By FERNANDO NOGUEIRA DA COSTA*
Social-developmentalism emerged to designate supporters of adapting European experiences to the Latin American context
Achieving a condition of social democracy in an underdeveloped country requires a gradual approach adapted to the specific circumstances of each nation. For this reason, the expression social-developmentalism emerged to designate supporters of adapting these European experiences to the Latin American context, in fact, quite different between Brazil and neighboring nations, in addition to the others up to Mexico, neighbor of an arrogant hegemonic power , but in the process of reaching the ranking of the ten largest GDPs in the world, as is already the case in Brazil.
Some useful steps and considerations in this process are as follows. Brazil, under governments under the negotiated hegemony of a party of labor origin with other allies, seeks to implement policies in order to promote inclusive economic growth, redistributing the benefits of development to the entire population, instead of concentrating them in one elite.
To do so, it must prioritize investments in quality education, accessible healthcare and other social policies capable of reducing inequality and promoting social mobility. Without strengthening democratic institutions, with the strengthening of the Rule of Law, unlike the previous neo-fascist-neoliberal government, it does not guarantee democratic institutions with respect for human rights, the independence of the Judiciary and the fight against corruption.
Citizen participation is still fragile in Brazil. It is then up to the current government, democratically elected by a small majority, to promote the active participation of civil society in political decision-making and in monitoring the government itself to ensure transparency and accountability.
Social welfare policies, required to achieve social democracy as a stage in the systemic transition towards a new mode of production, perhaps dubbed “socialist”, require social security care. It means implementing comprehensive social security systems to ensure protection against poverty, access to health care, education and social security for all citizens.
Income redistribution is even easier in view of the extremely difficult redistribution of wealth, if we consider that accumulated throughout the active lives of many workers. It is necessary for public debate to clarify and distinguish the “luck of the cradle” from the individual effort to accumulate wealth for retirement and help their heirs.
In this sense, adopting progressive fiscal policies capable of taxing the richest and redistributing income to finance public services and social programs must undergo debate in the National Congress. The range of billionaires in the segment Consulting, capable of being taxed without feeling the difference (“after a billion dollars you don’t think about cheap consumerism”) must be distinguished from the middle class of High Income Retail.
For this national construction of a more egalitarian society, social dialogue and collective negotiation are necessary. In the case of labor relations, it is necessary to promote social dialogue between employers, workers and the government to negotiate fair working conditions, decent wages and social protection for workers.
Although decadent, due to the neoliberal reforms of the coup government (2016-2018) with the cut of unions' funds, it is still necessary to support collective bargaining between unions and employers to guarantee labor rights and decent working conditions. The biggest challenge concerns the new generations of “urbanized” and “pejotized” microentrepreneurs, as they are overexploited, whether in terms of length of working hours or lack of labor rights.
One problem is having a broad national vision for reducing regional disparities. It is necessary to implement regional and urban development policies in order to reduce economic disparities between urban and rural areas, promoting inclusive growth and territorial equity. Again, “easy said, hard done”.
To invest in urban infrastructure, affordable housing and public transport to promote the sustainable development of cities, to improve the quality of life of urban inhabitants you need… money! Funds! There are disputes in the approval of the budgets of the Union, States and Municipalities.
The “salvation of the homeland” is placed by many in international cooperation. It even works for small countries, but not for giants like Brazil.
Development assistance seeks international support and cooperation, both financial and technical, from international organizations, developed countries and development agencies to strengthen institutional capacities and promote social and economic progress. All very well, all very well, but really... it's better to trust in regional integration.
To this end, actively participating in regional blocs and cooperation agreements to promote fair trade, economic integration and joint development in a way that provides mutual support among all Latin American nations may be “the salvation of agriculture”, that is, the promotion of continental trade. Countries below the Equator are far from the Global Value Chains (GVC) of the rich North. Maybe it would be cheaper to trade with Africa…
Ultimately, the transition to a condition of social democracy in an underdeveloped country requires a long-term commitment to progressive policies, strong democratic institutions and investments in human development and social well-being. It is a gradual process demanding a multifaceted approach and adapted to the specific needs and realities of each country.
Through inclusive and participatory policies, it is possible to achieve sustainable economic and social development in a way that benefits the entire population. It will not be easy, not even in the short term, under the mandate of a progressive government. It demands repeated re-elections of Broad Front governments with allies equally with this social-developmentalist claim.
Neither social democracy nor social developmentalism necessarily requires the complete nationalization of the means of production, as mistakenly occurs in more radical socialist systems. Instead, social democracy is based on a mixed economic system, like China's, capable of combining market elements with a broad social protection network and state intervention to guarantee the well-being of the population.
Most means of production remain in the hands of private companies. They operate based on profit and market competition.
The government plays an active role in regulating the economy, implementing policies to correct market failures, promote equal opportunity, and protect the rights of workers and consumers. But it does not eliminate private property, nor does state intervention obstruct legal private business.
In some cases, sectors considered strategic for the public interest, such as energy, transport, health and education, tend to be at least partially nationalized to guarantee universal and equitable access to these services. The State maintains participation or control in public companies that provide essential services, but there may also be private companies competing in these sectors.
Social democracy, as well as social developmentalism, promotes a broad social protection network, which includes unemployment insurance, public health, free education, retirement and other social benefits financed by the state. Labor policies such as minimum wages, limits on working hours, parental leave, and protections against unfair dismissals are established to protect workers' rights and ensure decent working conditions.
Regarding income redistribution, progressive taxes are applied to finance social programs and reduce income inequality, ensuring a more equitable distribution of wealth and opportunities. The government implements regulations to control the financial system, prevent abuse, and ensure economic stability and access to credit for individuals and businesses.
Although social democracy and social developmentalism may involve some selective nationalization of strategic sectors and strong state intervention in the economy, they do not require the complete nationalization of the means of production. Instead, both regimes seek a balance between the market and the State, with the aim of guaranteeing the well-being of the population, promoting equal opportunities and mitigating social and economic inequalities.
*Fernando Nogueira da Costa He is a full professor at the Institute of Economics at Unicamp. Author, among other books, of Brazil of banks (EDUSP). [https://amzn.to/3r9xVNh]
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