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"Economic Orthodoxy Versus Social Development? The Dilemmas Facing Brazil's Labor Government"

Werner Baer and Edmund Amann


First Author :

Werner Baer
University of Illinois at Urbana-Champaign
218 DKH, M/C 706
Champaign, IL 61820


Second Author :

Edmund Amann
School of Economic Studies
University of Manchester

Abstract :
It has often been suggested that the trade-off between equity and efficiency can be overcome by achieving both goals sequentially. This article shows how the government of President Lula has tried to follow the latter, by first emphasizing economic orthodoxy, to be followed by measures to achieve more socio-economic equity. With President Lula’s administration in mandate the second half of its mandate our analysis suggests that such a sequence may be difficult to achieve.
Keywords :
discretionary and non-discretionary public expenditures, Latin America, Macroeconomic stability, socio-economic policies
Manuscript Received : 2005
Manuscript Published : 2005
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