New Developmentalism Under Neoliberalism: The Case of Brazil

This study provides a comprehensive analysis of Brazil's socioeconomic policies and growth models under the Brazilian Workers Party from 2003 to 2016. It examines two key growth models implemented in this process: namely, primary-export led and domestic consumption-oriented growth models. By utilizing official statistics and secondary sources, it shows that primary exports were the driving force behind economic growth in Brazil until 2006. It also indicates that after 2006, despite not being the main facilitator of economic growth, the exporting sectors continued to support the current account balance in Brazil, thanks to increasing global demand and prices for Brazilian primary commodities. Nevertheless, the post-2006 period in Brazil witnessed an increasing weight of domestic consumption in growth dynamics. This mainly results from expanding social transfers and income distribution programs, growing employment, and increasing minimum wages. The study demonstrates that Brazil's inclusive growth model was not sustainable due to the strong dependence of domestic accumulation on foreign capital inflows and external demand.