The state as a large-scale aggregator: statist neoliberalism and waste management in Portugal

Abstract

This paper explores state-economy relations in an understudied European country, i.e. Portugal. Main research questions are: How does the country fit into the Varieties of Capitalism conceptual framework? Are there specific patterns that define the case as a distinct model of statist economy? The research is influenced by Becker's open, historical institutionalist approach to capitalism (Becker, U. 2009. Open Varieties of Capitalism. Continuity, Change and Performances. Basingstoke: Palgrave Macmillan). The paper offers a macro-account of major transformations in state ownership, in democratic Portugal, followed by analysis of state-economy relations at a sectorial level, namely in the waste management sector. Findings suggest that Portuguese capitalism has evolved from statist socialism into a formally liberalised economy but, in reality, it re-configured into a model of state-dependency perpetuated by the allocation of vast external resources. From large-scale owner to large-scale privatizer, the state adjusted its role as a large-scale aggregator.

Conceptualising capitalism in the twenty-first century: the BRICs and the European periphery

“…Brazil, conversely, represents a variant of state capitalism with democracy and strong elements of corporatism, which allowed the state, in consultation with business and labour, to pursue social democratic inclusive policies (such as Bolsa Familia) since the 2000s that radically reduced poverty and helped the country weather the 2008 financial crisis (Boschi & Pinho, 2018). In both India (Mazumdar, 2014) and Portugal (Evans, Matos, & Santos, 2018) the formerly statist capitalist countries have undergone profound liberal reforms that, however, have as yet done little to tackle the continued, underlying practices of patrimonialism, clientelist politics, and the fusion of the state and business at the expense of poorer parts of the population. In both such countries, the contrast with France is instructive: whereas the state in France's state-influenced market economy can be seen as 'market enhancing', in Portugal and Italy it is more likely to be 'market hindering', given higher levels of corruption and lower levels of state capacity, such as in tax collection or public administration (Schmidt, 2012).…”

“…In Portugal closely-knit informal state-business networks became entrenched through appointments of politically loyal businessmen in state administration and, visa versa, placement of politicians on corporate boards. This led to policy capture, as the process of privatisation since the 1980s demonstrates: old economic groups from the authoritarian age acquired large stakes in the financial sector thanks to their privileged ties to decision makers and thus were able to shape the further course of privatisation (Evans et al, 2018). This process closely resembles privatisation in Russia after the demise of the Soviet Union (Vasileva, 2014).…”

“…The highly centralised tax system in Russia (only a small percentage of taxes collected locally remain in the region) may be a further disincentive for Russian governors to show initiative in the economic affairs of their region, and does not prevent rent-seeking and corruption. Similarly, in Portugal, the entrenched practice of public job compensations for political loyalty of businesses, reinforced by a revolving door system, has lead to detrimental clientelistic networks between public office and powerful corporations (Evans et al, 2018).…”

“…Such politics may explain change through the appearance of a new ideational 'paradigm', as in the case of Thatcher's switch to monetarism in the UK (Hall, 1993). They may also explain change through political leaders' communicative discourse about a 'reference frame' such as the economic imperatives of globalisation, whether in efforts to legitimate neoliberal policies in individual countries, such as Portugal (Evans et al, 2018), France, Spain, and Italy (Schmidt, 2013), in the EU more generally during the economic crisis (Blyth, 2013;Schmidt & Thatcher, 2013), or India as exemplified by the 'Shining India' campaign of 2004. Conversely, Brazil under the rule of the Labour Party embraced socio-democratic and Keynesian ideas to underpin the shift to social inclusion to fight poverty and counter-cyclical economic policies to fend off the repercussions of the 2008 crisis (Boschi & Pinho, 2018).…”

On the Edge of the South European Model: Familism, Business and State in Greece

“…Compare with Portugal's 'statist neoliberalism' analysed byEvans, Verga Matos, and Santos (2018).18 The evolution of the public sector wage premium in Greece is perhaps the most favourite theme in the relevant empirical scholarship (e.g. Monastiriotis 2014, 2015;Kollintzas et al 2018).…”