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The paper addresses the institutional and managerial changes of the Brazilian
municipalities after the new constitutional order that strengthened their autonomy as a
federal entity and promoted the decentralization of public policies. But the decentralization of policies and municipal autonomy set forth in the Federal Constitution of 1988 were not followed by the increase of the state capacities necessary for the assumed tasks. These deficiencies are central aspects for municipalities to meet the objectives of the 2030 Agenda, since they require institutional capacity of planning and management to handle with health, education, public security, housing, sanitation
and sustainable economic development policies. Thus, if the Brazilian federation expanded municipal competencies in public policies in the last 30 years, efforts to qualify municipal management are not very successful. The challenge of the 5570 Brazilian municipalities is great to implement the 17 Sustainable Development Goals
(SDGs), since the decentralization begun in 1988 was not accompanied by municipal institutional strengthening. On the other hand, the proposal to municipalize the SDGs is a way to adjust general goals at that level of government and can be an important planning tool for the municipal territory. The process of managerial innovation and the institutional strengthening to face these deficiencies can be stimuli for responding locally to these Goals. The paper analyzes how Brazilian municipalities are developing their state capacities to respond to the demands of the "localization of the SDGs"
defined by the UN/UNDP.