THE CONCESSION LAWS (No. 9,478/1997) AND PRODUCTION SHARING (No. 12,351/2010):

THE LOSS OF OPPORTUNITY FOR NATIONAL DEVELOPMENT

Abstract

The concession laws (no. 9,478/1997) and production sharing (no. 12,351/2010) represent the phase of decentralization of the distribution between the Union, states and municipalities, of revenues obtained from the production of oil and natural gas in the Brazilian offshore. This article, in terms of results, presents the absence of technical arguments, both legal and economic, that support the permanence of the current rules for the distribution of royalties and special participation. Furthermore, as a consequence of the first result, the existence of a pattern of inefficiency of resources applied by the municipalities of Rio de Janeiro and Espirito Santo, presented by most of the five largest municipalities collecting royalties and special participation from these states. The cause and effect relationship reinforces the foundations of the thesis of centralization in the Union's power, of resources from royalties and special participation, which can be applied more efficiently.