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Industrial policy and state-making: Brazil’s attempt at oil-based industrial development

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  • Eliza Massi
  • Jewellord Nem Singh

Abstract

This paper examines the changing strategies of developmental states using Brazil’s oil-based industrial policy as a case study. We analyse the relationship between the state, Petrobras and industrial elites in the context of Brazil’s renewed emphasis on sector-specific industrial development strategy. Taking stock and re-examining the developmental state model, we suggest that developmental states are inherently political, particularly their bureaucracy and state-owned enterprises (SOEs), and that money politics is intricately woven into state-guided high growth regimes. Given the difficulty of privatisation as a solution to SOE (mis)governance, the challenge for Brazil is to mediate extreme political interventions that have eroded Petrobras’ autonomy in the past and to sustain institutional capacity to direct rents towards investment and innovation.

Suggested Citation

  • Eliza Massi & Jewellord Nem Singh, 2018. "Industrial policy and state-making: Brazil’s attempt at oil-based industrial development," Third World Quarterly, Taylor & Francis Journals, vol. 39(6), pages 1133-1150, June.
    • Handle: RePEc:taf:ctwqxx:v:39:y:2018:i:6:p:1133-1150
    DOI: 10.1080/01436597.2018.1455144
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