Building a State Capacity Index for Municipal Governments of Minas Gerais

ABSTRACT Objective: state capacity constitutes the set of essential competences that government institutions have (or should have) in order to achieve public objectives. However, the multidimensional nature of the ‘state capacity’ construct implies a major research challenge for the scientific academy and a major management challenge for public managers. Theoretical framework: the creation of State Capacity Index (SCI) follows the same procedures as the Human Development Index (HDI). Method: the search for variables (proxies) that are pertinent to the Brazilian context and that empirically allow the measurement and operationalization of state capacity was carried out through extensive bibliographic research. Therefore, SCI allowed the general examination of the ‘state capacity’ construct. Results: the results are disparities in the municipal administrative structures of Minas Gerais. Conclusion: it is suggested the need for incentives and investments in the dimensions that cover the State Capacity Index, namely: administrative, political, and fiscal.