The State, Political Power, and the Financialization of Agrarian Space in Brazil

Abstract

The analysis of this paper is focused on economic development and environmental surpluses. It emphasizes the importance of agrarian space as well as the state’s role in organizing society to favor capitalist development. The paper employs a Marxist theoretical framework to define the difference between the state and the government. It uses this framework to examine some of the main features of the PT government and its role in promoting rural financialization in Brazil. The paper examines major subsidized financial products as well as their public cost. It concludes that the state’s role in the financialization process was not just a choice on the part of the Brazilian government but also a reflection of the economic power exerted by financial and agrarian capital.