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Explaining infrastructure underperformance in Brazil: cash, political institutions, corruption, and policy Gestalts

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  • Leslie Elliott Armijo
  • Sybil D. Rhodes

Abstract

Brazil’s infrastructure underperforms compared to that of peer emerging economies. Why? The political institutions of coalitional presidentialism with strong federalism undermine rational national planning. Politicians’ incentives to distribute ‘pork’ combine with sector-specific oligopoly characteristics, offering fertile ground for corruption. Yet the greatest challenge is low infrastructure investment, a consequence of weak private capital markets and regulatory inconsistency. Recent center-right governments improved infrastructure service delivery without stimulating investment, while center-left governments raised investment, but undermined public finances and efficiency. Greater technocratic consensus across the partisan divide on reforms to stimulate investment is one positive consequence of Brazil’s current crisis.

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  • Leslie Elliott Armijo & Sybil D. Rhodes, 2017. "Explaining infrastructure underperformance in Brazil: cash, political institutions, corruption, and policy Gestalts," Policy Studies, Taylor & Francis Journals, vol. 38(3), pages 231-247, May.
    • Handle: RePEc:taf:cposxx:v:38:y:2017:i:3:p:231-247
    DOI: 10.1080/01442872.2017.1290227
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    Cited by:

    1. Zhang, Ning & Zhang, Duo & Zuo, Jian & Miller, Travis R. & Duan, Huabo & Schiller, Georg, 2022. "Potential for CO2 mitigation and economic benefits from accelerated carbonation of construction and demolition waste," Renewable and Sustainable Energy Reviews, Elsevier, vol. 169(C).

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