Challenges to the development of peripheral economies1

Noelio Dantaslé Spinola2

Abstract

The methodological inadequacy of the theoretical tools upon which public policies are based,

promoted, and applied in many remote regions of South America is one of the biggest

challenges to the promotion of effective economic and social development. This study examines

the state of Bahia, a Brazilian state located in its northeastern region. It discusses the

contributions relating to new programs to promote economic development in the context of

world economy, and their effectiveness in the case of Bahia. It analyzes the teleological aspects

of the new categories included in the theory of regional development, such as local

development, endogenous, self-sustaining, and community that represent different strategies

and, therefore, comprise of different approaches. As a matter of hermeneutics it examines

methodological aspects and the operational use of these categories, demonstrating their lack of

adherence to the phenomena observed in the culture of peripheral communities, in their original

formulations derived in different scopes, built from more technologically advanced realities not

considering the necessary degree of integration (embeddedness) between the different actors

being a prerequisite for obtaining the desired success. In this sense, the form adopted in the use

of these methodologies that aim to interpret and intervene in development processes that call for

local development, endogenous, self-sustaining and so on is compromised by not corresponding

to the real object of their investigations and interventions. The scientific rigor required of those

who work with the social sciences becomes distorted, confused and causes difficulties, in

general terms, in making sense of public policies adopted under the label of these

denominations. Finally, the paper proposes the resumption of efforts to build new alternatives

for promoting development through the formation of human capital and the appropriateness of

new techniques for promoting the reality and characteristics of less developed regions.

Key Words: Regional Development; Local Development; Endogenous Development;

Space Economics; Brazilian Economy; Bahia Economy.

Resumo

A inadequação metodológica do ferramental teórico em que se fundamentam as políticas

públicas de fomento aplicadas em muitas regiões periféricas da América do Sul constitui um

dos maiores desafios à promoção do seu efetivo desenvolvimento econômico e social. Neste

estudo examina-se a situação da Bahia, um estado brasileiro localizado em sua região Nordeste.

Aborda as novas contribuições relacionadas com os programas de promoção do

desenvolvimento econômico num contexto de economia-mundo, e a sua eficácia no caso da

Bahia. Analisa os aspectos teleológicos das novas categorias inseridas na teoria do

desenvolvimento regional, tais como desenvolvimento local, endógeno, autossustentável, e

comunitário que representam diferentes estratégias e, por isto mesmo, comportam diferentes

abordagens. A partir de uma questão de hermenêutica analisa aspectos metodológicos e

operacionais da utilização destas categorias, demonstrando a sua falta de aderência aos

fenômenos observados na cultura das comunidades periféricas, por derivarem em suas

formulações originais de escopos diferentes, construídos a partir de realidades tecnologicamente

1 Paper presented at the 9th World Congress of Regional Science Association International. May 9 – 12 - 2012

Timisoara, Romania. [ID: 1705] 2 Doutor em Geografia e História pela Universidade de Barcelona (ES). Professor Titular de Economia Regional e

Métodos de Análise Regional no Programa de Pós-Graduação em Desenvolvimento Regional e Urbano (PPDRU) da

Universidade Salvador (UNIFACS). E - mail: dantasle@uol.com.br

2

mais avançadas e não considerarem o necessário grau de integração (embeddedness) entre os

diferentes agentes sociais que é um pré-requisito essencial para a obtenção do êxito pretendido.

Neste sentido, a forma adotada na utilização dessas metodologias que pretendem interpretar e

intervir em processos de desenvolvimento que denominam de desenvolvimento local, endógeno,

autossustentado etc., é comprometida por não corresponder ao objeto real das suas investigações

e intervenções. O rigor científico exigido de quem trabalha com as ciências sociais fica assim

distorcido, confundindo e dificultando, em termos gerais, o sentido de políticas públicas

adotadas sob o rótulo dessas denominações. Por fim o trabalho propõe a retomada de esforços

no sentido da construção de novas alternativas de promoção do desenvolvimento a partir da

formação de capital humano e da adequação das novas técnicas de fomento à realidade e

características das regiões menos desenvolvidas.

Palavras-chave: Desenvolvimento Regional; Desenvolvimento Local;

Desenvolvimento Endógeno; Economia Espacial; Economia Brasileira; Economia

Baiana.

(JEL) Classification System: 01; 017; 018; 054

Introduction

Natura non facit saltum (Marshall, Darwin, Aristóteles)

This article intends to analyze the efforts to promote local development in border

regions of South America, specifically in the state of Bahia3, which has a territory

marked by severe economic, soil, and climatic differences, which uses multiple optical

space governed by the dictates of capital accumulation paths conditioned by the

demands of international market and determined by their specific processes of capital

accumulation, often divergent or disengaged with local processes of economic

development.

