Advanced Search
MyIDEAS: Login to save this paper or follow this series

From Foreign to State Investment in the Brazilian Electric Power Sector: the Expropriation of the American Foreign and Power in Brazil (1959-1965)

Contents:

Author Info

  • Alexandre Macchione Saes

    ()

  • Felipe Pereira Loureiro

    ()

Registered author(s):

    Abstract

    The first half of the 1960s was a hallmark in the process of nationalization of the electric power sector in Brazil. The Brazilian State raised its participation in terms of installed capacity from 6.8% in 1952 to more than 54% in 1965. After the Second World War, the demand for energy in Brazil soaked, pulled by an increasing process of industrialization and urbanization. Since the private-owned concessionaries (both national and foreign firms)seemed not interested in meeting that demand, the State was called to play a more preeminent role in energy’s production, setting the stage for the increase of the government share in the field. Thus, the paper deals with the six last years of Amforp’s involvement in the Brazilian electric power sector, employing original data from US and Brazilian archives. The US enterprise came to Brazil in the 1920s, but by the late 1950s its participation and its role in the country was being challenged by many people. Personified as a representative of US interests in Brazil, and charged of not only spoiling national resources as well as of being negligent as to the services provided to society, Amforp faced many judicial charges in courts, leading in 1959 to the takeover of one of its subsidiaries in the state of Rio Grande do Sul by the governor Leonel Brizola. What could be only a matter of the provision of public services in a regional arena, settled by a financial and juridical agreement, became a major diplomatic issue between Brazil and the United States at the early 1960s. At that period, Brazil faced serious balance of payment constrains. As a crucial money-lender, Washington used this condition to blackmail the Brazilian government. Credits were withheld to force the administration of Joao Goulart (1961-1964) to settle Amforp’s expropriation in the ways desired by the company. In this sense, the paper analyses the diplomatic agreements that led to Amforp’s departure of the Brazilian market, showing how this established not only a redefinition of the strategies of foreign investments in Brazil, but also a change of the role played by the Brazilian state in the local electric power sector.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.fea.usp.br/feaecon/RePEc/documentos/AlexandreSaes08WP.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by University of São Paulo (FEA-USP) in its series Working Papers, Department of Economics with number 2012_08.

    as in new window
    Length:
    Date of creation: 16 May 2012
    Date of revision:
    Handle: RePEc:spa:wpaper:2012wpecon08

    Contact details of provider:
    Postal: Av. Professor Luciano Gualberto, 908 - CEP 05508-900 São Paulo - SP
    Phone: +55-11-3091-5944
    Fax: +55-11-3091-6013
    Email:
    Web page: http://www.fea.usp.br/feaecon/
    More information through EDIRC

    Order Information:
    Email:

    Related research

    Keywords: Electric Power; Amforp; João Goulart; Brazil;

    Find related papers by JEL classification:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Colistete, Renato P., 2010. "Revisiting Import-Substituting Industrialisation in Post-War Brazil," MPRA Paper 24665, University Library of Munich, Germany.
    2. William J. Hausman & Mira Wilkins & John L. Neufeld, 2007. "Global Electrification. Multinational Enterprise and International Finance in the History of Light and Power, 1880s-1914," Revue économique, Presses de Sciences-Po, vol. 58(1), pages 173-190.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:spa:wpaper:2012wpecon08. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Pedro Garcia Duarte).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.