 Fiscal Squeeze and Social Policy During the Cardoso Administration (1995-2002)Working Paper Series, Department of Economics, University of Utah from University of Utah, Department of Economics Abstract: Conventional wisdom associates the two lost decades of economic stagnation in Brazil to macroeconomic imbalances and excessive budgetary deficits. This paper suggests that, contrary to conventional wisdom, the fiscal crisis of the state in Brazil was the result of the liberalization strategy that started in 1989, and was accelerated and complemented during the Cardoso administration (1995-2002). In this view, the fiscal crisis of the State resulted from the financial liberalization of the 1990s and the increasing burden of interest payments on public debt. The interest burden, in turn, meant that fiscal spending on social policy was squeezed, a result that is common to liberalization experiences in the periphery. The amount of social spending was insufficient during the Cardoso administration, and problems were not restricted to inefficient spending. Keywords: Fiscal Policy; Development; Latin America (search for similar items in EconPapers) Published in Latin American Perspectives, 34(5), pp. 81-91. There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:uta:papers:2005_11 Access Statistics for this paper More papers in Working Paper Series, Department of Economics, University of Utah from University of Utah, Department of Economics Contact information at EDIRC. |
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