Liberalism in Brazil

The almost-lost cause of freedom

Why is economic liberalism so taboo in socially liberal Brazil?

“ADMITTING to liberalism explicitly,” wrote Roberto Campos, a Brazilian politician, diplomat and swimmer against the tide who died in 2001, “is as outlandish in a country with a dirigiste culture as having sex in public.” His observation still holds for Brazil, where economic liberals (in the British, free-market sense, not the socialistic American one) are as scarce as snowflakes. Government revenue as a share of GDP has risen steadily in the past decade, and is now closer to the level in rich European countries than that of Brazil’s middle-income peers. Despite this, none of the likely candidates in the presidential election due in October talks about cutting taxes. The two leading candidates are both on the tax-and-spend centre-left.

Brazil’s shortage of economic liberals is even stranger given the country’s history. In Chile economic liberalism was tainted by association with military rule. But Brazil’s 1964-85 military dictatorship chose an economic model built around state planning and restricted imports. It is necessary to go back to the 19th century, when Brazil’s then monarchy was briefly in thrall to Scottish economists, to find something like classical liberalism there.