The Role of Development Banks in the Process of Economic Development—Two Latin American Experiences: Mexico and Brazil

Abstract

This article aims to show the role of financing in economic development in two countries, Brazil and Mexico, after World War II (WWII) to present day. We do a careful historical review to see what sort of policies and what kind of structure two national development banks (Nacional Financiera [NAFINSA] from Mexico and Banco Nacional de desenvolvimento Econômico e Social [BNdES] from Brazil) carry out in order to spark industrialization. Our research shows that these banks were successful at promoting growth (but not human development) in particular periods in their country's history (import substitution) and not successful in other periods (neoliberalism).