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Rethinking the Political Economy of Import Substitution Industrialization in Brazil: A Clientelist Model of Development Policymaking

Published online by Cambridge University Press:  02 January 2018

Mona Lyne
Mona Lyne*
Affiliation:
University of Missouri, Kansas City. lynem@umkc.edu
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Abstract

Import substitution industrialization was the postwar development policy of choice in Latin America, and the diagnosis of its weaknesses heavily influenced subsequent policy recommendations. Yet few attempts have been made to test the predominant sectorally based explanation of ISI's failings against alternatives. This article develops a model of direct (clientelistic) linkages between politicians and their supporters and tests it against the standard sectoral model based on indirect linkages. Examining three features of process (economic sector influence, legislative voting, and exchange rate policy) and analyzing the distributional implications of the overall policy in Brazil, this article demonstrates that a clientelist model provides a more complete and coherent account of the empirical record. By demonstrating that variation in linkage type alters the political constraints on policy choice, the analysis also provides new insight into enduring puzzles, including the better performance in East Asia.

Type
Research Article
Information
Latin American Politics and Society , Volume 57 , Issue 1 , Spring 2015 , pp. 75 - 98
Copyright
Copyright © University of Miami 2015

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