Vol. 43 No. 4 (2023): Oct-Dez / 2023

Vol. 43 No. 4 (2023)

Oct-Dez / 2023
Published November 16, 2023


Tribute to Ignacy Sachs (1927-2023)
Jorge Felix
Brazilian Journal of Political Economy

The death of the Polish economist comes just as the world
watches in bewilderment – but well warned by him – the
effects of the ecological catastrophe heralded for decades

New steps in the construction of New Developmentalism
Luiz Carlos Bresser-Pereira
Brazilian Journal of Political Economy

In this paper I propose new or relatively new steps in the construction of New
Developmentalism: the existence of current account policies, the policy of growth with
current account deficit, besides the current and the industrial equilibriums, the equilibrium
with current account deficit, and the extended Dutch disease. The three equilibriums are
depicted in a new figure. A new form of neutralizing the Dutch disease using import tariffs
and export subsidies on manufactured goods is discussed.

JEL Classification: F31; E4.

The real exchange rate matters, but why? A new developmentalist assessment
Hugo C. Iasco-Pereira, Fabrício J. Missio
Brazilian Journal of Political Economy

New Developmentalism doctrine defends the central role played by a
competitive real exchange rate in promoting catch-up in developing economies. Recently,
this theory has been questioned by critics; the main criticism has been that an outward
growth strategy based on a competitive real exchange rate would harm income/real wage
distribution and have a negative effect on the economy. This study discusses how the real
exchange rate influences growth in light of the new developmentalist doctrine and the 
contrasting experiences of Asian and Latin American countries. Its main contribution is
to document the influence of the real exchange rate on economic performance, specifically
through certain transmission channels. The article’s findings suggest that a competitive
RER is an important aspect in a country’s growth path, insofar as it favors profits, capital
accumulation, net exports, and gains in social capabilities.

JEL Classification: O1; O11; O19.

The concept of Developmental State revisited
Isaias Albertin de Moraes
Brazilian Journal of Political Economy

The article lists as a hypothesis that the concept of Developmental State
has recently undergone variations and needs to be revisited and updated, but not
discarded; on the contrary, it remains extremely important nowadays. In order to test
its hypothesis, the article adopted as a technical-methodological procedure a systematic
approach of bibliographic sources, intending to conduct a State-of-the-Art Study about
the Theory and the concept of the Developmental State. The results obtained were that
the concept of Developmental State remains elementary, but it has become more complex,
intricate, aggregated and dynamic. The article dares, therefore, to present a new concept of
Developmental State.

JEL Classification: B2; O10; P48.

State planning and the sustainable development convention: an introduction
Carmen Feijó, Fernanda Feil, Linnit Pessoa
Brazilian Journal of Political Economy

A crise climática é uma crise humanitária. Eventos climáticos extremos abalam
o mundo e as políticas de adaptação e mitigação climáticas devem fazer parte do planejamento
de Estados Nacionais. O não cumprimento da meta definida pelo acordo de Paris
(aumento de temperatura em até 2ºC, tentando limitar a 1,5ºC em relação ao nível pré-industrial,
até 2050) ameaça a manutenção do padrão e das condições de vida que conhecemos
hoje. Nesse contexto, o Estado precisa retomar seu protagonismo enquanto promotor
de políticas públicas dado que é o agente econômico capaz de trazer estabilidade, reduzir
a desigualdade e traçar regras para planejamentos visando o crescimento de longo prazo
com sustentabilidade ambiental – ou seja, o crescimento com desenvolvimento econômico
no contexto de transição climática. O processo de transição verde sustentável necessita de
coordenação entre os agentes econômicos em uma nova configuração das relações de produção
– ou seja, uma nova Convenção para o Desenvolvimento Sustentável. Esse processo
deverá contar com a participação ativa do Estado, do mercado e da sociedade civil. Nesse
sentindo, a retomada das práticas de planejamento estatal será essencial para coordenar a
alocação dos fatores, direcionando as economias para a transição verde sustentável. A promoção
de uma mudança na convenção econômica, focada na transição verde sustentável, é
essencial para enfrentar o desafio que se impõe. É nesse sentido que o planejamento econômico
é parte da estratégia para conduzir à transição verde sustentável. Este artigo defende
a necessidade de uma Convenção para o Desenvolvimento Sustentável que resgate o Estado
desenvolvimentista em contraponto ao Estado neoliberal, em grande medida subordinado
aos interesses rentistas do sistema financeiro.

JEL Classification: E60; H11; O2; P11.

