Changing State-Market Relations and Development

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Changing State-Market Relations and Development

Type: Research master thesis
Title: Changing State-Market Relations and Development
Author: Wouwer, Rafael Van de
Issue Date: 2017-06-30
Keywords: Energy Policy, Changing State-Market Relations, Industrial Change, Economic Growth and Development
Abstract: In this thesis the objective is to understand why state-market relations change overtime and the main research question is: “How do changing state-market-relations influence the performance of the Brazilian energy sector and what has been the impact of the different roles of the state on (national) growth and development since the First Republic until the Dilma Administration (1889-2016)?” The objective is to study which model leads to the development of an energy sector that can be used to accomplish broad-based national development. Furthermore, it would be quite interesting to analyse why policy changes occurs. The reason for the choice for energy is an obvious one as it is essential for economic development. Furthermore, energy resources, subsoil or offshore, such as coal, uranium, and oil and gas, and renewable energy resources such as biomass, wind-, solar-, and hydropower form a vital public good and should be provided at affordable prices even in remote areas. Therefore, the relation between development and state ownership of energy resources will be investigated. In this regard, the performance during the First Republic (1889-1930) will be analysed to study the impact of “liberalism”. In addition, the impact of “structuralism” (1930-1995) will be studied. Afterwards, the impact of “liberalization” (1995-2002) will be compared with “neo-structuralism” under the Workers Party (PT) (2003-2016). In this thesis is chosen for almost all energy resources to demonstrate that the same pattern takes place in all energy sectors, and thus, even in sectors that are considered strategic or sensitive such as nuclear energy. In addition, it shows that sectors such as wind and solar pose massive potential for energy generation in Brazil and that those sectors are remarkably underdeveloped in the country. The case study also demonstrates that government policy has proven to be necessary to provide incentives for investors to develop them and that currently government policy does not stimulate investment in those sectors. The expectation is that ideally to achieve national development and to develop new sectors the state should own and protect it while providing incentives for growth but that in practice state-market relations change to keep expanding the exploitation of energy resources in a changing global economic environment, and that outcomes reflect the relative bargaining power of local, state and multinational capital. The expectation in regard to the role of the state is that its function is to facilitate capital, and to coerce labour. Hence, to provide financial incentives and easy access for mostly foreign capital while the other role for the state seems to be the appeasement of different actors that have the potential capacity and will to oppose the expansion of foreign investment and exploitation of energy resources through the strategic use of stick and carrot in a changing global economic context.
Supervisor: Silva, Patricio
Faculty: Faculty of Humanities
Department: Latin American Studies (Research master)
Specialisation: Public Policy
ECTS Credits: 30

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