The two forms of capitalism: developmentalism and economic liberalism
ABSTRACT This paper argues that the state and the market are the main institutions regulating capitalism, and, correspondingly, that the form of the economic and political coordination of capitalism will be either developmental or liberal. It defines the developmental state, relates it to the format...
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| Format: | Article |
| Language: | English |
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Editora 34
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| Series: | Brazilian Journal of Political Economy |
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| Online Access: | http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572017000400680&lng=en&tlng=en |
| _version_ | 1818488660768587776 |
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| author | LUIZ CARLOS BRESSER-PEREIRA |
| author_facet | LUIZ CARLOS BRESSER-PEREIRA |
| author_sort | LUIZ CARLOS BRESSER-PEREIRA |
| collection | DOAJ |
| description | ABSTRACT This paper argues that the state and the market are the main institutions regulating capitalism, and, correspondingly, that the form of the economic and political coordination of capitalism will be either developmental or liberal. It defines the developmental state, relates it to the formation of a developmental class coalition, and notes that capitalism was born developmental in its mercantilist phase, turned liberal in the nineteenth century, and, after 1929, became once again developmental, but, now, democratic and progressive. All industrial and capitalist revolutions took place within the framework of developmentalism, whereby the state coordinates the non-competitive sector of the economy and the five macroeconomic prices (which the market is unable to make “right”), while the market coordinates the competitive sector. In the 1970s, a crisis opened the way for a short-lived and reactionary form of capitalism, neoliberalism or rentier-financier capitalism. Since the 2008 Global Financial Crisis, the neoliberal hegemony has come to an end, and we are now experiencing a period of transition. |
| first_indexed | 2024-12-10T16:54:05Z |
| format | Article |
| id | doaj.art-23b862b0adde45ae8abf4546c28d84d5 |
| institution | Directory Open Access Journal |
| issn | 1809-4538 |
| language | English |
| last_indexed | 2024-12-10T16:54:05Z |
| publisher | Editora 34 |
| record_format | Article |
| series | Brazilian Journal of Political Economy |
| spelling | doaj.art-23b862b0adde45ae8abf4546c28d84d52022-12-22T01:40:48ZengEditora 34Brazilian Journal of Political Economy1809-453837468070310.1590/0101-31572017v37n04a02S0101-31572017000400680The two forms of capitalism: developmentalism and economic liberalismLUIZ CARLOS BRESSER-PEREIRAABSTRACT This paper argues that the state and the market are the main institutions regulating capitalism, and, correspondingly, that the form of the economic and political coordination of capitalism will be either developmental or liberal. It defines the developmental state, relates it to the formation of a developmental class coalition, and notes that capitalism was born developmental in its mercantilist phase, turned liberal in the nineteenth century, and, after 1929, became once again developmental, but, now, democratic and progressive. All industrial and capitalist revolutions took place within the framework of developmentalism, whereby the state coordinates the non-competitive sector of the economy and the five macroeconomic prices (which the market is unable to make “right”), while the market coordinates the competitive sector. In the 1970s, a crisis opened the way for a short-lived and reactionary form of capitalism, neoliberalism or rentier-financier capitalism. Since the 2008 Global Financial Crisis, the neoliberal hegemony has come to an end, and we are now experiencing a period of transition.http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572017000400680&lng=en&tlng=enCapitalismdevelopmentalismeconomic liberalismrentier-financier capitalism |
| spellingShingle | LUIZ CARLOS BRESSER-PEREIRA The two forms of capitalism: developmentalism and economic liberalism Brazilian Journal of Political Economy Capitalism developmentalism economic liberalism rentier-financier capitalism |
| title | The two forms of capitalism: developmentalism and economic liberalism |
| title_full | The two forms of capitalism: developmentalism and economic liberalism |
| title_fullStr | The two forms of capitalism: developmentalism and economic liberalism |
| title_full_unstemmed | The two forms of capitalism: developmentalism and economic liberalism |
| title_short | The two forms of capitalism: developmentalism and economic liberalism |
| title_sort | two forms of capitalism developmentalism and economic liberalism |
| topic | Capitalism developmentalism economic liberalism rentier-financier capitalism |
| url | http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572017000400680&lng=en&tlng=en |
| work_keys_str_mv | AT luizcarlosbresserpereira thetwoformsofcapitalismdevelopmentalismandeconomicliberalism AT luizcarlosbresserpereira twoformsofcapitalismdevelopmentalismandeconomicliberalism |