It is worth noting that the state of Bahia in absolute terms of economic importance in

Brazil is the seventh largest economy among the 27 states, and the 1st in the Northeast

region consisting of nine states. Spatially it has an area spanning 559,951 square

kilometers, occupying 6.59% of Brazilian territory and 36.34% of the Northeast. In

evaluating the territorial issue, realizes that a Bahia, in physical terms, it is larger than

metropolitan France and is roughly the size of the Iberian Peninsula.4

Despite its position in Brazil's economy with a GDP estimated by the SEI5 of 145

billion dollars for 2010, Bahia, in the same year, with a population of 14,016,906

inhabitants, of which 1/3 live in rural areas6 is identified by the Department of Social

Development and Hunger as the state with the highest concentration of people in

extreme poverty. There are 2.4 million individual in Bahia with a monthly income of

less than $70.00. The state ranks 19th

in “per capita” income among the 27 states. This is

the reality in which we work.

3 Bahia is one of 27 states that comprise the Federal Republic of Brazil

4 The State of Bahia accounts for 97% of the territory of the Iberian Peninsula.

5 Superintendence of Economic and Social Studies of Bahia - SEI 6 The rate of urbanization of Bahia, according to IBGE data varies from 72% considering the districts as a whole

and 67% computing only the municipal headquarters. There is controversy among demographers about the criteria

adopted by the IBGE for the determination of rates of urbanization

3

In this analysis we examine the new theoretical frameworks which intend to be

the instruments of regional development theory approaches gestating from

the breakdown of the Fordist paradigm and responding more effectively to the

characteristics and peculiarities of less developed economies, and often, not as

yet absorbed by the process of globalization. In this sense we will discuss

the teleological aspects of categories such as local development, endogenous, self-

sustainable, integrated and community that represent different strategies and, therefore,

comprise different approaches.

Besides this introduction and a conclusion, this study is composed of six parts that

address the contributions merited in the period between 1970 and 2000, and operational

issues related to the applications of theoretical tools related to local development

and endogenous development.

Life cycle of development theory

The concern with the process of accumulation of wealth, or capital as many want is

remote in the history of mankind. The scribes of the Torah, Greeks and Xenophon, Plato

and Aristotle and the legendary kings as Croesus of Lydia (561/546 BC), according to

Spinola (2011, p.19) wrote about it and the tools necessary for its production. 2,500

years ago the electrum stater was created -regarded as the first currency in the world. In

his words: Tesoureiros com o pé no chão descobriram o que os magos não viram: o

homem comum e os comerciantes da Lídia intuitivamente atribuíam valores

de troca a pedaços de prata e ouro, que viravam meios de pagamento. Reis

perceberam que alguém podia ganhar dinheiro com dinheiro: martelaram

símbolos no metal, padronizaram a relação ouro/prata (ratio) e cobraram

pela senhoriagem. Nasce a moeda. (My emphasis)

Mercantilists, physiocrats and then the classics, as in the eighteenth and nineteenth

centuries, directly or indirectly were also concerned about issues related to economic

growth that, over time, became (for some) economic development. The Scotsman

Adam Smith (1723/1790) was chosen by the mainstream as the father of economics

with his Inquiry into the Nature and Causes of the Wealth of Nations (1776).7 From this

work is born the theory of economic development.

The consolidation of the discipline as the theoretical support of countries economic

policies, especially regional planning, only occurred in the western world, especially in

underdeveloped countries,8 between decades 1930 and 1940 in the wake of the

Keynesian revolution which broke out in 1936 as a response to the failure of the liberal

paradigm, which was demoralized by the Great Depression of 1929 and after World

War II as a result of macro decisions (wide range decisions) emanating from the Bretton

Woods conference.

Also in Brazil, reflecting the international concerns about the development and

discussion by the various currents of thought began in the 1930s and 1940s, especially

7 There are controversies. Stanley Jevons (1835/1882), for example, considered such as Richard Cantillon

(1697/1734) for his Essai sur la nature du commerce en général (1755). Lopes, apud Costa (2005, p.35) also disputes

citing this primacy, and Cantilon, the fellow countryman Adam Smith, Sir James Steuart with his An Inquiry into the

Principles of Political Economy (1767). Some historians, including Schumpeter (1959) suggest that Adam Smith took

advantage of a lot of material produced by his predecessors and counterparts and had the habit, unethical, not to

mention them or give them their credit. 8 State planning, centralized, appeared in 1920 with the State Commission for Electrification of Russia (GoEiro) and

then with the State Planning Commission (Gosplan), which had broader goals. The Gosplan existed throughout the

life of the Soviet Union and served as a model and inspiration for the state planning in the world (Hobsbawm, 1995,

p.369)

4

during the immediate post-war era in the context of a global reconstruction through the

creation of the International Monetary Fund (FMI), International Bank for

Reconstruction and Development (BIRD), the Marshall Plan for Europe and the

constitution of the United Nations (UN), from which sprang the Inter-American

Development Bank (BID)9 and the Economic Commission for Latin America(CEPAL),

without a doubt one of the largest storehouses of ideas and proposals to

promote economic development in Latin America and the Caribbean.

