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Crony Capitalism and its Intepretations: State-Business Ties in Brazil

Latin America
Political Economy
Political Leadership

Abstract

The mobilisation of the concepts of patrimonialism or cronyism requires great care as they tend to stimatize situations in the periphery while giving the impression that what they stand for (corruption, confusion between private and public sphere...) do not exist in so-called developed countries. In addition, to this, although patrimonialism has generated state capture by the elites in Brazil, another effect has also been these elites’ concern with the preservation of the state. Corporatism has also contributed in Brazil to regulate in an extremely efficient manner the interactions between business and the state, a central feature in the growth of capitalism from the 1930s onwards.