ABSTRACT
As Brazil has moved from abertura to democracy, a number of challenges resulting from the state-led modernization strategy of the face political leaders. Reconciling political control with growth-inducing state intervention in the economy has been one of the central dilemmas associated with state-led industrialization in many nations. Authoritarianism, repression of the unions, and destruction of the old political parties severely restricted the ability of organized interest groups to press demands through bureaucratic or party channels. Bureaucratic insulation and clientelism were not new to the Brazilian political system in 1956. The disintegration of Juscelino Kubitschek's syncretic solution to the problem of how to foster economic development in Brazil's political and ideological context contributed to the economic and political chaos that led to the military coup in 1964. The group centered at Superintendencia de Moeda e Credito favored trade liberalization, encouraging foreign investment, and limiting state intervention in the economy.
