The research will carry out a multidisciplinary socio-economic approach to the phenomenon of 'State Capitalism' in Brazil. The term is an expression that designates the mechanism of a political...Show moreThe research will carry out a multidisciplinary socio-economic approach to the phenomenon of 'State Capitalism' in Brazil. The term is an expression that designates the mechanism of a political-economic nature that manifests itself in the relations established between the State, through its public agents and high-level politicians, and large private economic actors (or business groups). It is about Brazilian-style capitalism, with the term crony capitalism as a correspondent, a phenomenon that has been the object of interdisciplinary studies, notably in the areas of Political Sciences, Economics and Law. In this context, the main gaps and bottlenecks that favor or stimulate the use of state- owned companies and banks as institutional channels for shady negotiations, which involve the exchange of favors and distribution of privileges, engendered between the ruling political class and, preponderantly, large private capital, will be object of deep analysis. Such insidious relations may culminate in reverse income transfer, loss of economic efficiency due to misallocation of scarce economic resources, constitution of oligopolies and market reserves, misalignment with the State's social policy projects, and increase in opportunity costs. The patrimonialist and personalist culture underlying the economic and social relations in Brazil has as a probable historical element the model of colonization and extractive exploitation imposed by the Portuguese colonizers, through the formation of the first government structures and the bureaucratic institutional design conceived by the colonizers in their exploratory enterprise. In addition to the historical and cultural value of understanding the phenomenon of 'capitalism of ties' existing in Brazil, as a legacy of the model of exploitation established in this country, its relevant economic and social impacts on public management and Brazilian politics are highlighted. With greater importance, the issues related to governance in state-owned companies and their effects on the political and economic spheres, which constantly lead to the destabilization and weakening of the republican state system, with impacts on representative democracy itself and on the implementation of state policies in the medium and long term. Direct effects can thus be observed in the level of trust of citizens in their public managers and political representatives, undermined by the personalistic and patrimonialist management of large companies and state-owned banks, by the opacity in the process of accountability to society in relation to the investment policies of these companies and by the promiscuous relationships that often permeate the negotiations between these companies, the ruling political class and its support base.Show less
