Meaning of Direct and Indirect Administration (What it is, Concept and Definition)

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THE Public administration is divided into administration direct and indirect. Direct administration is made up of bodies directly linked to federal entities: the Union, states, Federal District and municipalities. Indirect administration is carried out by decentralized and autonomous bodies, but subject to State control.

Broadly, Public Administration can be understood as a set of bodies, agents and services provided by the State.

The public services provided by the direct and indirect Public Administration involve the most diverse areas of collective interest, such as health, education, transport, social security, public safety and development economic.

Direct administration

Direct Public Administration is the set of bodies directly linked to the Executive Branch, at the federal, state and municipal level. These bodies are subordinate to the head of the power to which they belong, that is, there is a hierarchy between them.

The direct administration bodies are legal entities governed by public law and have autonomy. In this case, public services are provided by their own means, that is, without the creation of a new legal personality.

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Examples of direct administration bodies

  • Federal level: Presidency of the Republic and its Ministries, National Congress and Federal Supreme Court.
  • State level: State government and its secretariats, Legislative Assembly, State Public Ministry and Court of Justice.
  • Municipal level: City Hall and its secretariats, City Council and the municipal attorney.

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Indirect administration

The indirect administration is the set of agencies that provide public services and are linked to a direct administration entity, but have own legal personality, that is, they have their own CNPJ.

The creation of organizations linked to the State, but autonomous and decentralized from federative entities is a result the complexity of state functions and the need to provide flexibility in the provision of services public.

This decentralization aims to increase the efficiency and effectiveness of administrative activities and services of collective interest.

In the case of indirect administration bodies, although there is no hierarchy or hierarchical control, the entities are subject to state control and inspection.

The indirect administration entities are:

  • Municipalities: instituted by law, they have administrative and financial autonomy, but are subject to state control. They are public law entities and their main activity is in the public interest. Examples: National Electric Energy Agency (ANEEL), National Social Security Institute (INSS) and the Central Bank of Brazil (BACEN).
  • Public foundations: they are created by law and can be public or private law entities. Their core activity must be in the public interest and these organizations cannot be for profit. Examples: National Indian Foundation (FUNAI).
  • Public companies: they are legal entities governed by private law, created by legal authorization and administered by the government. The capital of public companies is exclusively public. These companies provide services of collective interest and carry out economic activities. Examples: Post Office and Caixa Econômica Federal.
  • Mixed economy companies: legal entities governed by private law, created in the form of a corporation and composed of public and private capital. Most of these companies' shares are owned by the State. Like public companies, they provide public services and carry out economic activities. Examples: Banco do Brasil and Petrobras.

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Organization of Public Administration

The performance of Public Administration activities can be in different ways:

Centralized and Decentralized

Public Administration can provide services to the population in a centralized or decentralized manner. When activities are performed by a single federation entity - Union, states, Federal District and municipalities - this is a case of centralization.

As the entities provide the services themselves, this is an exclusive form of direct administration and there is no hierarchy.

When the function of an administrative entity is exercised through other legal personality, we have the case of decentralization. When there is decentralization, there is no hierarchy, only the link between the created body and the creating entity.

Decentralization can happen by delegation or grant:

  • Delegation: it is carried out through a contract and only the execution of competences is transferred.
  • Grant: it is done by law and both competences and ownership are transferred.

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Deconcentration is another possibility for the Public Administration to carry out its activities. In this case, the creation of public agencies, which have the same legal personality and are subject to a hierarchy and subordination of the central body.

Deconcentration can happen both in administration and indirect.

Principles of Public Administration

The 1988 Constitution, in its article 37, determines the principles that must be followed by the Public Administration to guarantee the good performance of public interest activities. Meet:

  • Legality: do only what the law authorizes.
  • impersonality: always act in the collective interest .
  • Morality: respect for the ethical standards of Public Administration.
  • Advertising: disclosure of all administrative acts.
  • Efficiency: satisfactory services and in reasonable time.

See also the meanings of public service and learn more about the principles of public administration.

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