New developmentalism in Brazil? The need for sectoral analysis

Heike Döring, Rodrigo Salles Pereira dos Santos and Eva Pocher

Review of International Political Economy, 2017, vol. 24, issue 2, 332-362

Abstract: This article provides an analysis of the uneven practices and outcomes of new developmentalism in Brazil. New developmentalism has been described as a hybrid approach to development. It combines liberal practices of privatization and export orientation with state intervention to achieve social inclusion and economic development. Academic and policy literatures have repeatedly debated the conditions under which development takes place and have particularly focused on the role of the state. So far, discussions have predominantly concentrated on economic developments. We focus on the trajectories of new developmentalism in three strategic sectors in the Brazilian economy: oil, mining and steel, with particular emphasis on the steel industry. We contribute to the debate by paying equal attention to economic and social outcomes in these three sectors. We conclude that new developmentalism is sectorally specific. In the extractive sectors, export competitiveness translates into high wages. In steel, in contrast, new developmentalism brings economic benefits to some but social benefits to few. Thus, it is a paradigm of development but it is not wholly developmental.

Date: 2017
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DOI: 10.1080/09692290.2016.1273841

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