IBGE is launching the study "Territory Flows and Networks: Land Management", which maps out the country in terms of...

IBGE is launching the study "Territory Flows and Networks: Land Management", which maps out the country in terms of the municipal concentration of connections between company headquarters and their branches and between national public institutions.

The publication analyzes the relationship between municipalities considering the two most important institutions in terms of structuring of the space: the State and the market. The State is approached from the perspective of public management, of the structure formed by state institutions; business management is analyzed from the perspective of connections between headquarters and companies in different cities. The intensity of flows between cities is measured by the number of connection pairs, which interconnected to form business or public management networks.

Only 39.6% of the Brazilian municipalities are acknowledged as management centers, that is, those which have some level of concentration of intermunicipal connections; the other 60.4% either do not have entities representing the selected institutions or are not connected to the structure of company headquarters and branches.

The main management networks in the country are located in São Paulo and Brasília; the first one has relevant participation in the market and the second encompasses the headquarters of public institutions. Rio de Janeiro represents a second level of concentration, with a combination of the two types of networks, the business and the state one.

In 2011, São Paulo had a leading position over 1,442,425 external business management employees (working in branches outside the municipal boundaries of their respective headquarters), among whom 39% were concentrated within the limits of São Paulo state, and 61% were in other states. Rio de Janeiro had 580,019 employees (with 75,460 housed in São Paulo), and Brasília, 390,775, who were present in several areas all over the country.

The cities of São Paulo and Rio de Janeiro, made available, each, 97.8% of the business varieties classified as advanced services for support to enterprises in the country (services related to activities which require administrative, accounting, legal, financial and publicity inputs).

A little more than 70% of firms with branches in the municipality of São Paulo and headquarters out of it have headquarters in the Southeast region. Forty-nine percent of those headquarters are located in São Paulo state.

In business connections between cities, 24 of the 30 busiest pairs are formed by São Paulo and another municipality. The most relevant partner of São Paulo is Rio de Janeiro, followed by Porto Alegre. .

The full text of the study "Territory Flows and Networks: Land Management" is available at https://www.ibge.gov.br/home/geociencias/geografia/redes_fluxos/gestao_do_territorio_2014/default.shtm

See the remainder in Portuguese.

Currently, the State and the Market are the Institutions holding the major space structuring possibilities, working through the organizations which compose them: on the one hand, public entities created to serve the population, collect taxes and obtain data and information; private companies, on the other. The interpretation of land management patterns was based on a double database of idenpendent data, representing the two ways in which the State (using year 2013 as reference) and the Market (with 2011 as reference) organize the space: public management, from the perspective of federal institutions, and business management, from the perspective of connections between company headquarters and branches. Only commapnies Only companies with branches located in municipalities different from those of their headquarters were selected.

In the study of business management, the database was obtained by IBGE's Central Registry of Enterprises (CEMPRE) and it presented the municipal location of enterprises' local units, either as headquarters or branches. The analysis of public management led to the selection of institutions whose activities were decentralized by means of local units housed in several cities: the National Institute of Social Security (INSS), the Ministry of Employment and labor (MT), the Secretariat of Revenue Service, the Federal Court, the regional electoral courts, regional labor courts and IBGE itself.

Only 39.6% of the Brazilian municipalities were classified as management centers, that is, those which have some level of centralization of public or business management systems: the other 60.4% either do not have entities of the selected institutions or are not part of the structure of connections between headquarters and branches of companies.

São Paulo, Brasília and Rio de Janeiro concentrate most management networks

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The management networks in the country are more concentrated in São Paulo and Brasília, the former with significant contribution from companies working in the market and the latter encompassing the headquarters of public institutions. Rio de Janeiro constitutes a second level, combining two types of network: the business and the state one.

São Paulo manages almost 1.5 million workers in other cities

The survey analyzed job-offering areas in Brazil, from the perspective of the total workers managed, those working in branches outside the municipal borderlines of their headquarters. It was observed that, in 2011, the companies headquartered in the municipality of São Paulo had managing influence on 1,442,425 external workers, whereas Rio de Janeiro did on 580,019 and Brasília, on 390,775.

