Profitability and Distribution: The Origin of the Brazilian Economic and Political Crisis

2019 ◽  
Vol 47 (1) ◽  
pp. 115-133
Author(s):  
Adalmir Antonio Marquetti ◽  
Cecilia Hoff ◽  
Alessandro Miebach
Keyword(s):  
Economic Growth ◽  
Economic Crisis ◽  
Real Wage ◽  
Capital Accumulation ◽  
Political Support ◽  
Political Crisis ◽  
Private Capital ◽  
Poverty And Inequality ◽  
The Government ◽  
Negative Growth

The PT governments combined elements of developmentalism and neoliberalism in a contradictory construction, organizing a large political coalition of workers and capitalists that allowed expanding the real wage and reducing poverty and inequality while maintaining the gains of productive and financing capitals. The decline of profitability after the 2008 crisis broke the class coalition constructed during Lula’s administration. The Dilma Rousseff government adopted a series of fiscal stimuli for private capital accumulation with meager economic growth. After her reelection, the government implemented an austerity program that resulted in negative growth rates. With the deepening economic crisis and without political support, Rousseff was removed from power. Os governos do PT combinaram elementos de desenvolvimentismo e neoliberalismo em uma construção contraditória, organizando uma grande coalizão política de trabalhadores e capitalistas que permitiu expandir o salário real e reduzir a pobreza e a desigualdade, mantendo os ganhos dos capitais produtivos e financeiros. O declínio da lucratividade após a crise de 2008 quebrou a coalizão de classes construída durante o governo Lula. O governo Dilma Rousseff adotou uma série de estímulos fiscais para a acumulação de capital privado com escasso crescimento econômico. Após sua reeleição, o governo implementou um programa de austeridade que resultou em taxas de crescimento negativas. Com o aprofundamento da crise econômica e sem apoio político, Dilma foi afastada do poder.

scholarly journals Economic growth effect of private capital inflows: a structural VAR approach for Nigeria

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Friday Osemenshan Anetor
Keyword(s):  
Economic Growth ◽  
Forecast Error ◽  
Research Result ◽  
Structural Var ◽  
Capital Inflows ◽  
Growth Effect ◽  
Private Capital ◽  
Portfolio Investment ◽  
Content Type ◽  
The Government

Purpose The purpose of this paper is to examine the effect of shocks in the various components of private capital inflows on economic growth in Nigeria using quarterly data in the period 1986Q1–2016Q4. Design/methodology/approach The study employs the impulse response function and the forecast error variance decomposition of the structural vector autoregression (SVAR) model. Findings The research result shows that shocks in foreign direct investment (FDI) inflows and portfolio investment inflows have a positive and significant impact on economic growth in Nigeria. In addition, FDIs accounted for significant variation in the growth of the Nigerian economy followed by portfolio investments, while personal remittances exerted the least variation in growth. Practical implications The government should promote a favorable macroeconomic environment for existing and potential foreign investors to ensure the continued inflows of FDI and portfolio investment. Originality/value The novelty of this study lies in disaggregating private capital inflows and analyzing the effect of the shock of each component on the growth of the Nigerian economy using SVAR.

scholarly journals Disaster Impact, National Aid, and Economic Growth: Evidence from the 2008 Wenchuan Earthquake

2018 ◽  
Vol 10 (12) ◽  
pp. 4409 ◽  
Author(s):  
Renjie Zhao ◽  
Shihu Zhong ◽  
Aiping He
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Wenchuan Earthquake ◽  
Capital Accumulation ◽  
Empirical Studies ◽  
Policy Implications ◽  
Economic Recovery ◽  
Obvious Effect ◽  
2008 Wenchuan Earthquake ◽  
The Government

How disasters have affected economic growth has often been a subject for economic debate, and empirical studies of the experience in China are clearly inadequate. Using the panel data from 181 county-level cities in Sichuan province from 2003 to 2013, this paper investigates the direct and dynamic effects of the Wenchuan earthquake disaster on economic growth, as well as how national rescue affected postdisaster economic recovery. The econometric results show that earthquakes significantly reduce real GDP in the affected areas after controlling for the national rescue variables, and this negative effect exists in the affected area over a long time. In addition, our empirical findings suggest that the postdisaster national rescue can promote economic recovery in the affected areas by increasing government expenditure, improving traffic conditions, and enhancing the urbanization process and the level of industrialization. Besides, state financial aid has no obvious effect on the development of tertiary industries and the accumulation of human capital in affected areas. These results were found to be robust after applying several approaches to alleviate the potential endogeneity problem. Findings in this study carry several important policy implications. As well as providing national rescue to promote postdisaster reconstruction, the government should also develop policies that will provide direct aid funding to tertiary industries and boost postdisaster economic reconstruction and human capital accumulation, thus improving the efficiency of relief funding and reducing the long-term adverse effects of the disaster on economic growth.

