Economic Power, Development and Neoliberalism in Brazil

Abstract

After its process of industrialization (1950s and first years of 1970s), the Brazilian industrial park became dominated by subsidiaries of large transnational companies that currently hold the control of productive value chains, especially medium and high technology. Neoliberal policies from the 1990s further contributed to internationalization of the industrial park by the privatization of state-owned enterprises, as well reinforcing foreign presence in value chains. Additionally, the “global outsourcing” system also promotes de-industrialization in some sectors. Those neoliberal policies are the result of the subordination of the interests of the national class to large transnational groups. Brazilian financial conglomerates also gain from the orthodox policy that supports neoliberalism. These interests prevent policies from creating a competitive and independent economy. Attempts to change this power structure are always blocked as disrespect to the economic orthodox thinking that serves as technical justification to neoliberalism. Is it still possible to break these relations of subordination and dependence towards real development?

Keywords

• economic power
• development
• neoliberalism
• brazilian economy