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The political economy of the Brazilian model of agricultural development: Institutions versus sectoral policy

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  • Mueller, Bernardo
  • Mueller, Charles

Abstract

This paper analyzes the transition of Brazilian agriculture from low productivity and backwardness to its current status as a major player in international markets. Long-term investment in local agricultural technology was a crucial determinant of this transformation, but the impact of agricultural policy along this path was highly convoluted, often causing more distortions than progress. We highlight the importance of the underlying institutional setting on the impact of agricultural policy. The remarkable transformation in Brazilian agriculture only really emerged when inclusive and sustainable institutions created a fiscal, monetary and political environment in which those policies could succeed.

Suggested Citation

  • Mueller, Bernardo & Mueller, Charles, 2016. "The political economy of the Brazilian model of agricultural development: Institutions versus sectoral policy," The Quarterly Review of Economics and Finance, Elsevier, vol. 62(C), pages 12-20.
    • Handle: RePEc:eee:quaeco:v:62:y:2016:i:c:p:12-20
    DOI: 10.1016/j.qref.2016.07.012
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    3. Dias Avila, Antonio Flavio & Romano, Luis & Garagorry, Fernando, 2010. "Agricultural Productivity in Latin America and the Caribbean and Sources of Growth," Handbook of Agricultural Economics, in: Robert Evenson & Prabhu Pingali (ed.), Handbook of Agricultural Economics, edition 1, volume 4, chapter 71, pages 3713-3768, Elsevier.
    4. Binswanger, Hans P., 1991. "Brazilian policies that encourage deforestation in the Amazon," World Development, Elsevier, vol. 19(7), pages 821-829, July.
    5. Lee Alston & Bernardo Mueller, 2016. "Economic Backwardness and Catching Up: Brazilian Agriculture, 1964–2014," NBER Working Papers 21988, National Bureau of Economic Research, Inc.
    6. Charles C. Mueller, 2012. "Regional Development and Agricultural Expansion in Brazil’s Legal Amazon: The Case of the Mato Grosso Frontier," Chapters, in: Werner Baer (ed.), The Regional Impact of National Policies, chapter 11, Edward Elgar Publishing.
    7. Lee J. Alston & Marcus André Melo & Bernardo Mueller & Carlos Pereira, 2016. "Brazil in Transition: Beliefs, Leadership, and Institutional Change," Economics Books, Princeton University Press, edition 1, number 10745.
    8. Alston, Lee J. & Libecap, Gary D. & Mueller, Bernardo, 2000. "Land Reform Policies, the Sources of Violent Conflict, and Implications for Deforestation in the Brazilian Amazon," Journal of Environmental Economics and Management, Elsevier, vol. 39(2), pages 162-188, March.
    9. Lee J. Alston & Gary D. Libecap & Bernardo Mueller, 2010. "Interest Groups, Information Manipulation in the Media, and Public Policy: The Case of the Landless Peasants Movement in Brazil," NBER Working Papers 15865, National Bureau of Economic Research, Inc.
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    More about this item

    Keywords

    15.005: O5 – Economywide Country Studies; 17.001: Q1 – Agriculture; Agricultural development; Agricultural research; Brazilian agriculture; EMBRAPA;
    All these keywords.

    JEL classification:

    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture

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