Financialization, credit rating agencies, and “policy space”: The Brazilian experience
Pedro Lange Netto Machado, Luiz Fernando de Paula
Brazilian Journal of Political Economy

This paper analyzes the restrictions imposed by financialization on domestic
policy space, especially in emerging economies, in light of the actions of credit rating agencies.
The working hypothesis is that these agencies, in their interaction with governments, act to
constrain the policy space from their position in the international financial system. Thereby,
they operate in favor of the financial markets’ agenda through the issuance of sovereign
ratings and at the discursive level. The methodology draws on the case study of Brazil, based
on sovereign ratings and reports issued by S&P Global, Moody’s, and Fitch Ratings, which 
shows that such agencies have a vast repertoire to promote the orthodox neoliberal agenda
in the national political and economic process.

JEL Classification: F62; F65; Y80.

PIX: explaining a state-owned Fintech
Mario G. Schapiro, Pedro Salomon Bezerra Mouallem, Eric Gil Dantas
Brazilian Journal of Political Economy

This paper aims to explain the Brazilian Central Bank’s (BCB) decision to create
and operate a new instant payment system: PIX. Understanding that “digital financialization”
can take different forms, this study sheds light on the factors that led to the BCB’s choice
to launch a “state-owned Fintech”. The analysis considers three complementary factors.
Firstly, the BCB’s institutional trajectory has made it protective of its perimeter of power.
Secondly, the ideas shared by transnational networks support the active role of central banks
in managing instant payment issues. Thirdly, the interests of traditional banks were not
significantly impacted to the extent that they would oppose the creation of PIX. Through 
examining BCB documents and secondary literature, this study provides a first-hand account
of the motivations and circumstances that led to the creation of PIX in Brazil.

JEL Classification: G18; K23.

The rentier behavior of the Brazilian banks
Bruno Mader
Brazilian Journal of Political Economy

Brazil is an emblematic financialization case in which a high Selic interest
rate benefited financial institutions. However, the real Selic rate has historically declined,
becoming negative in 2020. As a result, one should expect banks’ incomes to be negatively
affected, yet this was not the case. Banks overcame this macroeconomic challenge by
increasing credit operations. Within this context, our study confirms that the increasing
credit spread income is inversely correlated to the declining Selic rate. Hence, we conclude
that banks have maintained a rentier behavior: security gains derived from the past high
Selic rate phase were replaced by a high spread charged to credit consumers.

JEL Classification: G00; E42; E43; E44; B50.

Trade opening, productivity and employment in Brazil
Thalita Borges, João P. Romero, Fabrício Silveira
Brazilian Journal of Political Economy

The present article proposes the reevaluation of productivity growth before
and after the Brazilian commercial reopening in the 1990s. To understand how the different
sectors behave through this change, an exercise of productivity decomposition is made. The
main contribution of this study is in the incorporation of the unemployed sector into the
analysis, which helps to recognize how the opening harmed workers that were dislocated 
either to low productivity sectors or to inactivity. The study shows that these negative effects
on the job market were huge, resulting in the fall of the average productivity growth of
workers when compared to the pre-opening period.

JEL Classification: J24; O4.

Pemex in the context of the global oil company: investment policy and lessons learned
Angélica Tacuba Santos
Brazilian Journal of Political Economy

The article analyzes Pemex’s investment policy for the period 1980-2019, based
on the management of other oil companies. The central question is whether in the last four
decades, it has been convenient for Pemex to be specialized in oil extraction, while other
companies focused on the comprehensive development of the supply chain. The answer is
negative. The sale of crude oil and the abandonment of refining made Mexico a net importer
of fuels, a trend, which, today, is seeking to be reversed, in an environment of a high fiscal
burden and high indebtedness of the company.

JEL Classification: F23; O47; O11; Q43; Q48.

The dilemma of growth: pollution and health impacts in the BRICS countries (Brazil, Russia, India, China, South Africa)
Amir Elalouf
Brazilian Journal of Political Economy

One of our era’s greatest menaces is pollution, particularly air pollution, on
account of its negative impact on climate change which has greatly influenced morbidity,
mortality, and has a devastating effect on health. Pollution and its impact on health is a
major substratum of economic growth because it tends to have a crippling effect on the
economy of countries that have overindulged in pollution-causing activities. Pollution-prone
countries are countries that are known to dominate the manufacture and supply of goods, 
services, and raw materials and countries whose growth models are based on the availability
of natural resources and their products. A perfect example of these types of countries is the
group called the BRICS (Brazil, Russia, India, China, and South Africa). In this study, the
mixed-method methodology was utilized in acquiring and analyzing secondary data on the
economic growth and pollution in the BRICS countries, and case studies on the impact of
pollution in certain parts of these countries were explored. The result of all the investigations
showed that the creation of the NDB helped to preclude the “state of dependency” described
by Andre Gunder Frank. We discovered that the high growth rate of the BRICS countries
has had a negative impact on environmental quality over the years, industrialization and
urbanization being the major factors influencing the growth rate.

JEL Classification: F10.