The contradictions of neo-extractivism and social policy: the role of raw material exports in the Brazilian political crisis

Abstract

This article explores how contradictory development tendencies within Brazil’s primary sector have contributed to the country’s enduring political crisis. I show that President Rousseff, when dealing with declining royalty payments from natural resource exports and a decrease in tax revenue from imports, financed social policies in ways that her opponents branded as unconstitutional to remove her from power. After documenting the central players within the political crisis, namely those who have been under investigation in Operação Lava Jato (Operation Car Wash), I illustrate how the ongoing corruption scandals plaguing Brazil have their roots in the country’s raw material export industries.