Brazil is in a crisis again. The COVID-19 pandemic has spread across the country andÌýÌýhas led to a massive health crisis. Investment outflows have beenÌýÌýand the Brazilian real hasÌý dramatically. The Brazilian economy is set to again after three years of weak positive growth.
Brazil’s development bank Banco Nacional de Desenvolvimento Econômico e Social (BNDES) has announced someÌýÌýto deal with the financial instability caused by the COVID-19 pandemic. However, these measures are beingÌýÌýfor being insufficient. Rather than being a temporary policy mistake that can be corrected easily, BNDES’ passive response is linked to the bank’s structural retreat from the economy over the past five years.
During the 2000s, BNDESÌýwas acclaimed as a catalyst of the country’s economic growth. Globally, developing countries such as saw the rise of BNDES as something favourable and sought to mobilise their own national development banks.
By acting as of major domestic companies, BNDES played a key role in Brazil’s state-activist growth model of which the observers have labelled ‘,’ ‘,’ or ‘.’ Furthermore, BNDES actively supported national champions’ strategy by financing export and investment activities. During and after the global financial crisis, BNDES’ role extended and was used by the government to carry out . Read More »