Conventional Paths for New Challenges?: Change and Continuity in Economic Policy in Brazil

Brazil’s economic policy is facing far-reaching changes. The democratic transition was accompanied by a radical change toward an economic paradigm that is referred to as neoliberal in the country. This new paradigm was only partially compatible with the pre-existing structures. The study shows how specific social and economic path dependencies impede sustainable paradigm change and enable a reorientation toward long-term institutionalized patterns. At the moment, different paradigms are competing within Brazil’s political-economic discourse, and they have become the central topic of electoral campaigns and party competition. Whether or not a paradigm that has been successful in the short term may have a lasting effect on Brazil’s economic policy will depend on the extent to which it harmonizes with the existing socio-economic constellations.