The New Developmentalsim and Conventional Orthodoxy Luiz Carlos Bresser-Pereira

This paper argues that the failure of the neo-liberal policies and reforms, here called ‘conventional orthodoxy’ in promoting macroeconomic stability and economic growth in Latin America opened room in each country for the rise of a national strategy of growth which the author calls ‘new developmentalism’.

This new developmentalism is export oriented, wants a strong market and a strong state, and therefore supports fiscal discipline aiming at positive public savings. It supports a liberal, social and republican nationalism. It differs strongly, however, from conventional orthodoxy because it rejects the growth strategy with foreign savings and the opening of capital accounts, supports administered exchange rate and believes that in Brazil a special strategy is required to overcome the high interest rate/appreciated currency which renders the Brazilian economy unstable.

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