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Interest Groups and Development: the Case of Brazil in the Nineteenth Century*

Published online by Cambridge University Press:  05 February 2009

Eugene W. Ridings
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Extract

The problem of how institutions have affected economic and social development has occupied much of the attention of social scientists. An area now beginning to attract the attention of students of development is the role of interest groups. However, little work has been done on the influence of interest groups during the nineteenth century, a period in which the developmental progress of nations now considered to be economically and socially ‘mature’ began to differ markedly from those still struggling to achieve such maturity. This paper will examine the ways in which interest groups, principally business interest groups, affected the development of Brazil during the nineteenth century.

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Articles
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Journal of Latin American Studies , Volume 9 , Issue 2 , November 1977 , pp. 225 - 250
Copyright
Copyright © Cambridge University Press 1977

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References

1 This article will use the term ‘interest group’ rather than ‘pressure group.’ For the definitional advantages of the former, see Wooten, Graham, Interest Groups (Englewood Cliffs, N.J., Prentice-Hall, 1970), p. 76. Recent studies of interest groups in Latin America includeGoogle ScholarAstiz, Carlos A., Pressure Groups and Power Elites in Peruvian Politics (Ithaca, Cornell University Press, 1969);Google ScholarShafer, Robert Jones, Mexican Business Organizations: History and Analysis (Syracuse, N.Y., Syracuse University Press, 1973);Google Scholar and Schmitter, Philippe C., Interest Conflict and Political Change in Brazil (Stanford, Cal., Stanford University Press,1971).Google Scholar

2 On the concept of developmental maturity and the importance of the nineteenth century as a ‘take-off’ period, see Rostow, W. W., The Stages of Economic Growth: A Non-Communist Manifesto (2nd ed., Cambridge University Press, 1971), pp. 36–58.Google Scholar

3 For discussion of this problem see Zisk, Betty H., ‘Interest Groups and the Political Process’, in American Political Interest Groups: Readings in Theory and Research, ed. Zisk, Betty H. (Belmont, Cal., Wadsworth, 1969), p. 158,Google Scholar and Finer, S. E., ‘Discussion: The Over-All Effects of Pressure Groups on Political Consensus and Decision Making’, in Interest Groups on Four Continents, ed. Ehrmann, Henry W. (University of Pittsburgh Press, 1958), p. 295.Google Scholar

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8 Schmitter, op. cit., pp. 142–3. Other business interest groups were usually satellite organizations of the commercial associations, or groups with similar aims and even personnel. For an example of the latter see Actas da Assembléa Geral do Centro Commercial, 1897–1905, pp. 1–55, Arquivo da Associação Comercial do Rio de Janeiro, hereafter cited as AACRI.Google Scholar

9 There have been few full-length scholarly studies of commercial associations. For the Bahian group see Ridings, Eugene W., The Bahian Commercial Association, 1840–1889: A Pressure Group in an Underdeveloped Area’ (Unpublished Ph.D. Dissertation, University of Florida, 1970). Businessmen members of commercial associations have also written on their own organizations, although usually dealing little with their role as interest groups.Google Scholar For Rio de Janeiro see Barros, Eudes, A Associação Commercial no império e na república, foreword by Raul de Gócs (Rio de Janeiro, Associação Comercial do Rio de Janeiro, 1959).Google Scholar For Pernambuco see Pinto, Estevão, A Associação Comercial de Pernambuco (Recife, Jornal do Comércio, 1940).Google Scholar For Bahia see Valverde, M. S. L., Subsidio para a história da Associação Commercial da Bahia (Salvador, Duas Améicas, 1917)Google Scholar and Mattos, Waldemar, Pal´cio da Associação Comercial da Bahia (antiga Praça do Comércio) (Salvador, Beneditina, 1950).Google Scholar Much material on the Maranho organization is included in de Viveiros, Jerônimo, História do Con;mércio do Maranhão, 1612–1895, 2 vols. (São Luís, Associação Commercial do Maranhão, 1954).Google Scholar

