National development planning is seen asan important tool of economic development, and in Brazil,the 1988 Constitution, includes the "Plano Plurianualde Acao - PPA" (i.e., multi-year development planning),together with the Law of Budget Directives, and the annualbudget laws, as part of a set of legal instruments forfiscal, and public expenditure management. Its main role isto provide the government with strategic guidelines for theallocation of public resources, to improve efficiency, andultimately achieve a higher level of development. Tosummarize, Brazil's PPA is a unique attempt to usetechniques of planning, transform the Brazilian Federalbureaucracy into a modern, results-oriented entity, andeffectively provide public goods and services as demanded byits citizens. Its goals of revamping the state'scapacity to instill a culture of entrepreneurial managementin the public sector, are ambitious; yet, its approach toimplementation is advisedly cautious. Its conceptual designis built explicitly on experiences form the previous PPA,and, the development of the new plan followed a carefulpreparation process that lasted more than two years. The"model" is multi-faceted, and highly complex,appropriate for an evolving process, in which the Governmentis constantly introducing adjustments to the model'sdesign, as encountered from practical implementation challenges.
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