accidentally; a regime that could not wield the knout could hardly have carried out measures with such a deleterious impact on the population.
The neoliberal reforms did not exactly succeed in âbuilding Brazilian capitalism,â Skidmore continues (though they did help build foreign corporations). They provoked a severe industrial recession, driving many businesses to ruin. To counter these effects and to prevent still further foreign takeover of the economy, the government turned to the public sector, strengthening the despised state corporations.
In 1967, economic policy was taken over by technocrats led by the highly respected conservative economist Antonio Delfim Neto, an enthusiastic supporter of âthe Revolution of March 31,â which he saw as a âhuge demonstration by societyâ and âthe product of a collective consensusâ (among those who qualify as âsocietyâ). Declaring its devotion to the principles of economic liberalism, the government instituted indefinite wage controls. âWorker protests, up to now infrequent and small, were handily suppressed,â Skidmore notes, as fascist rule hardened further over the whole society, with harsh censorship, elimination of judicial independence, removal of many faculty, and revised curricula to promote patriotism. The new compulsory course in âMoral and Civic Educationâ aimed to âdefend the democratic principle by preserving the religious spirit, the dignity of the human being, and the love of liberty, with responsibility under Godâs inspirationââas administered by the Generals with the technocrats at their side. The authors of the 1992 Republican Campaign platform would have been much impressed, along with 1980s-style âconservativesâ rather generally.
The President announced in 1970 that repression would be âharsh and implacable,â with no rights for âpseudo-Brazilians.â Torture became âa grisly ritual, a calculated onslaught against body and soul,â Skidmore writes, with such specialties as torture of children and gang rape of wives before the family. The âorgy of tortureâ provided âa stark warningâ to anyone with the wrong thoughts. It was a âpowerful instrument,â that âmade it even easier for Delfim and his technocrats to avoid public debate over fundamental economic and social prioritiesâ while they âpreached the virtues of the free market.â The resumption of high economic growth, by these means, made Brazil âagain attractive to foreign private investors,â who took over substantial parts of the economy. By the late 1970s, âThe industries dominated by local capital in Brazil [were] the same industries where small businesses flourish in the United Statesâ; multinationals and their local associates dominated the more profitable growth areas, though with the changes in the global economy, about 60 percent of foreign capital was then non-US (Peter Evans).
Macroeconomic statistics continued to be satisfying, Skidmore continues, with rapid growth of GNP and foreign investment. A âdramaticâ improvement in terms of trade in the early â70s also provided a shot in the arm to the Generals and technocrats. They held firm to the doctrine that âthe real answer to poverty and unequal income distribution was rapid economic growth, thereby increasing the total economic pie,â eliciting nods of approval in the West. A closer look shows other characteristic features of neoliberal doctrine. Growth rates in 1965-1982 under the National Security State averaged no higher than under the parliamentary governments from 1947-1964, economist David Felix observes, despite the advantages of authoritarian control the fascist neoliberals enjoyed; and the domestic savings rate hardly rose during the âmiracle yearsâ under the âright-wing consumerismâ instituted by the Generals and