regain of power by the elites.
Poor economy lead to poverty and exclusion in the cities increased.
Numerous associations are formed because of decentralization resulted in a series of social movements
The debt crisis in 1980 gave IMF and World Bank with fiscal austerity concerns, to pressure harder for transfer of government responsibilities.
And so the Center transferred social-services to local levels.
Ideology of less centralized governments are less bureaucratic, more efficient, and more responsive.
The 1988 constitution who is influenced by pressures from groups such as regional elites, and international agencies.
Indicators of public education increased
The disparity between regions decreased
Improvement in IMR and life expectancy in health indicators but increase in interregional disparities.
Disparities in budget size between small and large municipalities and backward and less backward regions increased.
Democratic innovations like participatory budgeting of Porto Alegre, there by improved public service delivery ( Porot Alegre, is better off place with an active Civil Society)
Four transformations of 1988 constitution
Greater political autonomy to local governments
Greater fiscal autonomy from the Union and responsible social delivery
Rise of tax revenues from 11 to 13 percent between 1987 and 1991, spending from 11 to 16 percent.
Fiscal problems of 1990s led to some degree fo recentralization in 1994 with curbs on fiscal transfers to states and on public spending.