CapitalismEssaysFeatureLiberal Democracy in Question

Brazil is not a Capitalist Country

The Brazilian Federal Constitution speaks of a “free market” (Art. 170) and describes the state as a “normative and regulating agent of economic activity” (Art. 174). Unfortunately, reality is completely different. We have two worlds in Brazil: the first is the naïve utopia of the legislator; the other is the crude practice of political gangsters. Life as it is differs substantially from life as it should be.

As pointed out by Professor Douglass North, economic growth is directly linked to the quality of a nation’s institutions. Prosperous countries are buttressed by strong, serious and efficient institutions; poor countries are infected by weak, dishonest and exploitative ones. 

The fact is that we do not have capitalism in Brazil. Our free market is state-directed, while our “free competition” favors powerful…

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