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The Politicized Market Economy: Alcohol in Brazil's Energy Strategy

By (author) Michael Barzelay

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The Politicized Market Economy: Alcohol in Brazil's Energy Strategy examines Brazil's ambitious National Alcohol Program (Proalcool) as a case study in the interplay between government policies and market forces in a politicized market economy. The book develops a comprehensive model for understanding how state officials and private investors mutually adjust their decisions in systems where the government exerts significant control over resource allocation. By exploring Brazil's energy strategy, particularly the shift toward renewable alcohol fuel as a petroleum substitute, the study illuminates the complexities of coordinating economic policies and private sector actions amidst political and institutional challenges. The book situates Brazil's Proalcool initiative within the broader historical and political context of its late industrialization and the authoritarian regime that governed from 1964 to 1985. It highlights the challenges faced in aligning sector-specific policies, such as subsidies and regulations, with private investment incentives. The study also delves into the resistance of state entities like Petrobras and the financial bureaucracy, which created significant obstacles for the alcohol program despite national directives. Through its analysis, the book sheds light on the broader implications of Brazil's steered economy for understanding the dynamics of state-led development and offers a framework for comparative analysis of politicized market economies worldwide. This title is part of UC Press's Voices Revived program, which commemorates University of California Pressâ€™s mission to seek out and cultivate the brightest minds and give them voice, reach, and impact. Drawing on a backlist dating to 1893, Voices Revived makes high-quality, peer-reviewed scholarship accessible once again using print-on-demand technology. This title was originally published in 1986.

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