The municipalities located at third level are the capital, Belo Horizonte, the trio Barueri, Osasco and São Caetano do Sul, and Fortaleza, located in the Northeast Region.

61% of the external workers managed by São Paulo are in other states

The field of activity of São Paulo presents a high level of coverage, both in state and national terms. In relation to the 1,442,425 external workers, 39% are concentrated in the state of São Paulo and 61% in other states, being Rio de Janeiro the biggest one, with almost 12%. Considering the number of external workers in the Brazilian Major Regions, we see that 74% of them work in the South and Southeast Regions, 12% in the Northeast, 9% in the Central West and 4% in the North Region. The highlight is the municipality of Rio de Janeiro as the main municipal location involved, housing 123,212 external workers in relation to São Paulo.

Considering the perspective of economic activities developed by workers led by São Paulo out of its boundaries, in general terms, the activities of retail trade involving supermarkets, apparel and accessories deal with 12% of the total workers. Slaughtering of animals and banks account together for approximately 7% and the activities of call centers encompass about 3% of the group of these workers.

Rio de Janeiro gere 580 mil trabalhadores em outras cidades e estados

Out of the 580,019 external workers managed by Rio de Janeiro, the majority, 75,460, comes from São Paulo. Macaé (RJ), with extraction and natural gas activities, leads the second hierarchical level with 33,129 workers. The capitals Recife (30,821), Belo Horizonte (26,651) and Salvador (21,668) close this level. The next level brings the municipality of Ipojuca (PE), which is part of the Metropolitan Area of Recife, characterized by construction activities and port works, besides Brasilia, the capitals Vitória, São Luís, Fortaleza and Porto Alegre, and the cities of Itabira (MG), Salgueiro (PE0, Niterói (RJ) and Duque de Caxias (RJ).

A total 58% of the external workers in companies housed in Rio de Janeiro are located in the Southeast Region and 23% of the workers distributed among the Federation Units are in the state of São Paulo. The workers in the state of Rio de Janeiro make up 19% of those out of the capital.

In the segments of production, the activities of call services, construction of bridges and viaducts, and extraction of iron ore oil and natural gas are associated to the management of 33.7% of external workers by the metropolis of Rio de Janeiro.

Brasília influences 390.8 thousand workers in about ten states

Among the 390,775 external workers managed by Brasília, 74% are employed in activities related to the mailing and banking segments.

The first hierarchical level houses the municipalities of São Paulo and Rio de Janeiro, a position which is guaranteed to these locations due to the central location of both cities. At a second level can be found the municipalities of Goiânia, Curitiba and Belo Horizonte. The third level presents localities beyond the Central-Southern area, with the capitals Salvador, Recife and Fortaleza.

Companies from the Central-West, North and Northeast Regions are strongly linked to the Southeast

The analysis of the subordinate position of municipalities presents the percentage of workers in relation to the total workers housed in each city, identified through CEMPRE, who depend on administrative decisions from companies headquartered out of municipal borders. These data do not consider the employees of branchless companies or of those located in the same municipality as their headquarters.

Proportionally, the most intense relationship with the Southeast is observed in the Central West: 54% of the workers of branches located in the latter have headquarters in the former. In the North, this same relationship with the Southeast reaches almost 50%, which is opposite to the average percentage of 27.4% of internal management in the Major Region. The Northeast has approximately the same percentage of employees whose company headquarters are located in the Major Region itself (44.7%) or in the Southeast (43.6%).

That means the Southeast plays an important role in the national economy, although still reduced in the South Region, an area where most external workers are employed by companies whose headquarters are in the same Major Region (57.7%).

In terms of the urban network, the local centers display, on the average, the highest indexes for dependence on external directors (22%), whereas in big metropolis, on the top of the hierarchy, the average is 16.6%. In the group of Federation Units, Amazonas and Amapá present the highest indexes, of 46% and 45%, respectively.

