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The Rise and Fall (?) of a New Developmental State in Brazil

Author

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  • Judit Ricz

    (Centre for Economic and Regional Studies of the Hungarian Academy of Sciences Institute of World Economics, Budapest)

Abstract

We investigate the most recent experiment of the state-led development approach in Brazil, and reveal some of its merits and shortcomings in the light of the current difficulties of the country. Using institutional and political economy approach we argue that under the Lula administration (2003–2010) a special economic policy mix has emerged, which although maintained some continuity with both the old Brazilian developmental state and the neoliberal reform period, can be regarded as a new model of developmental state (DS) in Brazil. The way how Brazil has achieved pro-poor and inclusive growth since the Millennium offers useful lessons for other emerging and developing countries. At the same time, economic and social processes of the last 4-5 years have highlighted the fragility of the new Brazilian developmental state model and finally led to its dismantling (while even raising questions whether it can be regarded as a DS at all).

Suggested Citation

  • Judit Ricz, 2017. "The Rise and Fall (?) of a New Developmental State in Brazil," Society and Economy, Akadémiai Kiadó, Hungary, vol. 39(1), pages 85-108, March.
    • Handle: RePEc:aka:soceco:v:39:y:2017:i:1:p:85-108
    Note: The research was co-financed by the NFKIH (OTKA) project No. 112069 “Varieties of Capitalism – Varieties of Direct Economic Intervention of the State”. The author would like to thank the anonymous reviewers for their helpful and constructive comments to the article.
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    Cited by:

    1. Judit Ricz, 2017. "Brazilian companies going global - home country push factors of Brazilian multinational enterprises‘ (BMNEs‘) investments, general characteristics and tendencies of their investments in the European, ," IWE Working Papers 231, Institute for World Economics - Centre for Economic and Regional Studies.
    2. Tamas Szigetvari, 2017. "Turkish investments abroad, with a special focus on Central and Eastern Europe," IWE Working Papers 233, Institute for World Economics - Centre for Economic and Regional Studies.
    3. Benczes, István & Szabó, Krisztina, 2023. "Társadalmi törésvonalak és gazdasági (ir)racionalitások. A közgazdaságtan szerepe és helye a populizmus kutatásában [Social cleavages and economic (ir)rationalities: The role of economics in populi," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(1), pages 23-54.

    More about this item

    Keywords

    developmental state; Brazil; new developmentalism; crisis; economic policy;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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