Economic Growth, Inequality and Crony Capitalism

The Case of Brazil
1. Auflage 2022
ISBN: 978-0-367-51702-1
Verlag: Routledge

Buch, Englisch, 222 Seiten, Format (B × H): 156 mm x 234 mm, Gewicht: 348 g

Reihe: Routledge Studies in the Modern World Economy

Researchers in international development have long argued that the high costs of doing business harms prosperity in developing countries, a claim that invites the question of why governments impose these costs and why societies fail to enact reforms reducing them. This book seeks to answer the question by looking at the case of Brazil, a large and highly unequal economy riddled with state-imposed transaction costs. By delving into the political dynamics underlying a costly business environment, this book provides the reader with novel insights into crony capitalism and inequality. It argues that the root cause of a costly business environment is the collusion between political actors, bureaucrats and business insiders. Politicians and bureaucrats relish their discretion over rules and policies as a power resource, since they can increase or decrease the costs of doing business faced by firms and sectors. Business insiders collude with government agents to access the loopholes that decrease the cost of doing business, thus gaining a competitive edge over outsiders. This gives the insiders weaker preferences for reforms that could decrease the overall cost of doing business. By pursuing their self-interest, these actors create a low-level equilibrium that perpetuates crony capitalism and inequality to the detriment of overall prosperity. The book makes its case with a sophisticated combination of formal modeling, quantitative analyses and in-depth case studies of tax policy and of the pharmaceutical and agricultural sectors in Brazil. Observers have declared the need for reforms that improve the business environment in developing countries for a long time. However, the findings presented in this book suggest they might have underestimated the challenge ahead. Scholars and policy-makers in international development, business politics and political economy will be interested in the innovative perspective of this book.

Zielgruppe

Postgraduate and Undergraduate

Autoren/Hrsg.

Rocha Limoeiro, Danilo

Fachgebiete

• Wirtschaftswissenschaften Betriebswirtschaft Unternehmensfinanzen Internationales Rechnungswesen
• Wirtschaftswissenschaften Volkswirtschaftslehre Wirtschaftspolitik, politische Ökonomie
• Wirtschaftswissenschaften Volkswirtschaftslehre Volkswirtschaftslehre Allgemein Wirtschaftstheorie, Wirtschaftsphilosophie
• Wirtschaftswissenschaften Finanzsektor & Finanzdienstleistungen Finanzsektor & Finanzdienstleistungen: Allgemeines
• Wirtschaftswissenschaften Betriebswirtschaft Management
• Wirtschaftswissenschaften Betriebswirtschaft Unternehmensfinanzen Betriebliches Rechnungswesen
• Wirtschaftswissenschaften Wirtschaftssektoren & Branchen Fertigungsindustrie Pharmaindustrie
• Wirtschaftswissenschaften Wirtschaftssektoren & Branchen Primärer Sektor Agrarökonomie, Ernährungswirtschaft
• Wirtschaftswissenschaften Volkswirtschaftslehre Internationale Wirtschaft Entwicklungsökonomie & Emerging Markets

Inhaltsverzeichnis

1 Cronyism, growth and inequality 2 Crony capitalism actors, continuity and change 3 Industry leaders and political engagement 4 The politics of taxation in Brazil 5 Pharmaceuticals 6 Agriculture 7 Conclusion

Über Autor(innen)

Danilo Rocha Limoeiro holds a Ph.D. in Political Science from MIT and a Master’s degree with distinction from Oxford University. Currently, he is the co-founder of Turivius, a company dedicated to helping developing countries decrease bureaucracy through technology.