The Socio-economic Reforms and Results of Brazil in the New Millennium, 2003-2010
Date Issued
2011
Date
2011
Author(s)
Yu, Pei-Jian
Abstract
The purpose of this article is to discuss the socio-economic reforms and results that Lula had done during his presidency. Issues of Brazil''s state role and economic reform are also discussed. This article mainly holds 2 analytic framework:1. Relationship of mutual intersection of economic and government characters；2. Economy is at the same time embedded in social totality of Brazil and neo-liberal globalization. This thesis is to analyze the key point of Lula''s economic and social reform by the social embeddedness conceptual framework, and limitations of recent Brazilian economic democracy and social democracy.
From 1964 to 1980, Brazil has entered the second phase of import-substitution industrialization, and has also accepted the structural reform plan provided by international economic organizations such as World Bank. This greatly imports foreign investments and technology, in order to accelerate economic growth. Debt development strategy indeed accomplished the “Brazilian Economic Miracle”, but which also invoked the external debt crisis that occurred in 1980. After Cardoso was elected President in 1995, he adopted the neo-liberal route, promoted various important economic and social strategies. In the economic aspect, the economic reform is mainly financial liberalization, which also adopts new development modes based on market functions and modes that lessen government roles. This includes cutting down public expenditure, attract foreign investments, balancing exports and imports, and stabilizing commodity price etc. However, unemployment, social inequality, poverty, trade deficit, and issues coming from external debt interests still exist.
After Lula was elected as President in 2003 during the new millennium, he continuously adopted the neo-liberal economic strategy. In 2007, he proposed the neo-developmentalist strategy, intending to make suitable redistributing strategy, to improve economic and social development. He also intends to rope in local capitalists and foreign capital to accomplish economic development. However, the issues of disparity between the rich and the poor and poverty have still not been solved. During Lula''s role, he pays attention to social reform, putting the reform key point on Bolsa Familia Program, the land reform, education, employment and social security. The results of the reform include that the middle class population increases, Bolsa Familia Program benefits ¼ of the national population, children of poor families can receive education, and the poverty class gets the opportunity to improve their social status. Also, the implementation of Bolsa Familia Program also directly influences the enrollment rate of children and teenagers. Land reform also benefits farmers that do not own any land and establishes an indigenous residential area. The result of employment reform includes that the labor-force participation rate increases, working class besides receives a raise in their minimum wage, employees with formal contract increase, unstable unemployment rate decrease, average real income of the 6 major metropolitan areas increases, social security contribution rate of hired laborers increases. Furthermore, due to state finance considerations, Lula also conducts social protection reform. However, if Lula''s the socio-economic reform achievement is inspected by the economic democratic and social democratic aspects, there are still many limitations. There are still expectations of continuous future socio-economic democratic reform of Brazil.
The research findings of this thesis include: 1. Brazil''s government role and economic development benefit each other, with the country aggressively stepping in between economy and society；2. Brazil''s economy is embedded in the social totality and external neo-liberal globalization. Looking to the future, the whole economic development of Brazil must be embedded in the social totality. Therefore, the continuing growth of Brazilian economy besides having to depend on enterprise investments, middle class and the production and consumption of all laborers are of equal importance. How national strategy completely incorporates to the needs of the middle class and all labor, is the issue that President Rousseff must face when she comes into power.
Subjects
Brazil
Lula government
Socio-economic reforms
Bolsa Familia
State role
Type
thesis
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