In her book Estado e economia no Brasil: op?oes de desenvolvimento Sonia Regina de Mendon?a describes the economic development in Brazil since 1930. Focussing on the role of the State in this process and the ideology that underpins each phase. She summarizes her book in the following way.

Introduction

I believe I have made clear in this book that the principal characteristic of Brazil?s capitalism is the importance of the State in its formation. Between 1930 and 1980 the State has increased its role in the economy quantatively and qualitatively.

1930-1955: The start of industrialization

Brazil's industrialization started from a technically and finacially poor base in the 1930's. A series of efforts that go beyond the horizon of calculation and probability of the entrepreneurial class were required. Principally to secure resources. The State entered as a direct producer and state owned companies played an important part in the infrastructure sector. The government's economic policy favoured private capital and was based on the redirection of resources and subsidies to the industrial sector. Plus the strict control of wages by labour and labour union laws. The maximalization of profit in the private sector and the absence of a direct confrontation between labour and capital were the corner stones of this economic model that increased inequality in Brazil. In which industrial development is limited by its dependence on agricultural exports¹ for its foreign currencies.

1955-1964: The opening for foreign capital

This model changed when the social forces in Brazil and the changes in the international situation² combined to make possible the quick development of a foreign backed industry of durable consumer goods. Where the State controlled the cooperation between Brazilian companies and multinationals and expanded its productive and financial functions. The best example of the importance of the State were the integrated plans. The internal contradictions, increasing desnationalization and the use of inflation to generate resources, became clear before this model even reached majority. The price the working class had payed³ for this economic development became clearer during the recession of the early 60's. The resulting political mobilization threatened the continuing accumulation of capital based on this model⁴.

Estado e Economia no Brasil
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