10 The often-repeated claim of the Bahian Commercial Association to have been founded in s8i i is erroneous. The building which later became association headquarters was completed that year and a committee of administrators for it set up, but the interest group itself was not created until 1840. On the foundation of the Bahian Commercial Association see Bahian Commercial Association to President of Province, Salvador, 24 Nov. 1840, Registro dos OffIcios da Associação Commercial da Bahia, 1840–50, Arquivo da Associaçãco Commercial da Bahia (hereafter cited as AACB), p. 1. The Agricultural Commercial Association of Recife actually preceded that city's commercial association, being founded in 1836. It represented the sugar industry, rather than business as a whole.Google ScholarEisenberg, Peter L., The Sugar Industry of Pernambuco, 1850–1889 (Berkeley, Los Angeles, London, University of California Press, 1974), p. 141.Google Scholar

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14 See Ridings, Eugene W., Elite Conflict and Cooperation in the Brazilian Empire: The Case of Bahia's Businessmen and Planters,’ Luso-Brazilian Review, 12, No. 1 (Summer, 1975), 80–99.Google Scholar

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19 For example, minutes, meeting of 10 Oct 1883, Livro de Actas, 1881– 1890, AACRJ, p. 91;Google ScholarRidings, Eugene W., ‘The Merchant Elite and the Development of Brazil: The Case of Bahia During the Empire’, Journal of Inter-American Studies and World Affairs, 15 (08. 1973), 338.Google Scholar

20 The Rio organization even set up its own news service. Associação Commercial do de Janeiro, Rio, Relatório de 1872, pp. 4–5.Google Scholar

21 Associação Commercial do de Janeiro, Rio, Eslatutos da Associação Commercial do Rio de Janeiro, aprovados pela Assembléa Geral Extraordinária de 12 de Junho de 1883 (Rio de Janeiro, Montenegro, 1884), pp. 43–4.Google Scholar

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23 Neither in commercial association archives, publications, nor official histories do complete lists of honorary members usually appear, save in Associaçāo Commercial Beneficente de Pernambuco, Relatório de 1890, pp. 35–6. The number of prime ministers honored by associations is probably much larger.Google Scholar

24 Anonymous, ‘Traços biográficos do Conde de Mesquita,’ Lata 352, Documento 21, Coleçáo Instituto Histórico, Arquivo do Instituto Histórico e Geográfico Brasileiro (hereafter cited as IHGB), p. 28.Google Scholar

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30 Associação Commercial do Rio de Janeiro, Relatório de 1872, p. 8; Bahian Commercial Association to Chief of Customs, Salvador, 3 Mar. 1871, Relatório de 13 de Novembro de 1871, p. 24.Google Scholar

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33 Beltrāo, Heitor, ‘O Civismo da Praça num Século de Labor’ in Associaçāo Commercial do Rio de Janeiro, Aspectos colligidos a propósito do centendrio de Associaçāo Commercial (Rio de Janeiro, Associaçāo Commercial do Rio de Janeiro, 1935), p. 75;Google ScholarMinutes, meeting of 2 Oct. 1844, Livro I de Actas, AACB, p. 151;Google ScholarPinto, op. cit., p. 230.Google Scholar

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35 For example, Bahian Commercial Association to Francisco Mayrink, P., Salvador, 11 Apr. 1881, Relatório de 1881, pp. 15–18; Honório Augusto Ribeiro to Visconde de Ouro Prêto, Rio de Janeiro, 11 Sept. 5889, Lata 427, Documento 13, Coleção Ouro Prêto, Arquivo de IHGB, pp. 1–2.Google Scholar

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38 Minutes, meeting of 26 Feb. 1883, Livro de Actas, 1881–1890, AACRJ, p. 69; Bahian Commercial Association and Imperial Bahian Institute of Agriculture to Brazilian Parliament, Salvador, 30 May 1884, Relatório de 1884, pp. 22–9.Google Scholar

39 Associação Commercial Beneficente de Pernambuco, Relatório de 1867, p. 6; Commercial Association of Rio de Janeiro to President of Council of Ministers, Rio, 19 Aug. 1887, Livro dos Offícios, 1887–1892, AACRJ, p. 16.Google Scholar

