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Download e-book for iPad: Engines of Growth: The State and Transnational Auto by Helen Shapiro

By Helen Shapiro

ISBN-10: 0511572042

ISBN-13: 9780511572043

ISBN-10: 0521025001

ISBN-13: 9780521025003

ISBN-10: 052141640X

ISBN-13: 9780521416405

Within the Nineteen Fifties, Brazil prohibited motor vehicle imports and compelled transnational vehicle businesses both to desert the marketplace or manufacture cars in the state. even though at present contending techniques to fiscal improvement might recommend that this kind of industrialization coverage might fail within the political-economic context of postwar Brazil, the plan was once profitable in accordance with a number of standards. The Brazilian car could develop into the most important within the outer edge. The publication explains the commercial and political motivations at the back of the plan, and why Brazil depended on international agencies to do the task. It files the bargaining strategy among the Brazilian govt and transnational companies, estimates the fee incurred by way of the govt. as a result of plan, and gives new archival proof that exhibits that businesses do not have invested with out executive strain. It argues that the present, polarized debate at the position of the nation in fiscal improvement needs to turn into extra nuanced, because the Brazilian car case means that the effectiveness of kingdom coverage can differ enormously throughout sectors and through the years.

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Extra info for Engines of Growth: The State and Transnational Auto Companies in Brazil

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Source: Presidencia da Republica, Conselho do Desenvolvimento, lndustrias de Base, vol. 1 (Rio de Janeiro, 1958). Why Auto? 3. Motor Vehicle Imports, 1925-1959 (units) Year 1925 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 Passenger cars 28,600 26,000 16,500 27,900 29,400 1,700 2,900 1,200 5,100 7,800 9,600 9,900 14,400 11,800 12,000 13,900 12,800 2,700 0 0 100 9,637 28,794 31,751 21,390 15,717 47,274 30,494 6,363 4,226 1,536 997 2,617 8,580 27,087 Commercial vehicles 15,100 7,000 13,100 17,500 24,500 300 1,600 1,400 3,700 7,400 7,900 9,000 9,100 11,100 9,700 9,600 12,400 5,100 700 2,100 7,800 18,732 37,035 36,148 19,503 33,010 62,228 49,625 6,719 26,312 9,318 15,152 31,853 28,996 53,926 Jeeps 5,755a 3,823 6,236 1,744 2,394 9,292 10,447 10,870 a Previously with trucks.

But weak economies or those confronting a recessive international economy are more constrained. Stronger underlying economic conditions provide more latitude for policy manipulation and, ultimately, for policy mistakes. The nature of the inefficiency and the distribution of its cost are also important. An inefficiently produced productive input has different economic ramifications than a similar consumer good. Whether the state is able to pass along the cost of its subsidization to the private sector or to consumers is also important, particularly for a fiscally constrained state like Brazil.

Meira used the encounter as an opportunity to convince Kubitschek that automobiles should be included in his proposed Target Plan, a statesponsored industrialization program. At a political rally later that same day, Kubitschek tested the idea by promising that, if elected, he would initiate production of a national automobile. The idea was received enthusiastically. 1 Despite the haphazard route by which Kubitschek came to include autos among his campaign pledges, the industry would become central to his industrialization program.

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Engines of Growth: The State and Transnational Auto Companies in Brazil by Helen Shapiro

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