Vol. 43 No. 2 (2023): Apr-Jun / 2023

Vol. 43 No. 2 (2023)

Apr-Jun / 2023
Published May 10, 2023


An interpretation of the Brazilian economy from the profit rate: 1950-2020
Adalmir Marquetti, Eduardo Maldonado Filho, Alessandro Miebach, Henrique Morrone
Brazilian Journal of Political Economy

The paper investigates the path of the profit rate and its components in Brazil
between 1950 and 2020. The high growth in developmentalism, 1950-1980, in contrast to the
great stagnation in neoliberalism, 1980-2020, is interpreted based on the rate of profit and its
components: the profit share, the productivity of capital and the level of capacity utilization.The fall in the rate of profit due to the decline in capital productivity resulted in a slowdown
in the rate of capital accumulation and economic growth. In the 1980-2020 period there was
a structural break in the relationship between productive investment and profits with the
adoption of neoliberalism, the same profit rate resulted in lower capital accumulation. The
great stagnation is explained by the fall in the profit rate and the adoption of neoliberalism.

JEL Classification: E25; N16; O30.

The Argentinian economic crisis of 2018: background and interpretation
Carlos Henrique Horn, Luiza Pecis Valenti, Ben-Hur dos Santos Petry
Brazilian Journal of Political Economy

This paper deals with the Argentinian economic crisis of 2018. We argue that
the crisis was brought about by the process of financial fragility directly related to the
choice of economic policy made by the Macri government. That fragility came to manifest
in a moment of reversal in the external scenario in 2018. In our analysis, we have gathered
evidence on the macroeconomic performance of Argentina to present an interpretation
based on the concepts of asymmetry of power in the monetary and financial international
system, external vulnerability, and sudden stop crisis.

JEL Classification: E32; G01; H12.

The effects of multidimensional well-being growth on poverty and inequality in Brazil over the periods of 2004-2008 and 2016-2019
Otavio Junio Faria Neves, Ana Márcia Rodrigues da Silva
Brazilian Journal of Political Economy

This study aims to analyze the effects of multidimensional well-being growth on
poverty and inequality in Brazil over the periods of 2004-2008 and 2016-2019. Empirically,
the methodologies of Kakwani and Pernia (2000), Kakwani, Khandker, and Son (2004),
and Shapley’s decomposition are used. The results have demonstrated that a decrease in
multidimensional poverty happened between 2004 and 2008, and an increase happened
between 2016 and -2019. The growth in multidimensional well-being in the second period
has been anti-poor. With the decomposition, it was found that while multidimensional wellbeing
growth contributed to poverty reduction between 2004 and2008, between 2016 and
2019 the concentration contributed to an increase in poverty.

JEL Classification: I31; I32; O11; P46.

Green economy and green jobs: a multisectoral analysis by means of Spain’s social accounting matrix
Omar Chabán-García, Antonio Luis Hidalgo-Capitán
Brazilian Journal of Political Economy

During the last decades the green economy has been proposed from different
international organizations as an economic model for the 21st century that gravitates
around respecting the environment. This paper tries to identify, with criteria of economic
efficiency (high economic impact) and social efficiency (high impact on job creation, green
jobs), the “potentially green sectors” that can be stimulated by a national strategy to develop
a green economy in Spain. For this, we will use the Social Accounting Matrix of Spain 2010,
identifying, by means of the normalized absorption and diffusion coefficients and by means
of employment multipliers, the key, drivers and with greater capacity for job creation sectors
from a group of ten sectors that we have identified as “potentially green sectors”.

JEL Classification: B41; C67; J08; Q57.

The prosperous decade of 2004-2013 and new developmentalism
Demian Fiocca
Brazilian Journal of Political Economy

Since the 1990s, three different phases marked the Brazilian economy: a 13 year
long “quasi-stagnation” (1991-2003); a decade of prosperity (2004-2013); and an 8 year
period of economic decline (2014-2021). Leading new developmentalist authors identify
policies introduced in the 1990s as causes of slower economic growth. This article argues
that, even if that hypothesis is correct, it is still inadequate to treat the last 30 years as a single
economic phase. We then compare policies implemented in 2004-2013 with developmentalist
recommendations, concluding that most of them are compatible. Finally, the article highlights
changes in the international and Brazilian contexts between the 1970s and the present, which
reinforce the importance of analyzing the most recent growth experience.

JEL Classification: N1; B5; O54; N16.