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48 For example, Hermano Joppert, Treasurer of the Rio de Janeiro association, was also a director of four sugarrefining and agricultural development companies. Almanak administrativo, mercantil, e industrial do lmpério do Brazil para 1889 (Rio de Janeiro, Laemmert & Cia., 1889), pp. 1355, 1357, 1389, 1390.Google Scholar

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51 For members of the planter elite who encouraged modernization see Pang, Eul-Soo, ‘The Costa Pinto Clan of Santo Amaro and Engenho Central Born Jardim in Bahia‘ (Unpublished manuscript, Vanderbilt University, 1974).Google Scholar On continuing indifference see Leeds, Anthony, ‘Economic Cycles in Brazil: The Persistence of a Total Culture Pattern; Cacao and Other Cases‘ (Unpublished Ph.D. Dissertation, Columbia University, 1957),Google Scholar and Hutchinson, H. W., ‘Value Orientations and Northeast Brazilian Agro-Industrial Modernization’ Inter-American Economic Affairs, 21 (Spring, 1968), 73–88.Google Scholar

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54 Beltrão, O Civismo da Praça num século de labor’, p. 75. For a biography of Mauá in English see Marchant, Anyda, Viscount Mauá and the Empire of Brazil: A Biography of Ireneu Evangelista de Sousa (1813–1889) (Berkeley and Los Angeles, University of California Press, 1965).Google Scholar

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59 Viveiros, op. cit., 11, pp. 252–3; Commercial Association of Rio de Janeiro to Agent, Compagnie des Messageries Impériales, Rio, 19 Jan. 1870, Relatório de 1870, p. 8.Google Scholar

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63 General Telegraph Bureau to Commercial Association of Rio de Janeiro, Rio, 18 July 1893, Relatório de 1901, p. 11.Google Scholar

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66 Coimbra, Creso, Visā;o histórica e análise conceitual dos transportes no Brasil (Rio de Janeiro, CEDOP do Ministério dos Transportes, 1974), p. 142.Google Scholar

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70 See Praça do Commércio do Maranhāo, Relatório da Commissão da Praça do Commércio do Maranhāo, lido pelo respectivo presidente na sessão de 22 de Dezembro de 1870 (Luiz, São, Mattos, 1871), pp. 11–12; Associação Commercial do Ceará, Relatório de 1872, p. 7; and Associaç´o Commercial Beneficente de Pernambuco, Relatório de 1891, p. 26.Google Scholar

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81 Ibid., p. 214; Joaquim Álvaro de Armada, Conflicto entre negociantes e fabricantes de chapéos? Discurso pronunciado em sessão do Conseiho Administrativo da Sociedade Auxiliadora de Indústria Nacional de 20 de Março de 1877 (Rio de Janeiro, J. Paulo Hildebrandt, 1877), pp. 10–12.

82 Viveiros, op. cit., II, 471 & 558.Google Scholar

83 See Ridings, ‘The Merchant Elite and the Development of Brazil’.Google Scholar

84 Commercial Beneficial Association of Pernambuco to Governor of Pernambuco, Recife, 3 Dec. 1889, Relatório de 1890, pp. 9–11; Minutes, meeting of 1 Oct. 1849, Livro I de Actas, AACB, p. 302.Google Scholar

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86 Commercial Association of Rio de Janeiro to Minister of Treasury, Rio, 24 Jan. 1896, Relatório de 1901, pp. 10–11; Associação Commercial do Rio de Janeiro, Relatório de 1879, pp. 24–5. The wine was made from Brazilian sugar.Google Scholar

87 The tariff of 1879, which showed ‘ protectionist tendencies ‘ (Stein, The Brazilian Cotton Manufacture, p. 16), was revised downward by 1881, provoking a reaction by industrialists. We do not agree with Leff, Nathaniel H. (‘Economic Retardation in Nineteenth-Century Brazil’, p. 489) that Brazil had a protective tariff from the 1840s on. It was not regarded as ‘protective‘ by either the Industrial Association or the commercial associations, who would have been happy to malign the tariff with such a term. On the inadequacy of nineteenth-century Brazilian tariff protection see Luz, passim.Google Scholar

88 Stein, The Brazilian Cotton Manufacture, p. 83; Wileman, J. P., Brazilian Exchange: The Study of an Incontrovertible Currency (Reprint of the 1896 ed., New York, Greenwood Press, 1969), p. 16.Google Scholar

