Public Governance as a Factor in the Effectiveness of the Constitutional Rules Applicable to State-Owned Enterprises in Brazil

Abstract

This article evaluates the constitutional provisions regarding direct state exploitation of economic activity or entrepreneurial state, with a specific focus on the inertia involved in forming and managing state-owned enterprises. It aims to provide a balanced analysis without subjective evaluations. Based on analytical research conducted through document analysis, our objective was to establish a constitutional interpretation that links the collective interest with principle of efficiency, while developing a constitutional filter that is backed by a system of public governance. A filter like this can guarantee that the decision-making process surrounding the establishment, upkeep, or privatization of state-owned enterprises is based on evidence and avoids the political-ideological conveniences that periodically change. The guidelines enhance the constitutional understanding of the matter, providing improved guidance for the exercise of representative democracy when conducting an intertemporal analysis of the entrepreneurial state. This enables a more informed public debate on the nature of the state’s entrepreneurial activity, aligning it with the collective interest.