From Disorder to Growth and Back: The Military Regime (1964–1984)

2016 ◽  
Author(s):  
Lee J. Alston ◽  
Marcus André Melo ◽  
Bernardo Mueller ◽  
Carlos Pereira
Keyword(s):  
Economic Growth ◽  
Social Inclusion ◽  
Import Substitution ◽  
External Debt ◽  
Political Support ◽  
Business Community ◽  
Political Rights ◽  
Military Government ◽  
The Government ◽  
The Military

This chapter discusses the military government and the belief in “developmentalism” which motivated the institutions put in place by the regime. Developmentalism rested on top-down technocratic planning and was a coalition between the military and the business community, both domestic and foreign. Import substitution policies along with state-led industrialization brought economic growth in the late 1960s and into the mid-1970s. But, the Brazilian miracle of the late 1960s and early 1970s began to sputter out, and, moreover, political rights became more constrained. The years of censorship and a closed political system sowed the seeds for a more open political order. Above all, the failure of the expansionist strategy of growth through import substitution accompanied by inflation and external debt became self-evident. Citizens also began to blame the government for not reducing economic and social inequality. The dominant belief that economic growth should precede social inclusion started losing political support.

Effect of Government Spending Policies on Education on Human Capital Accumulation and Economic Growth in the Middle East and North Africa (MENA): أثر سياسات الإنفاق الحكومي على التعليم على مراكمة رأس المال البشري والنمو الاقتصادي في دول الشرق الأوسط وشمال إفريقيا (MENA)

2021 ◽  
Vol 5 (16) ◽  
pp. 65-90
Author(s):  
Emad Adnan Matyori Emad Adnan Matyori
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Middle East ◽  
North Africa ◽  
Government Spending ◽  
Capital Accumulation ◽  
Negative Impact ◽  
Positive Impact ◽  
Human Capital Accumulation ◽  
The Government

This study aims to estimates the effect of government spending on education and its policies on the accumulation of human capital and then economic growth, for this purpose, we use the econometric method, and employed the simultaneous equations model, for a sample of fourteen countries from the Middle East and North Africa (MENA) For the period (1980- 2019); The study concluded, in the first estimates stage of the model, that most of the government spending policies on education used in the study positively affect the accumulation of human capital, except, government spending policy on education at basic educational levels, which had a negative impact. And in the second estimates stage of the model, The study concluded, a positive impact of the accumulated human capital due to government spending on education and its policies on economic growth; Consequently, government spending policies on education positively affect economic growth through the channel of human capital accumulation, expressed in the composite index based on the Barrow- Lee database of average years of schooling for the working- age population, adjusted for the quality and return of education. The study made the following recommendations: interest to international education indicators data, as it is the basis for managing the educational system. Study more government spending policies on education to reveal its role in human capital accumulation and economic growth.: interest to human capital when formulating government policies, targeting its development, and increasing its contribution to GDP.

scholarly journals Capital Flows and Economic Growth: What Roles Does Trade Liberialisation Play?

2021 ◽  
Vol 65 (1) ◽  
pp. 26-44
Author(s):  
Soliu Adegboyega ◽  
◽  
Temidayo Akinbobola ◽  
Felix Ajayi ◽  
◽  
...  
Keyword(s):  
Economic Growth ◽  
Public Capital ◽  
Capital Inflows ◽  
Private Capital ◽  
Development Indicators ◽  
Secondary Sources ◽  
Distributed Lag ◽  
Interactive Relationship ◽  
Foreign Capital Inflows ◽  
The Government

This paper explores by re-examining to what extent trade liberalisation has contributed to the capital inflows (both the private capital inflows and public capital inflow) on economic growth; and their interactive relationship in Nigeria between 1985 and 2018. Time series for each of the variables were collected from secondary sources on yearly basis, extracted from World Development Indicators (WDI) and the variables were measured as percentage of GDP, while Autoregressive Distributed Lag (ARDL) technique is used to show the extent to which the variables were co-integrated and established that both private capital inflows and public capital inflows with the helps of trade liberalization inhibited economic growth in Nigeria. The study further revealed that the coefficient of error correction was negative and highly significant, as well as establishing long-term cointegration. Also, our study affirms partial existence of Bhagwati's hypothesis. Hence, the government needs to restructure and reengineer most of its trade policies, in order to significantly mpact various forms of foreign capital inflows, and subsequently enhance economic growth by creating an enabling economic environment to facilitate adequate inflows of capital inflows.

scholarly journals The new program of stimulation of economy of China

2012 ◽  
pp. 122-124
Author(s):  
I. A. Nasibov
Keyword(s):  
Economic Growth ◽  
Economic Crisis ◽  
Government Policy ◽  
National Economy ◽  
Critical Level ◽  
Chinese Government ◽  
Incentive Program ◽  
The Government ◽  
Economic Imbalances ◽  
Stimulation Of

Not only have the effects of the global financial and economic crisis provoked the slowdown in economic growth in China. A Chinese government policy was also aimed at cooling the economy to remove the existing socio-economic imbalances. As a result of the crisis and the actions of the government of China's economic growth fell to a critical level. In this situation, the government of China has decided to launch a new program to stimulate the national economy. However, this program is qualitatively different from the incentive program of 2008-2009.

