ABSTRACT
The chapter examines Brazilian thinking on government policy toward local industry, circa 1840–1930. Contrary to a notion commonly found in the literature, it is shown that the period can hardly be described as an “age of liberalism” in Brazil. In the monarchy (1822–1889), most relevant policy makers favoured protectionist policies, specifically in regard to the fixation of import tariffs. More important, tariff policy was motivated not only by fiscal considerations, as frequently argued; protection of domestic industry via higher tariffs was forcefully defended by a rationale that foreshadowed pro-industrialisation arguments later expounded, in the second half of the twentieth century, by some Latin-American authors, as Prebisch and Furtado. The influence of pro-industry thinking on government policy gained force after the 1880s; in the republican period, after 1889, it was felt more strongly in the Legislative. The 1920s may be seen as a turning point, as decisions of the Executive started to clearly reflect protectionist ideas.