The main activities which cause dependence on the Southeast are, in case of the Northeast: works related to the electric and telecommunications sectors, slaughtering and extraction of iron ore; of the Central-West: research, slaughtering and retail trade activities of the supermarket segment; of the Northeast: roads and call center services; of the South: companies of hogs and pigs slaughtering, banks and road transportation of cargo.

The Southeast depends on the management of the Central West, notably in state activities related to the central nature of Brasília such as mailing companies and banks.

Rio de Janeiro and São Paulo supply companies with 97.8% of the advanced services

The advanced services of support to companies (services related to activities which require administrative, financial, legal and publicity inputs) are, to a great extent, those which account for the connection of cities to the local economy, performing activities of high aggregated value, and incorporating a strong informational and knowledge element. The activities of São Paulo and Rio de Janeiro, represent, each one, 97.8% of the varieties of businesses classified as advanced services of support to companies in the country. That means these cities have a high capacity of connection between domestic and international economy.

The second level includes the cities of Curitiba, Belo Horizonte, Porto Alegre, Brasília, Salvador, Goiânia, Recife and Fortaleza. At the third level are Victoria and Cuiabá, besides the municipalities of Osasco, Barueri and São Bernardo do Campo (around São Paulo), as well as Criciúma (SC), Novo Hamburgo (RS) and Londrina (PR), representative of the South Region. From the Northeast come Natal and João Pessoa. Belém, Porto Velho and Manaus are the representatives from the Northeast Region which also feature in this classification.

Southeast concentrates 48.4% of the headquarters of companies having branches

The intensity of connection is measured by the sum of interactions between headquarters and branches located in different municipalities, both due to the capacity of this city of housing establishments to communicate with other branches out of their territory, and also due to the presence of branches attracted to their domains, and being managed by headquarters away from their limits.

A total 48.4% of the companies are headquartered in the Southeast Region. The levels of centralization show strong concentration in the Central-South and coastal areas in the Northeast, especially Salvador, Recife and Fortaleza. São Paulo, at the first level of classification, rules, through 9,371 companies, several external branches and attracts to its territory other 6,894 establishments.

Rio de Janeiro and Brasília constitute the second hierarchical level. Despite the quantitative superiority of Rio de Janeiro in terms of intensity (27,427) and the number of companies involved in the management sector (3,1790), Brasília gains evidence with reference to the local units controlled all over Brazil: 18,014 companies. That results from the wide reach of governmental units such as public banks and mailing services. At the third level can be found the capitals of Porto Alegre, Curitiba, Belo Horizonte, Salvador, Recife e Fortaleza, besides Campinas and Osasco.

Average distance between connections interactions ranges from 290 km to 822 km in the North

The average distance between connections (that is, the average distance between connected municipalities) is 395 km. In regional terms, the municipalities which belong to the Southeast Region present the smallest distance in relation to their connections: 290 km. The extreme opposite, with 822 km, belongs to the North Region, characterized by a combination of territory expansion and peripheral positioning in relation to the dominance exterted by the Central South. States such as Acre and Amazonas present figures above 1,300 km of average distance between headquarters and branches. The capitals São Paulo and Rio de Janeiro hold 815 and 950 km, respectively. The high figures, in relation to the overall average, are related to the importance of these two metropolis and the flow centralized in them. Considering Brasília, the 1,062 km expresses the coverage of this network, stimulated by its condition as a national capital.

