The organizational challenge at the turn of the century is to conciliate flexibility, efficiency and effectiveness. In this new environment, private institutions use many different strategies, as do corporate alliances, including amalgamations and mergers. The adjustment also involves the structures of the State, as well as its management practices. It is said that governments are expected to practice managerial administration similar to corporate practices, committed to the demands of the citizens - the "customers" of the public sector. Written in the form of an essay, this work aims to suggest a new, unusual, but complementary way to address debates on State reform; the merger and amalgamation of municipalities. This is unusual because it is contrary to the widespread practice of creating new municipalities by dividing existing ones. Supported in literature, the text presents the origins and reasons why municipalities were created, as well as the causes and the advantages of corporate alliances. The suggested proposition is a result of the finding that, since the original causes which gave rise to the municipal units no longer exist, if the municipalities are maintained (by political means) they will contribute to the rigidity, inefficiency, inefficacy and non effectiveness of government action, thus going against the trend observed in the corporate environment.