Principles of New Developmentalism

Abstract

These principles proposed by Luiz Carlos Bresser-Pereira were originally presented and discussed at the 4 th International Workshop on New Developmentalism, São Paulo, July 26, 2019, held by the Center of Studies of New Developmentalism of the São Paulo Business School of the Getulio Vargas Foundation. New Developmentalism is a school of economic thought that has a theoretical body and a set of economic policy proposals; it should not be confused with developmental economic systems. It is focused primarily on middle-income countries, but understands the developed economies need a similar approach. The antecedents of its development macroeconomics are on the Classical Developmentalism and Post-Keynesian Economics, while its political economy, on the Regulation School and Marx. New Developmentalism may be defined by the following principles: 1. New Developmentalism originates from the classical political economy, Keynesian economics, classical institutionalism, classical developmentalism and the regulation school; it adopts primordially the empirical or historical-deductive method which searches to generalize from the regularities and tendency observed in reality; it relies on the most successful national experiences of economic development; it is critical of the neoclassical and the Austrian schools of thought not only because they give to the market roles that it cannot perform, but also because it adopts the hypothetical-deductive method-a method appropriate to the methodological sciences as mathematics and econometrics, not to substantive sciences as economics and biology.

The government as an inducer of the automotive industry: propositions for Brazilian automotive sector

“…This role of the state in the creation of national competitiveness finds its place in the theoretical framework of developmentalism, which according to some authors (Bresser-Pereira, 2015, 2019, 2020a, 2020bCastelo, 2012;Ferreira, 2012;Fonseca, 2015Fonseca, , 2016Herrlein Junior, 2011;Medeiros, 2020;Moraes & Ibrahim, 2020), can be defined as the economic policy formulated to foster the creation of a competitive and innovative industrial environment, in addition to creating factors and stimulating demand.…”