Brazil's rise and the role of big business

The heart of Brazil’s recent rise in international relations lies in its growing influence in the global economic arena. This article evaluates one aspect of economic activity – the emergence of Brazilian transnational corporations. The article argues that an important legacy of decades of state intervention in the market fostered the successful internationalisation of big business in Brazil, impacting on Brazil’s international profile. However, this legacy also hampered its systemic competitiveness as evidenced by various international competitiveness rankings. The article concludes with some remarks on the long-run sustainability of Brazil’s current economic performance

Assessing the changing roles of the Brazilian Development Bank

Since it was founded in 1952, the Banco Nacional de Desenvolvimento Econômico e Social (BNDES; Brazilian National Bank for Economic and Social Development) has been at the centre of Brazil's industrialisation and development strategy. It played a key role in the evolution of policies from import substitution to market-opening and privatisation, to the ‘new developmentalism’. The article evaluates and discusses whether BNDES fulfils the three typical functions expected of national development banks: financial sector development; business climate enhancement; and knowledge services

Brazil's role in institutions of global economic governance : the WTO and G20

The article evaluates the extent to which Brazil's foreign policy actions, negotiating positions and diplomatic strategies in global governance institutions contribute to supporting its national interest and foreign policy aims. It compares Brazil's preferences and behaviour in the World Trade Organization (WTO) and Group of 20 (G20). For decades, Brazil's primary national interest has been national economic development. The article argues that Brazil is moving from a material interests based definition of its prime national interest to a more complex one that includes both material and prestige/status based aspects. Research demonstrates that Brazil has become increasingly focused on gaining recognition as a leader of developing countries, sometimes even at the cost of realising its full material interests. It considers the value of constructivist international relations theory to understanding Brazilian foreign policy

Is Brazilian capitalism at an institutional equilibrium? A varieties of capitalism approach

Given that Brazilian capitalism does not fit any single ideal type variety of capitalism, the article discusses whether Brazilian capitalism is still evolving towards an ideal type or whether it is already at a hybrid institutional equilibrium. The analysis focuses on the production regime with special reference to capital labour-state relations and examines how firm strategies and public policy impact the nature of capitalism in Brazil. The analysis shows how firms might actually be pulling Brazilian capitalism in a different direction than the state

Brazil's Strategic Diplomacy Failures and Foreign Policy Underachievement under Bolsonaro

The article examines the extent of foreign policy continuity or change and level of foreign policy achievement or underachievement during the Bolsonaro presidency. These are analysed through the lens of 'strategic diplomacy', a concept that considers state capacity for agile long-term oriented diplomatic action. It evaluates three areas of foreign policy, including regional integration, OECD membership, and climate negotiations. The main finding was that Bolsonaro's foreign policies, even if achieved, were often strategic diplomacy failures and damaged Brazil's international reputation. The article's contribution lies in applying a new concept to provide a fresh perspective on Brazilian foreign policy

Business and delays in port reform in Brazil

The case of port modernization reform in Brazil encapsules the problems Brazilian reformers face. Although reform legislation was passed in 1993 (Law 8.630/93), many obstacles remain for full implementation of its provision. This article focuses on how business attitudes and actions deferred reform, and demonstrates how business is unable to contribute to reform implementation because of institutional obstacles and collective action problems. It then suggests a mechanism to overcoming these difficulties; specifically, it examines the evolution of corporatism and the value of constructing democratic close-knit policy communities meeting the needs of each sector. The empirical work is complemented with an unusual combination of three theoretical approaches to explain the political economy of institutional modernization: institutional economics as developed by Douglass North, the logic of collective action as elaborated by Mancur Olson, and policy network analysis as developed by Marsh and Rhodes, Jordan and Richardson

Brazilian business and Itamaraty in the PT era: foreign policy-making in the context of ‘graduation dilemmas’

This article discusses how Brazilian foreign policy-makers addressed one of the key graduation dilemmas facing Brazil, i.e. the need to build domestic support for a shared vision within society for Brazil's role in the international arena. In the context of democratization, foreign policy-makers understood the importance of involving societal actors in developing foreign policy agendas and actions without hampering the coherence of diplomatic activity. Furthermore, in the context of the rising profile of Brazil in regional and global affairs, it became increasingly relevant to identify and appreciate the role of domestic influences and constraints on foreign policy-making. The article argues that the years the Workers' Party (PT) was in government (2003–2016) presented a watershed moment for foreign policy-makers' receptiveness to civil society inputs into foreign-policy debates. To do this, the article analyses how one crucial group of societal actors—business—organized to represent its interests on foreign economic policy, specifically trade policy, and how the Itamaraty (Ministry of External Relations) responded to business collective action. It examines business interactions with the Itamaraty in two phases, with the global financial crisis in 2008 roughly serving as the inflection point. It argues that the shift in the PT's foreign policy-making approach occurs due to three factors: changes in economic conditions, political leadership and societal interest representation. It concludes that the shifting policy preferences (both pragmatic and ideological) also changed the mix of societal influence on foreign policy

Is brazilian capitalism at an institutional equilibrium?: a varieties of capitalism approach1

Given that Brazilian capitalism does not fit any single ideal type variety of capitalism, the article discusses whether Brazilian capitalism is still evolving towards an ideal type or whether it is already at a hybrid institutional equilibrium. The analysis focuses on the production regime with special reference to capital- labour-state relations and examines how firm strategies and public policy impact the nature of capitalism in Brazil. The analysis shows how firms might actually be pulling Brazilian capitalism in a different direction than the state