Attracting foreign direct investment (FDI) in Brazil: analysis of the Associated Dependent Development project under Fernando Henrique Cardoso’s government (1995-2002)

Abstract

Foreign direct investment (FDI) is a significant catalyst for development and an important component in the definition of a country’s economic policy with foreign capital. Its attraction represented a central aspect of Brazil’s economic policy in the late 1990s, especially under the government of Fernando Henrique Cardoso (1995-2002). Marked by significant inflows of foreign capital, Cardoso’s presidency raised important questions on the possible application of his sociological proposal of associated dependent development. In fact, Cardoso had actively participated in the influential debates on development throughout the 1960s and 1970s, where he positively reviewed the alliance between developing economies and foreign capital to promote development despite being associated and dependent. It is within this context that his political involvement reveals the uniqueness of his case: the one of a sociologist becoming president of a country. This thesis aims to examine how - in what ways - Cardoso’s economic policy towards FDI intellectually mirrored his project of associated dependent development for Brazil during his years of government, shaping the insertion of Brazil in the new globalization era. It will be made possible by examining the implementation of specific legislative instruments and policies, including the process of privatization designed to attract foreign capital into the national economy.