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The State and its reasons: the 2nd PND

Author

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  • Pedro Cezar Dutra Fonseca
  • Sergio Marley Modesto Monteiro

Abstract

This paper intends to contribute to the debate on the reasons why the Geisel administration (1974-78) chose – as it faced an adverse conjuncture – an accelerated growth agenda which was materialized in the 2nd PND (National Development Plan). In order to do so, it resorts to a methodological definition which is based upon an institutionalist approach and favors the interaction between the political and the economic variables. Contradicting the literature that interprets the strong presence of the State and the regional decentralization of the 2nd PND as signs of neopatrimonialism, it is advocated that this category of analysis is inadequate to explain the government’s choice, although this aspect is embedded in the Brazilian social-historical formation. The political rationality of the plan must be investigated in the conjuncture itself, marked by the liberalization project, which does not clash with the plan’s economic rationality – on the contrary, it is complemented by it. JEL Classification: N16.

Suggested Citation

  • Pedro Cezar Dutra Fonseca & Sergio Marley Modesto Monteiro, 2008. "The State and its reasons: the 2nd PND," Brazilian Journal of Political Economy, Center of Political Economy, vol. 28(1), pages 28-46.
  • Handle: RePEc:ekm:repojs:v:28:y:2008:i:1:p:28-46:id:512
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    Keywords

    Brazil; Brazilian economy; 2nd PND; Geisel administration; political liberalization; economic development;
    All these keywords.

    JEL classification:

    • N16 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Latin America; Caribbean

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