Bolsa Familia

Brazil: The Perils of Commodity Driven Inclusive Development

In this entry, Teichman discusses the Brazilian crisis, drawing on some of the ideas developed in The Politics of Inclusive Development. Policy, State Capacity and Coalition Building, 2016. (Link to publisher).

Brazil appears generously endowed with attributes that should contribute to the achievement of equitable and inclusive development: its ample agricultural land and mineral wealth affords a wide array of commodity exports while the country’s a large domestic market can support the development of industry and manufacturing. Nevertheless, Brazil’s historical development trajectory has been far from inclusionary, involving high levels of inequality, persisting poverty (reduced substantially only fairly recently), and exclusion. In the early 2000s, the World Bank identified the social exclusion of blacks, children, youth and indigenous people as one of the country’s most pressing development challenges (1). Brazil has had historically high levels of socioeconomic inequality, a feature sometimes linked to a dependence on commodity exports—one of the implications of the so-called resource curse. However, inequality and exclusion also arise from a history of highly unequal political power relations and the operation of exclusionary institutions.