89 Associaçāo Industrial, Relatório apresentado à Assembléa Geral da Associação Industrial em sessão de 10 de Junho de 1882 pela Directorada da mesma associação (de Janeiro, Rio, Luezinger, G. & Filhos, 1882), pp. 20–1.Google Scholar

90 Ibid., pp. 8 & 27.

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95 Associaçāo Commercial do Rio de Janeiro, Estatutos da Associaçā;o Commercial do Rio de laneiro approvados por Decreto n. 6494 de I de Março de 1877 (Rio de Janeiro, Carioca, 1877), p. 20.Google Scholar

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98 There was little divergence of attitude between those houses specializing solely in exportation or importation. The import trade served to finance exportation and there was a common belief that export and import levels tended to balance one another. Furtado, p. 173n.; Morgan to Foreign Office, Salvador, 10 June 1854, London: Public Records Office/Foreign Office 13/321, ff. 353–64.Google Scholar

99 This system was followed in the Bahian Commercial Association from 1851 on, as shown by the nearly unanimous vote for all directors. For example, minutes, general assembly of 22 Oct. 1851, de Actas, Livro I, AACB, pp. 344–5.Google Scholar

100 Luz, op. cit., pp. 43–60.Google Scholar

101 Ibid., p. 53; Stein, The Brazilian Cotton Manufacture, p. 17.

102 Ibid., p. 84; Luz, op. cit., p. 54.

103 Associação Industrial, O Trabalho nacional, pp. 317–34.Google Scholar

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108 The Industrial Association's first general assembly was attended by only twenty members. Relatório de 1882, p.27.Google Scholar

109 Ibid., pp. 76–906.

110 Former prime minister the Viscount of Rio Branco was the President of SAIN in 1877; ex-directors of the Rio association included the Baron of Mesquita and the Count of São Salvador de Mattosinhos. Ibid., pp. I, 17, 50.

111 All major commercial associations protested, and the antigold percentage agitation was often spurred by angry meetings of their memberships. Associaçāo Commercial Beneficente de Pernambuco, Relatório de 1890, pp. 13 and 49; minutes, meetings of 18 June 1890, 28 Mar., 30 May and 26 June 1891, de Actas, Livro, 1890–1896, AACRJ, pp. 5, 40, 44–5.Google Scholar

112 Baer, Werner, Industrialization and Economic Development in Brazil (Homewood, Ill., Irwin, 1965), p. 85.Google Scholar

113 Stein, The Brazilian Cotton Manufacture, p. 85.Google Scholar

114 Rio de Janeiro Commercial Association to Brazilian Congress, Rio, 23 Aug. 1892, Relatório de 1901, pp. 17–19; Associação Commercial do Rio de Janeiro, Relatório de 1906, p. 20.Google Scholar

115 Ridings, ‘The Bahian Commercial Association’, p. 304.Google Scholar

116 Minutes, extraordinary meeting of 9 Dec. 1891, Livro 6 de Actas, AACB, pp. 5–7; Rio de Janeiro Commercial Association to Viscount of Cavalcanti, Rio, 9 Feb. 1892, Relatório de 1901, p. 3.Google Scholar

117 Luz, op. cit., pp. 149–150, 555.Google Scholar

118 Dean, Warren, The industrialization of São Paulo, 1880–1945 (Austin, The University of Texas Press, 1969), p. 29.Google Scholar

119 Bastos, op. cit., p. 28n.Google Scholar

120 Ibid., pp. 133–4.

121 Schmitter, op. cit., p. 195.Google Scholar

122 Commercial associations undertook numerous other functions now commonly performed by government. These included arbitration of business disputes, administration of charity and relief services, and organization of fire and police protection. See Ridings, ‘The Bahian Commercial Association’.Google Scholar

123 See, for example, Lipset, Seymour Martin, ‘Values, Education, and Entrepreneurship’, in Elites in Latin America (eds., Lipset, Seymour Martin and Solari, Aldo, New York, Oxford University Press, 1967), pp. 43–4.Google Scholar

124 As also affirmed in ibid., pp. 24–7.