chapter  6
10 Pages

The new developmentalism

WithLuiz Carlos Bresser-Pereira

The new developmentalism which began to emerge in Latin America in the 2000s was a response both to these demands and to the failure of the Washington Consensus and, more broadly, of the 30 Neoliberal Years of Capitalism. In 2003 author introduced the concept of the new developmentalism, placing it in opposition both to the Washington Consensus and to the old developmentalism. The old developmentalism was applied to countries that were beginning their industrial revolution, the neoliberal orthodoxy aims to be applicable to all kinds of countries. Both the old developmentalism and the new developmentalism assign a strategic role to the state in defining and implementing, jointly with society, a national developmental strategy, the neoliberal orthodoxy limits the role of the state to ensuring property rights, contracts and antitrust enforcement. While the liberal-orthodox strategy is rarely compatible with long-term growth, the new-developmental strategy suggests a way to achieve that goal, but it does not guarantee success.