Management problems and strategies: The vulnerability of small-sized municipalities

The decentralization process has a strong impact on the finances of small-sized municipalities (SSMs), which are the most vulnerable entity of the Federative Republic of Brazil. This paper aims to analyze the main problems and management strategies used by SSMs to address the inequalities resulting from the decentralization process. This qualitative research is developed through operative groups with 55 workers from the management teams of SSMs in the northern macroregion of Paraná. A comprehensive and interpretative analysis was conducted using the Social Game Theory as a theoretical reference. Among the problems examined are the insufficient capacity to manage municipalities and provide comprehensive health care to citizens. The formation of Intermunicipal Health Consortia, the purchase of services through parallel contracts with private providers, and the adhesion to state and federal programs are strategies to address the problems, but they trigger problems of their own. To minimize the vulnerability of SSMs, it is necessary to empower the municipal manager, implement processes of listening to the SSMs, and foster a culture of facing problems in a collective and shared way among the federated entities to create interfederative management.