Neoliberal Wave Research Articles

A pragmatic approach to State intervention: The brazilian case

This article examiaes State intervention in the Brazilian economy, in an attempt to elucidate why the State ceased to play a decisive part in the country’s development. The primary explanation lies in the cyclical nature of State intervention. In the beginning, intervention tended to be very successful, especially when the country was launching its industrialization phase. Gradually, however, the distortions inherent in intervention without some form of market control began to accumulate, leading the State into fiscal crisis. The current neoliberal wave and its success in advocating privatizations can be understood in these terms.