Neoliberalism in Brazil

In an article entitled “Resisting and reshaping destructive development: social movements and globalizing networks”, P. Routledge describes neoliberal development, “Contemporary economic development is guided by the economic principles of neoliberalism and popularly termed ‘globalization’. The fundamental principal of this doctrine is ‘economic liberty’ for the powerful, that is that an economy must be free from the social and political ‘impediments,’ ‘fetters’, and ‘restrictions’ placed upon it by states trying to regulate in the name of the public interest. These ‘impediments’ - which include national economic regulations, social programs, and class compromises (i.e. national bargaining agreements between employers and trade unions, assuming these are allowed) - are considered barriers to the free flow of trade and capital, and the freedom of transnational corporations to exploit labor and the environment in their best interests. Hence, the doctrine argues that national economies should be deregulated (e.g. through the privatization of state enterprises) in order to promote the allocation of resources by “the market” which, in practice, means by the most powerful.” (Routledge)

Neoliberalism is a form of economic liberalism that emphasizes the efficiency of private enterprise, liberalized trade, and relatively open markets. Neoliberals seek to maximize the role of the private sector in determining the political/economic priorities of the world and are generally supporters of economic globalization. During the 1930s and the late 1970s most Latin American countries used the import substitution industrialization model to build industry and reduce dependency on imports from foreign countries. The result of the model in these c...

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...that this tactic might initially have. (Edemariam) Essentially, these policies might have worked for Brazil for a period of time, but in the long run they can hurt local economic growth.

Works Cited

De Lourdes Rollemberg Mollo, Maria and Alfredo Saad-Filho. "Neoliberal Economic Policies in Brazil (1994 – 2005): Cardoso, Lula and the Need for a Democratic Alternative." New Political Economy March 2006: 99-123.

Edemariam, Aida. "'Everybody knows it doesn't work'." 18 February 2009. The Guardian. 2 March 2011 .

Filh, Alfredo Saad. "Neoliberalism, Democracy, and Development Policy in Brazil." DEVELOPMENT AND SOCIETY June 2010: 1-28.

Routledge, P. "Resisting and reshaping destructive development: social movements and globalising networks." Geographies of Global Change (2002): 310-327.