Multilevel Governance and Paradiplomacy: Lessons Learned from the Experience of InvestSP

Abstract

Motivated by the growing phenomenon of Local Investment Promotion Agencies (IPA) and their paradiplomatic involvement in international negotiations, this paper aims to analyze the role that these agencies have been playing in Brazil and the governance model they adopt. Through the case of InvestSP, the most mature Brazilian IPA, this study examines the topic based on primary documentation and the perspective of various government representatives. As main results, a theoretical framework was proposed to help map the logic of operation of a subnational IPA, its structure, and motivators. Additionally, it was evidenced that paradiplomatic actions have advanced independently by local powers, without effective coordination from the federal government, characterizing a process of (dis) diplomatic governance and institutional inertia.