1. Goal
The growing collect oil royalties by municipalities often have a representation in relation to total local government revenue. However, as more stringent laws are lacking to guide public policy, the implementation of that money often does not occur in areas essential to the growth of the cities, there is therefore a tool that drives the city to a sustainable development.
The purpose of this study was to analyze all the municipalities through three indices: Gini index, Firjan municipal development (IFDM) index and sanitation index, they need to be quantitatively appropriate, aimed at ensuring the good quality of life in cities.
2. Methodology
What if you could get a clear answer about the effect of the royalties, the municipalities were divided into small, medium and large (according to cluster analysis) and then divided into the collecting oil royalties or not.
Three indices were calculated for each group for the years 2000 and 2010. This long time was necessary for municipalities to fund-raisers have a long period for the investment of royalties in key areas.
3. Results
We conclude that the value of the index is very similar in both cities, collectors and notcollectors oil royalties, therefore, the development was also very similar.
Despite the evolution of 2010/2000, small municipalities (with or without gains in royalties) are far behind on sanitation.
From the statistical model, which calculated three indices of development for small, medium and large cities, showing that the money from royalties municipalities do not lead to development.
Only in the matter of sanitation, for large municipalities, the index was slightly better for municipalities collectors, however it is worth remarking that this rate was already higher than in 2000.
One of the problems seen was the lack of restriction in the law, which only limits the expenditure arising out of the royalties to pay debts and staff in the municipalities.