Abstract
The towering figure of the Baron of Mauá holds an indisputable place in the economic development of Brazil. His trajectory is widely analyzed not only because of his important achievements, but also because he became the symbol of an entrepreneur, whose failure in business is often blamed on an institutional context that could not understand his vision of development for the country and was hostile towards his industrialization projects and modernization of Brazil. Nevertheless, if we review his trajectory, we will see that not only can his actions in business be considered mistaken, if analyzed in the light of current concepts developed in the field of strategy, but they were also close to the governmental policies of the time. Therefore, to a certain extent, Mauá was a prisoner of the Brazilian institutional context of his day. The aim of this article is to review the position that Mauá, as a classic-style entrepreneur, was opposed to the institutional order of his day and, for that reason, would have been punished. We will actually see that on the one hand, he was opposed to it, and on the other he also trusted it and came to depend on it.
Highlights
There is very little doubt about the important role played by Irineu Evangelista de Sousa, better known as the Baron of Mauá, in the economic development of Brazil
Continuing on the theme of Brazil, when we look back at the sudden growth that was characteristic of the Brazilian economy from the end of World War I right up to the late nineteen seventies, we see that this phenomenon could not be explained without resorting to the changes in the institutional context like changes in legislation, the creation of fomentation agencies, changes in the tax system, changes in commercial and industrial policy, etc
This article shows the importance of considering the institutional context to explain a business strategy
Summary
There is very little doubt about the important role played by Irineu Evangelista de Sousa, better known as the Baron of Mauá, in the economic development of Brazil. Industrialist, trader, farmer and politician, his name is associated with the building of the first railway in the country. He was a pioneer in establishing the first foundry, in providing lighting in Rio de Janeiro, in coasting trade in the Amazon and making possible the first underwater cable that connected Brazil to Europe, thereby making telegraphic communication viable. Just as impressive as these achievements and the vast empire that he built was the twilight and the end of his business career. In order to appreciate the extent of his achievements, at his height, circa 1867, the total value of his assets was 115,000 contos de reis (the Brazilian currency of the day) at a time when the entire budget of the Empire, under Dom Pedro II, was 97,000 contos de reis. In 1877, almost thirty years of business ventures having elapsed, Mauá’s business license was revoked as a result of his declaring bankruptcy because he could not persuade the government to renegotiate his debts, which he had been struggling to pay off since a moratorium of Mauá & Co. had been declared three years previously
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