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An in-depth analysis of the role of the Brazilian state in its economic development

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  1. Introduction
  2. Brazil state building
  3. The breaking point in international trade
  4. Collapsing of Hapsburg model
  5. Lack of autonomy
  6. The authoritarian bureaucracy
  7. Modification of economic system
  8. Initial point of Brazil's economic downturn
  9. Conclusion
  10. Bibliography

The third world is a subject which has caused much ink. Several features can be found as economic problems, political instability, authoritarian regimes. However, some countries as the tigers (South Korea, Taiwan, Singapore and Hong-Kong) succeed in dealing with their economic and political problems to become developing countries. Latin America did not follow the same way. Many countries of Latin America have still a troubling economic situation with deep wealth inequalities. During the 1960s ?dependency theories? tried to explain why Latin America and other Third World regions were not developing as the North. Some of the more provocative work has been produced by Latin Americans. They were known as dependency theorists and they examined the unequal trade between LDCs which used to sell raw materials to northern industrialized countries that exported manufactured products. The general idea was that some countries had their economy conditioned by the expansion of others.

[...] Since 2005 Brazil is out of IFM's Economic plan but does not deliver from its guardianship and was the tenth world economy with a GDP of billion in 2006. Recently the biggest oil company in Brazil has announced the discovery of large reserve of oil, maybe one of the biggest reserves in the world[21]. If this announcement is true, Brazil will be able to recover its own economic autonomy and to continue its evolution on its own. Bibliography Ben Ross Schneider, Politics within the State: Elite Bureaucrats and Industrial Policy in Authoritarian Brazil, (1991). [...]

[...] The target was to reorganize the state apparatus and to eliminated particularistic and clientele's elements, thus public had to bring the politically and economically strategic sectors of society under its control in order to ensure unhindered progress of the model of capitalist industrial development.? Nevertheless, this change did not eliminated clienteles at all, but was not more than class alliances which had brought an "aristocratic culture"[9] made of patron-client relationships and personalism. This authoritarian bureaucracy grew up through a new political ideology of corporatism: manifest corporatism? which meant the emergence of state capitalism a stronger state involved in central planning and a control over social forces. [...]

[...] Every group wanted to acquire power and privileges through internal fights and the state used to be interventionist because of an economic system (mercantilism) which had required an important role of the state[3] and has enhanced its power. The Portuguese crown as the Spanish in other countries in Latin America created an economic system to grow rich where it was the local population who had to extract precious metals from the mines. In addition, the colonial period brought an economic system, gradually abandoned, and a state model made of an old patrimonial system legitimized by the logic of "divide and rule," a concept created by Niccolò Machiavelli. [...]

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