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The developmental state in Brazil: Comparative and historical perspectives

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  • Ben Ross Schneider

Abstract

The record of successful developmental states in East Asia and the partial successes of developmental states in Latin America suggest several common preconditions for effective state intervention including a Weberian bureaucracy, monitoring of implementation, reciprocity (subsidies in exchange for performance), and collaborative relations between government and business. Although Brazil failed to develop the high technology manufacturing industry and exports that have fueled sustained growth in East Asia, its developmental state had a number of important, and often neglected, successes, especially in steel, automobiles, mining, ethanol, and aircraft manufacturing. Where Brazil’s developmental state was less successful was in promoting sectors like information technology and nuclear energy, as well as overall social and regional equality. In addition, some isolated initiatives by state governments were also effective in promoting particular local segments of industry and agriculture. Comparisons with East Asia, highlight the central role of state enterprises in Brazil that in effect internalized monitoring and reciprocity and bypassed collaboration between business and government (that was overall rarer in Brazil). JEL Classification: O14; O25; O54.

Suggested Citation

  • Ben Ross Schneider, 2015. "The developmental state in Brazil: Comparative and historical perspectives," Brazilian Journal of Political Economy, Center of Political Economy, vol. 35(1), pages 114-132.
    • Handle: RePEc:ekm:repojs:v:35:y:2015:i:1:p:114-132:id:217
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    File URL: https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/217/207
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    Citations

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    Cited by:

    1. Ronaldo Parente & Marne Melo & Daniel Andrews & Arun Kumaraswamy & Flavio Vasconcelos, 2021. "Public sector organizations and agricultural catch-up dilemma in emerging markets: The orchestrating role of Embrapa in Brazil," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(4), pages 646-670, June.
    2. Fernando Filgueiras & Pedro Palotti & Graziella G. Testa, 2023. "Complexing Governance Styles: Connecting Politics and Policy in Governance Theories," SAGE Open, , vol. 13(1), pages 21582440231, March.

    More about this item

    Keywords

    developmental state; industrial policy; state owned enterprise; Brazil;
    All these keywords.

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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