Industrial competitiveness in Brazil ten years after economic liberalization
This article examines the nature and extent of the changes in
Brazilian industry after ten years of economic liberalization. The article
demonstrates that most structural features of Brazilian industry
remain unchanged except in the management of production
processes and in the ownership structure of firms, as rationalization
and inward internationalization became generalized processes.
Brazil may face a development paradox in the years to come.
History suggests that local capital and innovation capabilities have
been outstanding features of countries successful in achieving sustained
economic development. If internationalization of ownership is
to remain and local innovation capabilities are to be pursued, then
Brazilian private and public policy makers must depart from
established policy practices and seek new ways of regulating and
inducing firms towards local value creation.