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Macroeconomic Concerns and Intrastate Bargains: Explaining Illiberal Policies in Brazil's Automobile Sector

Published online by Cambridge University Press:  02 January 2018

Laura Gómez Mera
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Abstract

This article seeks to explain the highly interventionist Brazilian automobile policy of 1995, which drastically departed from the neoliberal principles guiding Brazilian economic policy at the time. This seemingly inconsistent policy stemmed from two overlapping bargains. The first, between the private sector and the government's developmentalist, and hence more permeable elements, shaped the policy's content and design. A second, more crucial intrastate bargain pitted the defenders of the previous development model against the team of neoliberal, technocratic economists who had centralized economic decisionmaking authority since mid-1993. These economists' support for the automobile policy must be understood as a response to the macroeconomic and political challenges they faced in 1995. This study highlights the importance of examining the undisclosed actions of the state and the role of intrastate cleavages in political economy outcomes.

Type
Research Article
Information
Latin American Politics and Society , Volume 49 , Issue 1 , Spring 2007 , pp. 113 - 140
Copyright
Copyright © University of Miami 2007

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