Catching up and falling behind: An appraisal of Brazilian industrial policy in the twenty-first century

Abstract

Amidst analyses of industrial policy's renaissance in Latin America, Brazil is often hailed as the paragon of this movement. The mix of old and new institutions and instruments would constitute a unique effort in promoting industrial development in the post-neoliberal period. However, this experience has been followed by middling results of industrial performance. Reviewing an emerging literature about the institutionalization and results of the Brazilian industrial policy, we argue that important aspects of path-dependency have been ignored. Organizational and ideational resistance have led to a much more traditional and conservative industrial policy than would be expected. Grounded historical analysis about intragovernment conflicts, combined with studies about policy and sectoral developments, could give us elements to better assess the failures and achievements of the Brazilian case.