SMALL TOWNS: VULNERABLE FINANCE, FRAGILE HORIZONTALITY AND THREATENING VERTICALITY

Abstract

The installation of a large company can change local socioeconomic characteristics and municipal public finances. This is especially true when this revenue is exclusively dependent on a single commoditized natural resource. Towns with these characteristics are even more vulnerable, as they combine the lack of other revenues with fragile federative ties and the constant threat of international price fluctuations. Based on three essential products for the Brazilian exporting list (petroleum, iron ore and soybean) and focus on towns, it is intended to analyze these characteristics and show the risk to which these local economies are exposed.