A REFLECTION ON INSTITUTIONAL ARRANGEMENTS AND ECONOMIC DEVELOPMENT IN PUBLIC MANAGEMENT

Abstract

The article discusses the logic of institutional arrangements in the context of the New Public Management (NGP), highlighting its influence on the formulation and implementation of public policies in Brazil after the 1988 Constitution. The objective is to understand how administrative decentralization and public-private partnerships impact governance and economic development. This is a theoretical study based on a literature review, based on authors such as North, Williamson, Coase and Gomide & Pires, seeking to identify the challenges and limitations of these institutional arrangements. The results indicate that the NGP provided greater autonomy to the municipalities and favored new forms of cooperation between the public and private sectors, but also generated difficulties in the coordination between the different actors and in the maintenance of accountability. It is concluded that, although institutional arrangements can strengthen state capacity, their effectiveness depends on the regulatory structure and administrative capacity of local governments.