Municipal Plenty, Municipal Poverty, and Brazilian Economic Development, 1836–1850

Municipalities in nineteenth-century Brazil bore the responsibility for providing public services that enhanced economic exchange, particularly physical infrastructure that facilitated the circulation of goods and services. Therefore, the question of whether the resources to pay for these services were abundant or scarce matters greatly to our understanding of Brazil’s history of economic development and socioeconomic inequality. Although ex ante budgets regularly predicted financial abundance, ex post financial statements repeatedly reported chronic deficits and financial instability. In the face of unanticipated revenue shortfalls, municipalities cut investments in essential public infrastructure, thereby dampening domestic economic exchange and perpetuating municipal poverty.