Download Engines of Growth: The State and Transnational Auto by Helen Shapiro PDF

By Helen Shapiro

Within the Fifties, Brazil prohibited motor vehicle imports and compelled transnational vehicle businesses both to desert the industry or manufacture autos in the kingdom. even if presently contending methods to monetary improvement might recommend that this sort of industrialization coverage could fail within the political-economic context of postwar Brazil, the plan used to be profitable in keeping with a number of standards. The Brazilian car may turn into the most important within the outer edge. The booklet explains the industrial and political motivations at the back of the plan, and why Brazil trusted international companies to do the activity. It records the bargaining approach among the Brazilian executive and transnational corporations, estimates the price incurred by way of the govt as a result plan, and gives new archival facts that exhibits that organizations should not have invested with out executive strain. It argues that the present, polarized debate at the position of the kingdom in fiscal improvement needs to develop into extra nuanced, because the Brazilian vehicle case means that the effectiveness of kingdom coverage can range 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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Trade expansion continued to look bleak in the mid-1950s when Europe was rebuilding and its currencies were not yet fully convertible. 43 In response, postwar governments adopted import-substituting industrialization strategies, in which motor vehicles played a central role. The decision to produce motor vehicles was arrived at incrementally and reflected a growing consensus among policymakers, economists, and sectors of the military on Brazil's need to industrialize. Policies to promote a domestic industry first emerged in response to the country's postwar balance-of-payments problems.

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.

2. 478 11,478 20,414 402 14,905 51,160 5,456 33,768 147,231 1,056 26,767 146,901 721 27,484 104,884 635 67,621 139,577 8,345 71,378 276,523 9,628 60,640 261,411 219 12,583 64,675 620 13,891 89,027 529 14,145 51,765 Jeeps were included with trucks until 1952. 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.

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