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Thursday, July 26, 2018

Duncan Green — Why is Latin America Going Backwards?

Increasingly, however, academics and development practitioners are looking at a less visible and tangible obstacle – the capture of the State by economic and political elites. The extreme concentration of economic and political power reinforces the ability to unduly co-opt, corrupt and divert the democratic process, and influence the role of the State, perpetuating measures that reinforce privilege on the one hand and inequality and exclusion on the other. This elite capture is manifested in the ability to influence public policies, fiscal systems (regressive rather than progressive), and keep wages low (one in six workers with formal employment in the region live in poverty). It also leads to corruption and an erosion of democratic process, principle and institutions.
The UN Economic Commission for Latin America and the Caribbean (ECLAC) call it “the culture of privilege.” Latinobarometro in its 2017 report “Decline in Democracy”, refers to a ‘democratic diabetes’, an invisible illness that isn´t alarming in itself but slowly kills you. 75% of Latin Americans believe they are governed by an elite that rules for its own benefit.
There you have it.

Neoliberalism is a political theory based on elite capture of the state and using the state apparatus to further elite interests. It is a form of oligarchy (rule by a few) called "plutonomy," literally "the rule of wealth." "The culture of privilege" summarizes it aptly in sociological terms as a manifestation of downward causation in a system of networks, with the upper nodes controlling lower nodes.

What about "the failure of socialism"? Socialism was doing fine in the commodity boom, even with elite opposition support from abroad. When that boom ended and the economic situation shifted, elite interest saw a chance to regain control and the result has been destabilization, again with foreign support.

Oxfam Blogs — From Poverty to Power
Why is Latin America Going Backwards?
Duncan Green, strategic adviser for Oxfam GB

16 comments:

  1. "Neoliberalism is a political theory based on elite capture of the state"

    You say it as if neoliberalists had some monopoly over elite capture.

    Lula, former Brazilian president, was a left-winger that was arrested because of its capture of the state. The "elite", in this case, was himself and the leadership of his political party, Workers Party (PT in portuguese).

    Claiming that only the neoliberals capture the state is a kind of ideological blindness.

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  2. "Lula, former Brazilian president, was a left-winger that was arrested because of its capture of the state."

    Perhaps English is your second or third language. Lula is not an "it." Or perhaps you are simply a moron.

    In mid-2016 the ultra-corrupt neoliberals staged a coup that ousted Dilma Rousseff. In July 2017 those same ultra-corrupt neoliberals ordered former president Lula da Silva convicted for "corruption." In Jan 2018 they ordered Lula imprisoned for 12 years. On 7 April 2018 Lula surrendered to the neoliberals, including Michel Temer, who is the most unpopular president in Brazilian history.

    Do what you like, but I recommend that you do not comment in this blog. You only make yourself look stupid. At the minimum you must learn how to write in English.

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  3. Sorry, English is my second language. And I usually write from a smartphone, so it doesn't help also.

    "In mid-2016 the ultra-corrupt neoliberals staged a coup that ousted Dilma Rousseff".

    Yes, the ultra-corrupt did, but they are not all neoliberals.

    "In July 2017 those same ultra-corrupt neoliberals ordered former president Lula da Silva convicted for 'corruption.' "

    Nope, judge Sergio Moro was the one who convicted Lula. Because of corruption scandals. Lula is corrupt. Not neoliberal, but corrupt nonetheless.

    Don't know why you (and a lot of other people) believe that Lula is a saint just because he is an left-winger politician. Corruption is a decease that affects all the political spectrum.

    My English is not so bad. I don't think I should stop commenting just because of that. But if the owners of the blog (Michael Norman, Tom, Matt, etc) want, I will stop commenting. However, I will not stop commenting because a troll believes he can act disrespectfully just because he is behind a computer, like you do.

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  4. @ André

    Unless a general quantifier is explicitly expressed, it is assumed that the quantifier is particular.

    "Neoliberalism is a political theory based on elite capture of the state"

    Neoliberalism is a member of the set "political theories delimited by elite capture of the state."

    It is not a claim that neoliberalism is the only member of the set, as you assume.

    It says that all members of the set neoliberalism are some members of the set "political theories delimited by elite capture of the state."

    Some claim that all types of socialism are also a members of the set "political theories delimited by elite capture of the state."

    Others hold that only some types of socialism are.

    Yet other hold that none are and those elites representing themselves as socialist who capture the state and use it for elite purposes are not socialist but pseudo-socialists using cover to mask their true purpose.

    similarly, some noliberals mask their purpose by claiming to be laissez-faire classical liberals that want to minimize the state.

    Of course, not all neoliberals self-identify as such or if they, define neoliberalism as involving elite capture of the state.

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  5. André, your English is excellent, and I would not suspect that English is not your first language.

    I make enough typos for people to suspect English is not my first language or else my literacy is low.

    You are doing very well.

    We need to accommodate those whose English may not be first rate and assist them.

    I am afraid that often I forget to write at a high school, non-academic level, which should be the level of a popular blog aimed at people that may not speak English as first language. Apologies.

