Changes in times of globalization: is capitalism not progressive any more?

Vol. 25 No. 3 (2005)

Jul-Sep / 2005
Published July 1, 2005
PDF-Portuguese (Português (Brasil))
PDF-Portuguese (Português (Brasil))

How to Cite

Tauile, José Ricardo, and Luiz Augusto Estrella Faria. 2005. “Changes in Times of Globalization: Is Capitalism Not Progressive Any More?”. Brazilian Journal of Political Economy 25 (3):233-53.

Changes in times of globalization: is capitalism not progressive any more?

José Ricardo Tauile
Professor do Instituto de Economia da UFRJ
Luiz Augusto Estrella Faria
Economista da Fundação de Economia e Estatística, FEE, e Professor da Faculdade de Ciências Econômicas da UFRGS.
Brazilian Journal of Political Economy, Vol. 25 No. 3 (2005), Jul-Sep / 2005, Pages 233-253


Technical progress and economic development are promotions of capitalism, says a well known idea hereby contradicted. Recent changes under neoliberalism show that the more freedom of move to capital the less development of productive forces. There was no synchronicity and coherence fostering economic growth between changes at the micro level of techno-productive and managerial innovations and the ones at the macro level of institutional structures and economic policy. Empowerment of finance capital and monopolies got them opportunity to control the state and set its economic policy to support fictitious capital accumulation and to rule restructuring of corporate management. Surplus redistribution favoring finance capital is a burden to be carried on the back of society’s productive structures, lowering investment, employment and growth. Focusing Latin America and Brazil, the same picture is seen, worsened by external fragility that deepens historical dependency.

JEL Classification: P17; O49; B15.

Keywords: Development Economic Change Productive Forces Neoliberalism Brazilian Economy