scholarly journals THE ECONOMIC CRISIS AS A PREREQUISITE FOR REGIONAL SHIFTS IN THE ECONOMY OF JAPAN

2017 ◽  
pp. 127-133
Author(s):  
P. Makarenko
Keyword(s):  
Economic Growth ◽  
Financial Crisis ◽  
Economic Crisis ◽  
Global Financial Crisis ◽  
Small And Medium Enterprises ◽  
Technological Development ◽  
Real Estate Market ◽  
Negative Effects ◽  
Industrial Growth ◽  
The Government

In article analyzed the signs and consequences of the economic crisis in Japan, revealed a system of anti-crisis government measures to stimulate economic growth, the stock market and real estate market, public policy and social programs. Successful anti-crisis measures and the negative effects of regulatory policy in the fall of domestic and foreign markets were considered. We were analyzed three major economic crises: the post-war crisis, the crisis of the 90s, the 2008 financial crisis. The economic crisis of the early 90s had a very specific background; analysis and reflection of them are allowed to reduce the crisis of 2008. The first crisis was caused mainly by internal economic factors, and the second – the global financial crisis. Pre-crisis economic had certain market conditions. During export economy Japan generated industrial growth, increase a foreign production, results of direct investment. Japanese companies had pursued a policy of active promotion in Asian markets. Over the years 2002-2007 decline the consumer demand, and in 2008 there were the first signs of recession. Textile and chemical industry, general engineering, ferrous metallurgy, information and communication electronic equipment had reduced production and profits. After analyzing the current situation in the world markets, the Japanese government approved the “Complex strategic measures to overcome the crisis.” The government executed the following major steps: 1. Increase local and regional regulation; 2. Reduction of taxes; 3. Exchange and stock markets regulation; 4. Reduce military spending; 5. The increase in exports, business building in regional market centers; 6. Promote small and medium enterprises (SMEs); 7. Formation of innovative markets; 8. Development of logistics infrastructure; 9. Reduce energy dependence, changing sources of energy; 10. The reform of social policy; 11. The reform of regional policy and investment; 12. The development of tourism projects. The experience of Japan can be adapted a series of reforms: decentralization, solving demographic problems, increasing regional and international business, scientific and technological development, investment in infrastructure and trade logistics, tourism development. Successfully reforms and strategic location was allowed Japan to survive the economic crisis and achieve economic growth.

Spain: Weak Prospects for Growth

2011 ◽  
pp. 60-69
Author(s):  
G. Ponedelko
Keyword(s):  
Economic Growth ◽  
Economic Crisis ◽  
New Model ◽  
Eu Countries ◽  
The Government

The current financial and economic crisis has become a complete perfect surprise for the citizens and the government in Spain. By the end of 2009 it became evident that the magnitude, depth and duration of the crisis phenomena occurring in the country are significantly greater than in other EU countries. In such circumstances the Spanish government launched a search for a new model of economic growth.

Vested interests may block urgent tax reform in Jordan

2021 ◽  
Keyword(s):  
Economic Growth ◽  
Tax Evasion ◽  
Tax Reform ◽  
Living Standards ◽  
Economic Recovery ◽  
Political Crisis ◽  
Content Type ◽  
Vested Interests ◽  
Recent Developments ◽  
The Government

Significance It also looked at government-proposed amendments to another law aiming to reduce the scope for tax evasion in the Aqaba Special Economic Zone. Recent developments including the pandemic, an April political crisis between King Abdullah and his half-brother Prince Hamzah and now the Gaza conflict have highlighted popular dissatisfaction driven by economic grievances. Impacts Tourism should start to recover in late 2021, but revenue is unlikely to return to pre-pandemic levels until 2024 at the earliest. Forecast economic growth of 2-3% over the next four years leaves little scope for improvement in living standards. Without a strong economic recovery, the government will struggle to bring down an unemployment rate that has reached 24%.

Panama

2017 ◽  
Author(s):  
Guillermo Cruces ◽  
Gary S. Fields ◽  
David Jaume ◽  
Mariana Viollaz
Keyword(s):  
Economic Growth ◽  
International Economic ◽  
Latin America ◽  
Labour Market ◽  
Economic Crisis ◽  
Growth Rates ◽  
Growth Process ◽  
Temporary Increase ◽  
Poverty Indicators ◽  
Negative Growth

Between 2000 and 2012, Panama boasted the strongest economic growth in Latin America. The growth experience was not uniform: the 2000–2 period was marked by slow or negative growth rates, after which growth was exceptionally rapid. Although the international economic crisis of 2008 slowed the growth process down, it rebounded in the years following the crisis. Labour market indicators have clearly improved. The economic crisis led to a temporary increase in unemployment, a drop in the share of paid employees, and a rise in some poverty indicators; all these effects were reversed by the end of the period studied.

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