From Disorder to Growth and Back: The Military Regime (1964–1984)
This chapter discusses the military government and the belief in “developmentalism” which motivated the institutions put in place by the regime. Developmentalism rested on top-down technocratic planning and was a coalition between the military and the business community, both domestic and foreign. Import substitution policies along with state-led industrialization brought economic growth in the late 1960s and into the mid-1970s. But, the Brazilian miracle of the late 1960s and early 1970s began to sputter out, and, moreover, political rights became more constrained. The years of censorship and a closed political system sowed the seeds for a more open political order. Above all, the failure of the expansionist strategy of growth through import substitution accompanied by inflation and external debt became self-evident. Citizens also began to blame the government for not reducing economic and social inequality. The dominant belief that economic growth should precede social inclusion started losing political support.