The sources for orthodox and heterodox trade and industrial policies in Brazil

Abstract

The Brazilian government has over the past years promulgated a mix of orthodox and heterodox policies for Brazil's economic development. This paper seeks to test whether the existing economic ideas have been prescriptive in formulating the policies, or whether they have been the outcome of the "infusion of private interests" (Katzenstein, 1978) in the policy making process. To this end, the paper charts the origins of the unilateral opening for trade in the agribusiness and contrasts them with the policy process in the car industry, where trade barriers have been erected. The article will identify the channels through which private actors informed the government's interventions and show that the industry bodies have largely prodded the government. The resulting policy maze has left both the representatives of the orthodox as well those of the heterodox approach unsatisfied and has failed to halt Brazil's dwindling manufacturing capabilities.

Post-crisis China impact on trade integration and manufacturing competitiveness between Argentina and Brazil

“…Consequently, the growth area harvested as well as the production of soybeans in Argentina slowed down significantly in the post crisis era. On the contrary, in Brazil, Lula's government implemented liberalization policies regarding soybean cultivation, rendering unhampered access to imported fertilizers, pesticides, and seeds, under the pressure of the famers' associations seeking to capture the market opportunity rendered by China and to expand the domestic production capabilities (Rothacher, 2016). Brazil thus experienced a boom in its soybean sector comparable to that observed in Argentina before the crisis.…”