The political economy of corruption in Brazil

This article is the first part of a research on corruption in Brazil and it is theoretical. Despite this, it provides an economic interpretation of corruption using Brazil as a case study. The main objective of this research is to apply some microeconomic tools to understand the "big corruption". However, I am going to show that corruption is not simply a kind of crime. Rather, it is an ordinary economic activity that arises in some institutional environments. Firstly, some corruption cases in Brazil will be described. This article is aimed at showing that democracy itself does not ensure control over corruption. Secondly, I am going to do a very brief survey of institutional changes and controls over corruption in some Western Societies in which I am going to argue that corruption, its control and its illegality depend on institutional evolution by streamlining the constitutional and institutional framework. Thirdly, I am going to explain how some economic models could be adopted for a better understanding of corruption. Finally, I will present a multiple-self model applied to the public agent (politician and bureaucrat) constrained by institutions and pay-off systems.

A quality and cost approach for welding process selection

The aim of this work was to propose, apply and evaluate a methodical approach to select welding processes in a productive environment based on market requirements of Quality and Costs. A case study was used. The welds were carried out in laboratory, simulating the joint conditions of a manufacturer and using several welding processes: SMAW, GTAW, pulsed GTAW, GMAW with CO2 and Ar based shielding gases and pulsed GMAW. For Quality analysis geometrical aspects of the beads were considered and for Cost analysis, welding parameters and consumable prices. Quantitative indices were proposed and evaluated. After that, evaluation of both Quality and Costs was done, showing to be possible to select the most suitable welding process to a specific application, taking into account the market conditions of a company.

Welding current effect on diffusible hydrogen content in flux cored arc weld metal

The application of flux cored arc welding (FCAW) has increased in manufacturing and fabrication. Even though FCAW is well known for its good capability in producing quality welds, few reports have been published on the cause of the relatively high diffusible hydrogen content in the weld metal and its relation with the ingredients used in the wire production and with the welding parameters (mainly welding current). This paper describes experiments where data obtained from weld metal diffusible hydrogen analysis, metal droplet collection, and high-speed recording of metal droplet transfer were used to evaluate the effect of welding current on diffusible hydrogen content in the weld metal. The results from gas chromatography analysis showed that weld metal hydrogen content indeed increased with welding current. A polynomial regressional analysis concluded that hydrogen increase with current was better described by a linear function with proportional constant of approximately 0.7 or 70%. Different from the GMA welding transfer behavior, statistical analysis showed only a small increase in metal droplet size with increasing current. The metal transfer mode remained in the globular range for currents between 100 and 150 A. The most surprising findings were with the high-speed cinematography recording. Observing the high speed movies, it was possible to see that at low current, "unmelted" flux sporadically touched the weld pool but at higher current, the flux remained touching the weld pool during the whole time of droplet formation and transfer. It is believed that since the flux has ingredients that contain hydrogen, hydrogen passes through the arc undisturbed, going to the weld bead intact and increasing the hydrogen content in the weld metal. Another important observation is regarding to droplet size. Droplet size increased with increasing current because forces from decomposed gases from the flux could sustain the droplets, retarding their transfer and allowing them to grow.

Food production in solidarity economy: an issue that goes beyond laws

Abstract Food production within the context of solidarity economy is an alternative way to offer employment and income for a significant part of the Brazilian population. The purpose of this study was to carry out a business diagnosis in order to evaluate the facilities, the production process and hygiene practices of seven solidarity economy enterprises located in the city of Novo Hamburgo, Southern Brazil, that work with food production and sales. Visits took place at the enterprises and a check-list was used to record data. Although food production happens in places with space and setting restrictions, it guarantees distinctive foods with aggregate value, where handlers follow the whole process, from raw materials selection to sales. Basic hygiene principles are followed, as they guarantee the production of food with quality, which contributes towards income generation for participating families. Specific laws that apply to the characteristics and needs of small-scale food production must be written in order to regulate solidarity economy enterprises.

Political economy of preferential trade agreement: the case of bilateral asymmetric negotiation

The purpose of this paper is to analyse the political economy of preferential trade agreements based on a sequential non-cooperative Stackelberg political game between a large economy and a small one, in which the political dispute of rival lobby groups defines the unilateral stance of both governments in the first stage; and the Stackelberg "coalition-proof" equilibrium defines the free trade agreement format in the second stage. Finally, a few modifications in the initial game structure are discussed in order to enhance the small economy's negotiation power. The political economy model is applied to FTAA case.

From the 'Miracle' to the 'Lost Decade': intersectoral transfers and external credit in the Brazilian economy

The present paper examines the Brazilian experience from the 'Economic Miracle' to the 'Lost Decade'. Its aim is to advance an alternative measurement of the flows of extraordinary wealth (i.e. ground-rent and net external credit) available for appropriation in the Brazilian economy and to asses their relevance in sustaining the process of accumulation of industrial capital. That is done in order to provide further and more accurate evidence to the claim that the evolution of the Brazilian process of capital accumulation has been extremely dependent on the evolution of those masses of extraordinary wealth.

The real mechanisms of the global economy

The paper presents the main arguments of Bresser Pereira's Globalization and Competition. Development strategies based on the 'conventional orthodoxy' are shown to carry serious drawbacks ("Dutch disease", pernicious effects of external saving, currency overvaluation), while a 'new developmentalism' is promoted, in spite of the widespread belief that the nation-states have been dispossessed of their room for manoeuvre because of the globalization process. The "new developmentalism" is based on domestic finance, balanced public budgets, moderate interest rates and competitiveness policies aimed at neutralizing the tendency to exchange rate overappreciation. The paper also points out a few theoretical questions the book raises.

Investment in the Brazilian economy during the crisis

In this short article, it is analyzed as to whether financial flows and credit concessions explain the behavior of investment in the Brazilian economy during the 2008 crisis. Beyond the importance of demand, changes in expectations seem to be an important source of instability in investment and, as a consequence, in the economy.

Brazil as an emerging economy: a new economic miracle?

This article shows that abundant resources and blind faith in an optimistic future cannot result in sustainable growth in Brazil. There are great deficiencies in various areas which make sustained high growth rates almost impossible to achieve, such as the low investment ratio, deficiencies in creating human capital, high interest rates leading to an uncompetitive exchange rate and a lack of infrastructural development.

Education and development projects in Brazil (1932-2004): political economy perspective

This paper discusses the long-run history of education policies in Brazil. It is suggested that the main reason for the educational backwardness was the existence of strong political interests over education. It is also defended that these interests can be empirically observed in the allocation of public resources between the different levels of education, with political choices favouring specific groups in society. It was not a matter of lack of investment in education, but of inadequate allocation of resources. This pattern of political-based policies created a strong negative path dependence of misallocation of resources in education in Brazil, particularly with significant underinvestment in secondary education.