A third path: corporatism in Brazil and Portugal
In: Histories of Economic Life Series v.4
In: Histories of economic life
"A transnational history of corporatism-a "third path" between capitalism and communism-centered on mid-twentieth century Brazil. Following the First World War, there was a widespread feeling that the unchecked free-market competition had given rise to financial crisis, social unrest, and chronic underdevelopment. With people and governments across the world looking for an alternative to laissez-faire capitalism, Brazil took a central role in experimenting with a "third path" between capitalism and communism: corporatism. Remaking Capitalism: A Global History of Corporatism in Brazil, 1920s-1960s argues that corporatism transformed the Brazilian state into an agent of economic development, and it explains why it matters that this transformation was engineered under an authoritarian regime. Melissa Teixeira incorporates wide-ranging legal, economic, and cultural sources to document the process of state-building from the perspective of government ministries and grocery markets alike from 1917 to the 1950s. During the Getulio Vargas regime (1930-45), especially, the state took an unprecedented role in controlling social pressures and economic growth via wage and price agencies, labor tribunals and technical councils. Teixeira looks beyond categorical authoritarianism to explain how corporatism constituted an early experiment with the mixed economy as a path to development, combining state planning with a market economy. Corporatism, she shows, generated a model of development dependent on uneven and unequal citizenship, in which economic interests-and not individuals-organized and petitioned through the state. With Brazil at the center of this story of economic experimentation, Remaking Capitalism centers the Global South in the longer history of the production of economic thought. Drawing comparisons with the United States, Italy, and Portugal, Teixeira offers a transnational history of this important interwar attempt to create a third way between capitalism and communism."
In: Histories of Economic Life Series v.4
In: Histories of Economic Life 4
How Brazil and Portugal experimented with corporatism as a "third path" between laissez-faire capitalism and communism Following the Great Depression, as the world searched for new economic models, Brazil and Portugal experimented with corporatism as a "third path" between laissez-faire capitalism and communism. In a corporatist society, the government vertically integrates economic and social groups into the state so that it can manage labor and economic production. In the 1930s, the dictatorships of Getúlio Vargas in Brazil and António de Oliveira Salazar in the Portuguese Empire seized upon corporatist ideas to jump-start state-led economic development. In A Third Path, Melissa Teixeira examines these pivotal but still understudied initiatives.What distinguished Portuguese and Brazilian corporatism from other countries' experiments with the mixed economy was how Vargas and Salazar dismantled liberal democratic institutions, celebrating their efforts to limit individual freedoms and property in pursuit of economic recovery and social peace. By tracing the movement of people and ideas across the South Atlantic, Teixeira vividly shows how two countries not often studied for their economic creativity became major centers for policy experimentation. Portuguese and Brazilian officials created laws and agencies to control pricing and production, which in turn generated new social frictions and economic problems, as individuals and firms tried to evade the rules. And yet, Teixeira argues, despite the failings and frustrations of Brazil's and Portugal's corporatist experiments, the ideas and institutions tested in the 1930s and 1940s constituted a new legal and technical tool kit for the rise of economic planning, shaping how governments regulate labor and market relations to the present day
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