The Politics of Financialization in Brazil

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World Review of Political Economy

Volume 7, Issue 1

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The Politics of Financialization in Brazil

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Author(s): Daniel Bin

Publication date (Print): Spring 2016

Journal: World Review of Political Economy

Publisher: Pluto Journals

Keywords: Brazil, crisis, financialization, politics, public debt

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Abstract

Beginning with an analysis of the global context of substitution of neoliberal for developmentalist ideology, this article examines the financial expansion of the Brazilian economy that has taken place in the last two decennia. This process occurred in a context of a reorganization of economic relations, in which the state's role was fundamental despite the neoliberal discourse. Efforts to restore the profits of classes whose incomes were reduced by welfare policies were subjacent to this discourse. In Brazil, the neoliberal ideology began to be consolidated in the mid-1990s, with the Real Plan as its landmark. In addition to inflation control, the plan sought to attract over-accumulated capital that was circulating globally in search of profitable outlets. Reproducing the historical connection between capitalism and the state, a financial expansion of the Brazilian economy also occurred under this association, in which public debt was the great engine.

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Journal ID (doi): 10.13169

Journal ID (publisher-id): worlrevipoliecon

Title: World Review of Political Economy

Publisher: Pluto Journals

ISSN (Print): 2042891X

ISSN (Electronic): 20428928

Publication date (Print): Spring 2016

Volume: 7

Issue: 1

Pages: 106-126

Article

Publisher ID: worlrevipoliecon.7.1.0106

DOI: 10.13169/worlrevipoliecon.7.1.0106

SO-VID: 9d4d4388-b454-448b-96e5-edab5bf3d978

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History

References

Arrighi, G. 1994. The Long Twentieth Century: Money, Power, and the Origins of Our Times . London: Verso.
Bin, D. 2014. “The Class Character of Macroeconomic Policies in Brazil of the Real.” Critical Sociology 40 (3): 431–49.
Bin, D. 2015. “Fiscal Superstructure and the Deepening of Labour Exploitation.” Capital & Class 39 (2): 221–41.
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Carcanholo, R. A., and P. Nakatani. 2001. “Capital Especulativo Parasitario versus Capital Financiero.” Problemas del Desarrollo 32 (124): 9–31.
Corbridge, S. 1993. Debt and Development . Oxford: Blackwell.
Crouch, C. 2011. The Strange Non-death of Neoliberalism . Cambridge: Polity.
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Comments

Comment on this article

[1] Arrighi, G. 1994. The Long Twentieth Century: Money, Power, and the Origins of Our Times . London: Verso.

[2] Bin, D. 2014. “The Class Character of Macroeconomic Policies in Brazil of the Real.” Critical Sociology 40 (3): 431–49.

[3] Bin, D. 2015. “Fiscal Superstructure and the Deepening of Labour Exploitation.” Capital & Class 39 (2): 221–41.

[4] Bowles, S., D. M. Gordon, and T. E. Weisskopf. 1990. After the Waste Land: A Democratic Economics for the Year 2000 . Armonk: M.E. Sharpe.

[5] Boyer, R. 1999. “Estado, Mercado e Desenvolvimento: Uma Nova Síntese para o Século XXI?” Economia e Sociedade 8 (1): 1–20.

[6] Carcanholo, R. A., and P. Nakatani. 2001. “Capital Especulativo Parasitario versus Capital Financiero.” Problemas del Desarrollo 32 (124): 9–31.

[7] Corbridge, S. 1993. Debt and Development . Oxford: Blackwell.

[8] Crouch, C. 2011. The Strange Non-death of Neoliberalism . Cambridge: Polity.

[9] Desai, R. 2013. Geopolitical Economy: After US hegemony, Globalization and Empire . London: Pluto Press.

[10] Desai, R., and A. Freeman. 2011. “Value and Crisis Theory in the ‘Great Recession.’” World Review of Political Economy 2 (1): 35–47.

[11] Deutschmann, C. 1996. “Money as a Social Construction: On the Actuality of Marx and Simmel.” Thesis Eleven 47 (1): 1–19.

[12] Dufour, M., and Ö. Orhangazi. 2007. “International Financial Crises: Scourge or Blessings in Disguise?” Review of Radical Political Economics 39 (3): 342–50.

[13] Duménil, G., and D. Lévy. 2004. Capital Resurgent: Roots of the Neoliberal Revolution . Cambridge, MA: Harvard University Press.

[14] Duménil, G., and D. Lévy. 2011. The Crisis of Neoliberalism . Cambridge, MA: Harvard University Press.

[15] Fine, B. 2001. “The Continuing Imperative of Value Theory.” Capital & Class 25 (3): 41–52.

[16] Foster, J. B., and F. Magdoff. 2009. The Great Financial Crisis: Causes and Consequences . New York: Monthly Review Press.

[17] Frieden, J. A. 1991. “Invested Interests: The Politics of National Economic Policies in a World of Global Finance.” International Organization 45 (4): 425–51.

[18] Frieden, J. A. 2006. Global Capitalism: Its Fall and Rise in the Twentieth Century . New York: W.W. Norton.

