Abstract
AbstractComparative examples of “good government” at the subnational level may underanalyze the “public goods” problem facing politicians. Delegating authority and resources to policymaking agencies is possible when political conflict is low. The benefits can be maintained only if public agencies establish ties of “horizontal embeddedness” with industrial clients. This case study of innovative industrial policymaking in Minas Gerais, which is compared with one from Rio de Janeiro, finds that horizontal, interagency ties were critical to policy success. The contrast leads to an examination of themineirosystem's efficacy in promoting externalities, attracting foreign investment, and planning infrastructure in the state's automotive industry.
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