Rio de Janeiro and São Paulo have biggest national level of connectivity of companies

The mapping of pair of connection shows high internal relationship between the Central South and this region - at a lower level - with the capitals Manaus, Fortaleza and Recife. The pair with the main highlight (Rio de Janeiro-São Paulo), with the intensity of 7,0004 (2,433 headquarters and 4,582 branches) features at the first level of hierarchy. The second level reinforces the presence of São Paulo combined with the capitals Porto Alegre, Brasília, Belo Horizonte and Curitiba, and also the municipalities of Campinas, Barueri, Osasco, Guarulhos and São Bernardo do Campo, reflecting the centralization of the Metropolitan area of São Paulo in economic relationships. The third level gathers 17 pairs, among which 11 have the participation of São Paulo and four, o Rio de Janeiro. At this level are the capitals: Salvador, Recife, Manaus and Fortaleza. In the fifth position, among htose of highest intensity, one identifies pairs formed by other urban centers which are relatively close, such as Aparecida de Goiânia – Goiânia (GO), Jaboatão dos Guararapes – Recife (PE), Canoas – Porto Alegre (RS), Lauro de Freitas – Salvador (BA), Florianópolis – São José (SC), Curitiba – São José dos Pinhais (PR), Cotia – São Paulo (SP) e Vila Velha – Vitória (ES). In general, in psite of the centralization by São Paulo, the main capitals also present several directs connections with each other.

São Paulo - Campinas pair has most intense intrastate flow in the country

Intrastate flows have 57% of the intensity of all the pairs indicated. The most intense flow in this category (2,436) belongs to the São Paulo - Campinas pair, in the state of São Paulo.

Among the Federation Units, São Paulo is the leader with 32.2% of the interstate flows and Roraima presents the lowest intensity, below 0.5%. From a regional perspective, the Southeast Region is the most connected one with 50.7% of the network in terms of the sum of intrastate connections.

Almost half of the municipalities out of business networks are located in the Northeast

The survey also highlighted the profile of municipalities which do not form pairs and were not connected to the major network of headquarters and branches, presented by CEMPRE.

The primary cause for the absence of connection is the existence of business relationships of exclusively local nature. In terms of space, unconnected cities are spread over the national territory. The Northeast Region concentrates most of the records gathering 45.6% of the municipalities, followed by the Southeast, with 21.1%. Among the Federation Units, Minas Gerais is on top of the list with 14%, although this relative position may be associated to the big number of municipalities in this state, whereas Piauí features in second place, with 9.8%. The highest isolation patterns are found in the dry areas of Paraíba and Piauí, corresponding to 7% of the total unconnected cities. There are isolated localities in the eastern areas of Tocantins, in the northwest of Rio Grande do Sul (RS), in the central north and southwest of Piauí, in the Zona da Mata of Minas Gerais and in the North of Maranhão. The unconnected municipalities are characterized by little significant demographic dimensions and, are, in general, located in areas of bigger fragmentation of the municipal grid.

Brasília concentrates part of the current state management, with Rio de Janeiro in second place

The public institutions selected in the study have in common the fact of being organized in a manner in multiple parts of the land, with internal hierarchical structure which reflects the way land is managed. These are aimed at the dissemination of orders, decisions and conduction of services, promotion of justice as well as the collection of demands, taxes and data surveying about the reality of the country, being of fundamental importance to the maintenance of federative balance. The spatial distribution of these public bodies generates an urban character of concentration, since the presence of several entities which form them helps attract the population who uses the services offered by the state, at the same time they work as centers for decision making, with cumulative power over part of the territory.

The connections of public management are marked by a strong hierarchical character, with lower levels situated in local centers, intermediate levels in average cities and highest levels in state capitals, with the top of the hierarchy corresponding to the national capital. Usually, public management networks present a more balanced spatial distribution in terms of business management, once they do not follow an exclusively economic approach.

The classification of cities according to the presence of different levels of administrative structures of central organizations makes clear the role of Brasília, which is the headquarter for most of these institutions and is placed at the highest position of this hierarchy, concentrating a big part of the management flows for itself, besides also presenting a significant number of intermediate and basic levels. Rio de Janeiro comes in second position, since it still has a number of publc institutions, inherited from its period as the capital of Brazil. São Paulo and Recife are placed at the immediately lower level, followed by Belo |Horizonte and Porto Alegre. The fifth level corresponds to Florianópolis, Curitiba, Salvador and Belém, followed by the sixth level, formed by the other capitals of the Northeast, all those of the Central West and also Vitória, Porto Velho and Manaus.