Sectoral deindustrialization and long-run stagnation of Brazilian manufacturing
Paulo César Morceiro, Joaquim José Martins Guilhoto
Brazilian Journal of Political Economy

In Brazil and elsewhere in the world, diagnoses of deindustrialization are
concentrated in aggregate manufacturing, so policies can be ineffective if deindustrialization
has a sector-specific component. This study quantifies and analyses deindustrialization
for the individualised manufacturing sub-sectors. To do this, unpublished series of the
manufacturing sub-sectors’ share in the Brazilian GDP from 1970 to 2016 were created,
based on official IBGE data. The results show that the manufacturing sub-sectors have deindustrialised at different intensities and periods of aggregate manufacturing, and a subsectoral
approach reveals traces ignored by the literature on the quality of deindustrialization.
We conclude that the Brazilian deindustrialization is normal (and expected) for the labourintensive
manufacturing sub-sectors, but premature (and undesirable) for the technologyintensive
sub-sectors. Therefore, Brazilian deindustrialization has negative consequences for
the country’s future scientific and technological development.

JEL Classification: O14; L6; L16.

Mexico: the Great Depression and the Coronacrisis, 1929 and 2020
Eduardo Loría
Brazilian Journal of Political Economy

By contrasting the Great Depression and the Coronacrisis, we demonstrate that
narrative economics (Shiller, 2017) is key in the analysis of economic fluctuations. We note
the importance of the populist narrative to understand the economic and health outcomes
of the Coronacrisis in Mexico and highlight the role of the predominance of different
economic paradigms in economic policy decision-making. We suggest that, just as in 1929,
by following orthodox primary fiscal balance sheet policies at the cost of contracting
government investment, the Mexican economy will undergo a long and painful recovery
process compared to its global peers.

JEL Classification: B22; E02; E32; E62; E71.

SUS funding in the face of the Covid-19 pandemic
Rosa Maria Marques, Mariana Ribeiro Jansen Ferreira
Brazilian Journal of Political Economy

The Brazilian Unified Health System (SUS), since its creation in 1988, has a
history of insufficient resources to effectively guarantee universality and comprehensive
care. Its underfunding, derived from the lack of support from part of society and neoliberal
policies undertaken by various governments in the 1990s and 2000s, turned into effective
reduction in real terms of funding resources after the approval of the “expenditure ceiling”
in 2016, aggravating the structural system difficulty. The Covid-19 pandemic generated
a preeminent need to expand the service capacity of the public health system and, with
that, the resources for the SUS were expanded. However, this greater financial availability
was the result of extraordinary measures and was restricted to the years 2020 and 2021. The ordinary budget for health in those years and the 2022 LOA demonstrate that the
underfunding continues and that the pandemic did not change the lack of priority given to
healthcare within the federal budget.

JEL Classification: I18.

The theory of inertial inflation: a brief history
Luiz Carlos Bresser-Pereira
Brazilian Journal of Political Economy

This paper is the history of how the theory of inertial inflation was developed
in Brazil in the early 1980s, when inflation was very high, much higher than the stagflation
that happened in the United States in the previous decade. Perhaps this fact explains why
the theory was formulated in Brazil and not in the United States. The main papers and the
book that defined the new theory are duly referred. And the author, that in the 1980s and
1990s was a political actor, also tells the history of the application of the theory, the failures
and successes.

JEL Classification: E31; B22.

Identifying racial discrimination by the performance differential of High School students
Diego Carneiro, Maitê Shirasu, Guilherme Irffi
Brazilian Journal of Political Economy

Brazil is characterized by high inequality where initial conditions have a
decisive impact on the trajectory of individuals. In this context, black people are doubly
disadvantaged by their lower income levels and low expectations for development of
their potential. This article used the method of Oaxaca-Blinder (1973) to decompose the
performance difference between white and black students in SAEB 2017, identifying the
part that can not be attributed to its characteristics. The results showed that this component represents about 43% of this difference, and that there is less response from black students
to improvements in educational conditions.

JEL Classification: I24; I25; I28.

Institutionalism and its relations with developmentalism: past, present and future
Ijean Gomes Riedo, Manoel João Ramos, Flavia Piccinin Paz Gubert, Aldi Feiden
Brazilian Journal of Political Economy

This research theoretically analyzes the role of institutions for organizational
development based on developmental and institutional theory, emerging relevant questions,
such as: What were the conceptual frameworks of institutional development? How did the
institutions participate in the economic evolution? How does institutional development take place in Latin America? What is the developmental model for the future? However, it does
not intend to defend political, social and/or economic ideologies, but to debate constructive
issues for sustainable development. In this respect, the research reveals that passive policies
of market operation and segmented public investment programs are not enough, but a
strategic and cooperative action between Industry-Government-University in favor of
sustainable development.

JEL Classification: D02; D23; O21; R58.