[19] Harvey, D. 2005. A Brief History of Neoliberalism . New York: Oxford University Press.

[20] Harvey, D. 2006. Spaces of Global Capitalism: Towards a Theory of Uneven Geographical Development . London: Verso.

[21] Harvey, D. 2010. The Enigma of Capital: And the Crises of Capitalism . New York: Oxford University Press.

[22] Hermann, J. 2002. “A Macroeconomia da Dívida Pública: Notas sobre o Debate Teórico e a Experiência Brasileira Recente.” Cadernos Adenauer 3 (4): 41–70.

[23] Hilferding, R. (1910) 1981. Finance Capital: A Study of the Latest Phase of Capitalist Development . London: Routledge & Kegan Paul.

[24] Ingham, G. 1998. “On the Underdevelopment of the ‘Sociology of Money.’” Acta Sociologica 41 (1): 3–18.

[25] Jessop, B. 2010. “The ‘Return’ of the National State in the Current Crisis of the World Market.” Capital & Class 34 (1): 38–43.

[26] Krippner, G. R. 2005. “The Financialization of the American Economy.” Socio-Economic Review 3 (2): 173–208.

[27] Krippner, G. R. 2011. Capitalizing on Crisis: The Political Origins of the Rise of Finance . Cambridge, MA: Harvard University Press.

[28] Lapavitsas, C., ed. 2012. Financialization in Crisis . Chicago: Haymarket.

[29] Li, M. 2004. “After Neoliberalism: Empire, Social Democracy, or Socialism?” Monthly Review 55 (8): 21–36.

[30] Mandel, E. 1990. “Introduction.” In Capital , vol. 1, edited by K. Marx, 11–86. London: Penguin.

[31] Marx, K. (1890) 1990. Capital , vol. 1. London: Penguin.

[32] Marx, K. (1894) 1991. Capital , vol. 3. London: Penguin.

[33] Morais, L., A. Saad-Filho, and W. Coelho. 1999. “Financial Liberalisation, Currency Instability and Crisis in Brazil: Another Plan Bites the Dust.” Capital & Class 23 (2): 9–14.

[34] Nakatani, P., and R. Herrera. 2007. “The South Has Already Repaid Its External Debt to the North: But the North Denies Its Debt to the South.” Monthly Review 59 (2): 31–36.

[35] Paulani, L. 2008. Brasil Delivery: Servidão Financeira e Estado de Emergência Econômico . São Paulo: Boitempo.

[36] Pochmann, M. 2012. Nova Classe Média? O Trabalho na Base da Pirâmide Social Brasileira . São Paulo: Boitempo.

[37] Potter, B. 2007. “Constricting Contestation, Coalitions, and Purpose: The Causes of Neoliberal Restructuring and Its Failures.” Latin American Perspectives 34 (3): 3–24.

[38] Poulantzas, N. 1973. “On Social Classes.” New Left Review I/78: 27–54.

[39] Poulantzas, N. 1978. Classes in Contemporary Capitalism . London: Verso.

[40] Preda, A. 2007. “The Sociological Approach to Financial Markets.” Journal of Economic Surveys 21 (3): 506–33.

[41] Przeworski, A. 1985. Capitalism and Social Democracy . Cambridge: Cambridge University Press.

[42] Przeworski, A. 1998. “Deliberation and Ideological Domination.” In Deliberative Democracy , edited by J. Elster, 140–60. Cambridge: Cambridge University Press.

[43] Rassel, G. R. 2005. “Public Debt and Stability.” In Handbook of Public Sector Economics , edited by D. Robbins, 323–73. Boca Raton: Taylor & Francis.

[44] Rocha, G. M. 1994. “Redefining the Role of the Bourgeoisie in Dependent Capitalist Development: Privatization and Liberalization in Brazil.” Latin American Perspectives 21 (1): 72–98.

[45] Rocha, G. M. 2002. “Neo-dependency in Brazil.” New Left Review 16: 5–33.

[46] Saad-Filho, A. 2010. “Crisis in Neoliberalism or Crisis of Neoliberalism?” Socialist Register: The Crisis This Time 47: 242–59.

[47] Salama, P. 1978. “Etat et Capital. L'Etat Capitaliste comme Abstraction Réelle.” Critiques de l'Économie Politique. Nouvelle Série 7–8: 224–61.

[48] Salama, P. 1998. “De la Finance à la Flexibilité en Amérique Latine et en Asie du Nord et du Sud-Est.” Revue Tiers Monde 39 (154): 425–50.

[49] Vernengo, M. 2006. “Technology, Finance, and Dependency: Latin American Radical Political Economy in Retrospect.” Review of Radical Political Economics 38 (4): 551–68.

[50] Wallerstein, I. 2013. “Structural Crisis, or Why Capitalists May no Longer Find Capitalism Rewarding.” In Does Capitalism Have a Future? , edited by I. Wallerstein, R. Collins, M. Mann, G. Derluguian, and C. Calhoun, 9–35. New York: Oxford University Press.

[51] Wilson, H. T. 2002. Capitalism after Postmodernism: Neo-conservatism, Legitimacy and the Theory of Public Capital . Leiden: Brill.

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