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Brazil “delivery”: The political economy of the Lula government

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  • Leda Maria Paulani

Abstract

This paper discusses the new Brazilian government’s economic policy at the beginning of 2003. It argues that surprisingly the government of PT (Worker’s Party) has fallen into the perverse logic of “credibility”. This logic implies the death of macroeconomics and will impede the imperative retaking of growth. Furthermore, it demonstrates that the arguments of government to justify this unconditional surrender to orthodox economics makes no sense because it is not possible to prove that Brazilian economy was falling down a precipice at the beginning of the new administration. It also suggests that the spurious identification between responsible administration and liberal economic policy may be pointed as one of the reasons of this astonishing result. JEL Classification: F65; G28; O54.

Suggested Citation

  • Leda Maria Paulani, 2003. "Brazil “delivery”: The political economy of the Lula government," Brazilian Journal of Political Economy, Center of Political Economy, vol. 23(4), pages 563-579.
    • Handle: RePEc:ekm:repojs:v:23:y:2003:i:4:p:563-579:id:916
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    More about this item

    Keywords

    Lula government; Brazilian economy; economic policy; financialization; neoliberalism;
    All these keywords.

    JEL classification:

    • F65 - International Economics - - Economic Impacts of Globalization - - - Finance
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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