Brazilian Economic Thought: A History of Ideas

Introduction

In this comprehensive and engaging book, Ricardo Bielschowsky offers a sweeping history of Brazilian economic thought, from the colonial period to the present day. Bielschowsky argues that Brazilian economic thought has been shaped by a unique set of historical, political, and social factors, and that it has played a vital role in shaping the country's economic development.

The Colonial Period

The colonial period of Brazilian history was marked by a mercantilist economic system, in which the Portuguese crown sought to control all aspects of the economy. This system led to a number of economic problems, including high prices, shortages of goods, and a lack of economic growth.

The Independence Period

After Brazil gained independence from Portugal in 1822, the country's economic policies began to change. The new government adopted a more liberal economic system, which allowed for greater private sector participation in the economy. This led to a period of economic growth, but it also led to a number of problems, including inflation, inequality, and financial instability.

The Vargas Era

The Vargas era (1930-1945) was a period of great economic change in Brazil. President Getúlio Vargas implemented a number of policies that aimed to promote economic development and social justice. These policies included the creation of state-owned enterprises, the expansion of social welfare programs, and the adoption of a nationalist economic policy.

The Post-War Period

The post-war period was a time of rapid economic growth in Brazil. The country's economy grew at an average rate of 7% per year from 1950 to 1980. This growth was fueled by a number of factors, including the expansion of the manufacturing sector, the discovery of oil, and the influx of foreign investment.

The Debt Crisis

The debt crisis of the 1980s was a major setback for the Brazilian economy. The country's external debt reached $100 billion, and the government was unable to make its debt payments. This led to a severe economic recession, which resulted in a decline in output, investment, and employment.

The Real Plan

The Real Plan, introduced in 1994, was a successful attempt to stabilize the Brazilian economy. The plan included a number of measures, including the creation of a new currency, the real, and the adoption of a floating exchange rate. The Real Plan was successful in reducing inflation and promoting economic growth.

The Lula Era

The Lula era (2003-2010) was a period of strong economic growth and social progress in Brazil. The country's economy grew at an average rate of 4% per year during this period, and poverty and inequality were reduced. Lula's policies included the expansion of social welfare programs, the increase of the minimum wage, and the promotion of economic development in the country's poorest regions.

The Dilma Rousseff Era

The Dilma Rousseff era (2011-2016) was a period of economic slowdown and political instability in Brazil. The country's economy grew at an average rate of only 1% per year during this period, and inflation and unemployment increased. Rousseff was impeached in 2016 amid allegations of corruption.

The Temer Era

The Temer era (2016-2018) was a period of economic recovery and political reform in Brazil. The country's economy grew at an average rate of 2% per year during this period, and inflation and unemployment decreased. Temer also implemented a number of reforms, including a labor reform and a pension reform.

The Bolsonaro Era

The Bolsonaro era (2019-present) is a period of political and economic uncertainty in Brazil. President Jair Bolsonaro has implemented a number of policies that have been controversial, including a reduction in environmental protections and an increase in military spending. The country's economy has also been affected by the COVID-19 pandemic.

Conclusion

Brazilian Economic Thought is a comprehensive and engaging history of economic thought in Brazil. Bielschowsky argues that Brazilian economic thought has been shaped by a unique set of historical, political, and social factors, and that it has played a vital role in shaping the country's economic development. This book is a must-read for anyone interested in the history of Brazil or in economic development.