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    1. Thanks for the support Tom. Now I am used to reading academic level English, and I have no trouble reading what you write. Sometimes I do make some mistakes when writing, but they are usually typos. The fact that I couldn't see the logic behind the sentence (about the elite capture of the state) was not bad English, but lack of attention. You may continue to write as you do.

      I only have trouble reading the extremely succinct style usually employed by Warren Mosler and sometimes Matt... those are the real challange!

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  6. “Neoliberalism is a political theory“

    Tom can you direct me to a course in the academe called “Neoliberalism 101”?

    Is that course a Science Degree requirement or an Art Degree requirement?

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  7. A, you probably write English better than I do...

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  8. Creating an unnecessary state to conduct massive unnecessary economic intrusions to cure problems that do not exist but for the intrusive state is ALWAYS GOING TO BE CAPTURED by evil bastards and SOBs. ALWAYS. Hayek 101.

    The Road to Serfdom, to coin a phrase.

    DUH.

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  9. Here's an example bu not 101. It it is a grad school course in political science at Berkeley.

    MARX AND NEOLIBERALISM .

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  10. That silly Berkeley course sounds like a fraudulent embezzlement of government supplied funds. I would support an investigation followed by indictments.

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  11. Andre:Nope, judge Sergio Moro was the one who convicted Lula. Because of corruption scandals. Lula is corrupt. Not neoliberal, but corrupt nonetheless.

    Don't know why you (and a lot of other people) believe that Lula is a saint just because he is an left-winger politician. Corruption is a decease that affects all the political spectrum.


    The reason why we "believe that Lula is a saint" is the same reason that another judge tried to release Lula recently. From cursory examination of the charges and evidence, it looks like both are preposterous, absurd and fabricated, and the procedure is out of Alice in Wonderland. So that Sergio Moro is the one who is corrupt, not Lula. There have been show trials and investigations in the old Soviet Union etc. From all appearances - I would give 1000 to 1 odds - Russiagate is an ongoing example in the USA. Why can't it happen in Brazil?

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  12. Calgacus, so I suggest you do some profound investigation.

    Also, I suggest you try to avoid relying on one single source of information or one-sided (left or right) sources. If you gather information from a lot of people with a lot of agendas, they will eventually reveal some contradictions of their opponents.

    Judge Serigio Moro is not corrupt. You could claim that he exaggerated in some proceedings, but it is not easy to conduct a case where an ex-president and the ruling party are involved, and a lot of people form its leadership and alliances are involved and trying to kill the investigations and end the judgment.

    Of course Lula portrays himself as the innocent victim, and of course he claims that the trial is biased and that the judge is corrupt. That is what most convicted criminals do. However, if you examine the facts with caution, you will understand that he really is corrupt.

    If you look with attention to the other judge that tried to release Lula, you will realize that all the event was surreal. There is not chance that this sort of thing would happen in any country with serious institutions. It was a joke. It is impossible to compare that joke with the work conducted by judge Serio Moro, the Federal Prosecution Office and the Federal Police.

    When I say those things, most people assume, in their ignorance, that I'm a right-winger. I'm not. (Like when I say that I don't like Hillary most people assume that I'm pro-Trump, which is an obvious absurd).

    Dumb people assume a lot. I don't think it is the case here in this Blog, but I will just say somethings to make it clear:
    - I'm not right-winger.
    - I'm not claiming that Lula is the only corrupt politician in the world. Indeed, it is very odd that he was arrested while Michel Temer (the current president), Rodrigo Maia, and many other right and left politicians were not arrested. The institutions should not arrest just some criminals and let the others go - although it happens because those politicians are the ones making the rules and the rule is that they cannot be arrested when they are in power, except for the most extreme situations.
    - I do not believe that Dilma Rousseff impeachment was fair. I do believe it was some kind of "white coup" as some people say.
    - I believe the right-wingers in power are as corrupt as the previous government.

    What I do not believe is that left-wingers are super-humans that can never fail in ethics, moral and justice. That is what some unreasonable left-winger bloggers and/or economits think, like Matias Vernego and others.

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  13. I don't have the time. If I did, I might change my mind, but I don't think so. As always, I've listened a little at both sides. But the charges seem so ridiculous that they refute themselves, and the procedure of the trial looks even worse. If there is a case to be made against Lula, then nobody has made it as far as I can see, their actions seem to indicate that there is no case to be made. Same as for Russiagate.

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  14. Calgacus,

    "As always, I've listened a little at both sides"

    Well, if you concluded that he is innocent, you listened a little of the wrong side (his lawyers? his family? his friends? his political allies? the delusional left?)

    Lula was found guilty (in multiple court instances) of receiving a seaside duplex apartment worth about $755,000 from a construction company called OAS. The gift was part of a multibillion-dollar bribe scheme controlled by Lula at the state-run oil company Petrobras.

    It is no surprise that he claims he is innocent, a victim of a kind coup - he is a criminal trying to evade prision.

    What surprises me is when people start believing him.

    There is not problem at all your lack of time for such subjects. Brazil is not even an important country in the international theater. People have many other important issues to care about.

    But if you had no time to understand the situation right, you should be cautious when jumping to conclusions...

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