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This paper analyses the strengths and weaknesses of the 1995 administrative reform proposal announced by the Brazilian government. The reform proposal, described in the Directive Plan on the Reform of the Governmental Apparatus – a document publicly released by the Brazilian authorities – argues that the need for reform springs from a “crisis of the state”, involving three aspects: a fiscal crisis resulting from the incapacity of the government to face current public services costs; the collapse of interventionist governments within a global economy; and the failure of the bureaucratic model in the delivery of public services. Adopting the theoretical reform strategy framework developed by Matus in 1996, this paper focuses on eight aspects of the reform in discussing strengths and weaknesses. Finally, the paper discusses the similarities of the reform proposal to the administrative reform undertaken by the Brazilian government in 1967, the effects of the current political environment on the reform proposal and the role of administrative reform in governmental policies. The overall conclusion is that, in addition to the lack of a clear implementation strategy, the administrative reform proposal over‐emphasizes the solving of the fiscal crisis and ignores the role of reform in addressing problems of inequality. Consequently, the reform may lack purpose if it is not strategically connected to wider and encompassing policies aimed at ameliorating acute social problems.

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