In this chapter, we examine key elements of state reform and the importance of e-government as a tool for increased civic participation and effectiveness. Brazil is taken as an example. We outline the political process behind state reform in Brazil and the importance of e-government in this construction. The successful case of the income-tax system and the problem of the digital divide are briefly discussed. Finally, we conclude considering the possibility of a civic participation strategy in the promotion of a sustainable process of state restructuring.