ABSTRACT
This chapter analyzes intergovernmental relations from a peculiar point of view: the allocation of the rent from non-renewable natural resources, particularly hydrocarbons, with reference to the two biggest Latin American countries: Argentina and Brazil, which are characterized by a federal system of governance. In Argentina, oil and gas are found in a number of provinces, although a few of them have a huge concentration of reserves. The economy of Argentina and Brazil does not depend substantially on oil and gas, although prospects could change, particularly in the case of Brazil. The importance of oil and gas on gross domestic product (GDP) is small, particularly in Argentina. In Argentina, the data's from the Non-Financial Public Sector in net terms, with an exception of Colombia's case. The chapter has dealt with these issues by focusing on two countries Argentina and Brazil which have a long tradition of sharing natural resource revenue between levels of government.
