La Paradiplomacia Financiera en Países Emergentes de Estructura Federativa

Abstract

This article engages into a comparative policy analysis through the mapping of the financial paradiplomacy experience in some emerging market countries. The article introduces the concept of financial paradiplomacy, outlines the financial model of paradiplomacy in countries with federal government structures, compares the experience with financial paradiplomacy in four emerging market countries (Argentina, India, Mexico and Russia), and provides an overview of those experiences compared with Brazil. The article concludes that financial paradiplomacy in emerging markets is limited since subnational governments are required to raise funds in the domestic credit markets at costs above the international market and/or having to accept the intermediation role of the respective central governments in order to obtain loans from the international financial organizations; with just a few of emerging market countries whose subnational governments raise funds directly in the global capital market.