The peripheral ‘development’ in question: State action, neoliberal turning and financialization in Brazil

Abstract

This article seeks to analyze, from a broad perspective on development based on a literature review and some data, some aspects of Brazil’s trajectory from Getúlio Vargas’ government until nowadays. The focus relies however on the more recent period, that is, from the process of liberalization / financialization occurred during the 1990s and its effects. Comparisons with Korea are made to argue that countries’ domestic decisions are important and can significantly improve or worsen their position, but these decisions are deeply conditioned by the structural positions of each country in the world system, leading to a contradictory development in the framework of capitalism. In addition, it is clear that an interventionist state is not a sufficient condition for development, but the periphery countries clearly cannot develop without it, as evidenced by the worsening of Brazil’s social situation as a result of liberalization. Finally, the most recent period shows that old challenges and new ones coexist and require to be overcome.