A recent study underscores the critical role of involving workers and broader societal stakeholders in shaping Brazilian industrial policies to meet national development goals and serve the public interest. Researchers highlight that sectors like animal protein often prioritise corporate welfare over societal benefits due to limited involvement from civil society and labour unions in policy formulation and execution.

Analysis of industrial policy initiatives dating back to the mid-1990s reveals a direct correlation: policies that integrated input from labour unions and civil society demonstrated greater effectiveness. Government initiatives that imposed stricter conditions on private sector involvement demanding reciprocal societal contributions, yielded more favourable outcomes.

For instance, agreements within the meat industry, where labour unions held less influence and government funding primarily bolstered corporate growth, resulted in global competitiveness but limited gains for the public good. Conversely, sectors like automotive, where labour unions exerted more influence, saw policies align more closely with national development objectives, including targets for technological innovation and employment stability.

Published in the journal Development and Change, the study by Renato H. de Gaspi of Central European University and Pedro Perfeito da Silva of the University of Exeter underscores the significance of stakeholder engagement in shaping industrial policies across various sectors. It reveals substantial differences in policy outcomes influenced by the strength of labour unions and societal pressures.

Dr Perfeito da Silva emphasises the risk of industrial policies devolving into corporate welfare, advocating for inclusive policy discussions to ensure alignment with broader societal goals. He asserts that amidst global economic shifts, effective industrial planning must avoid business capture of state resources and instead leverage diverse stakeholder input.

Reflecting on historical shifts, the study notes that during Luis Inácio Lula da Silva’s presidency, increased influence from union leaders countered business dominance in policy negotiations, advocating for improved working conditions and greater nationalisation of production chains. This period highlighted the transformative potential of incorporating non-business stakeholders in policy deliberations.

Looking ahead, the study observes a resurgence of stakeholder-driven policymaking under Lula’s new administration, evidenced by mission-oriented industrial policy initiatives with specified conditions and metrics. However, these initiatives still require further specification and rigorous implementation to translate past lessons into current developmental efforts effectively.

More information: Renato H. de Gaspi et al, The Sectoral Politics of Industrial Policy Making in Brazil: A Polanyian Interpretation, Development and Change. DOI: 10.1111/dech.12835

Journal information: Development and Change Provided by University of Exeter