Governing State Capitalism: The Case of Brazil

Details

Author(s):
  • Mariana Pargendler
Publish Date:
September 8, 2014
Publication Title:
SSRN Working Paper, September 8, 2014.
Format:
Working Paper
Citation(s):
  • Mariana Pargendler, Governing State Capitalism: The Case of Brazil, SSRN Working Paper, September 8, 2014.

Abstract

Brazil is a main exemplar of contemporary pursuit of state capitalism by a Western economy. The particular style of state capitalism prevailing in Brazil today reflects a combination of governmental control of traditional SOEs with the conspicuous exercise of shareholder activism by state-controlled institutional investors. This chapter (which is forthcoming in a volume on Chinese State Capitalism, edited by Benjamin Liebman and Curtis J. Milhaupt and published by the Oxford University Press) provides a picture of the different instruments for state influence in Brazilian corporate governance, and examines the role of law in enabling and constraining this evolving variety of state capitalism. It begins to approach this theme by outlining the basic legal framework for state involvement in corporate governance. It then shifts gears to examine the relationship between law and state capitalism in action by scrutinizing two high-profile transactions involving state actors.