Brazil was led at this time by the influence of Keynesian thought in the analysis made

by foreign authors devoted to the study of underdevelopment, including Raul Prebisch,

Albert Hirschman, and Gunnar Myrdal, Ragnar Nurkse and Brazilians as Celso

Furtado, Roberto Campos, Romulo Almeida, Ignacio Rangel, Helio Jaguaribe and

Maria da Conceição Tavares, among others who contributed to the formation of

guidelines by CEPAL and the Institute of Brazilian Studies - ISEB, theoretical

planning that came to develop the country, including the model of import substitution

and, politically, the called national-developmentalist paradigm.

In a historical review, of especially the social aspects, the results of the Brazilian

experience in planning its development are questionable. There is no denying the

country's significant economic growth in the second half of the twentieth century,

especially in the period from 1954 to 1980, thanks to the implementation of many

measures and actions recommended in the various plans drawn up during that

period. But it did not reach the desired pattern of economic development and at the

close of the century, the maintenance of a considerable inter-regional imbalance was

observed, high concentration of income and the permanence of a high proportion of the

population vegetating below the poverty line, the country continues to depend to a large

extent upon the moods of international capitalism.

In the late 1980s, marked by the avalanche of neoliberalism and the Washington

Consensus, theories of development went into recession in Brazil and throughout Latin

America in the midst of the ideas of minimal state and the abolition of state economic

planning. For the purpose of the crisis crossed development theory it is

worth transcribing the testimony of Satrústegui (2009) when he says: A lo largo de las últimas décadas, la economía del desarrollo y, más en

general, los estudios sobre desarrollo – entendidos de manera amplia como

el análisis de las condiciones capaces de favorecer el progreso y el bienestar

humanos - atraviesan por una cierta crisis. Frente al vigor y la relevancia de

los debates habidos durante la segunda mitad del siglo XX, pareciera que en

la actualidad los estudios sobre desarrollo han ido perdiendo importancia en

el ámbito de las ciencias sociales, en favor de enfoques centrados en el corto

plazo y/o en el análisis coyuntural de realidades particulares. Ello no es

ajeno a la complejidad del marco en el que se inscriben actualmente los

procesos de desarrollo, caracterizado por la interacción de fenómenos

económicos y sociales que operan en diferentes ámbitos y escalas, que van

de lo local a lo global, y que abarcan un creciente número de temas.

Tampoco debe pasarse por alto la situación por la que atraviesan las

ciencias sociales y muy especialmente la economía cuyas corrientes

dominantes han demostrado una notable incapacidad para enfrentar el

estudio de no pocos problemas del mundo actual, y para integrar en el

debate algunos enfoques que han ido surgiendo más recientemente. Es

preciso resaltar a este respecto el devastador efecto producido por el

reduccionismo conceptual y metodológico que ha ido imponiéndose en

ciertos ámbitos académicos, el cual ha dejado a los estudios sobre

desarrollo huérfanos de algunas perspectivas de épocas anteriores y dotados

de menos instrumentos para, paradójicamente, tener que afrontar el análisis

9 A replica of the BIRD for Latin America

5

de fenómenos mucho más complejos (un problema que ya fue apuntado hace

casi tres décadas por Hirschman, 1980, al referirse a la “vuelta a la

monoeconomía” en su famoso ensayo Auge y ocaso de la teoría económica

del desarrollo). (My emphasis).

In his criticism Professor Hirschman, provides indeed in fact, the neoliberal paradigm

and the return of what he called monoeconomia, ie, the validity of the universal

application of economic theory gestated in the first world. Said Hirschman (1980,

p.1057) Entiendo por rechazo de la tesis monoeconómica la concepción de que los

países subdesarrollados se separan como un grupo, mediante varias características

económicas específicas comunes a ellos, de los países industriales avanzados, y que el

análisis económico tradicional, concentrado en estos últimos países, deberá

modificarse, en consecuencia, en algunos aspectos importantes, cuando se aplique a los

países subdesarrollados. (My emphasis).

Hirschman claimed, rightly, against the devastating effect produced by

the conceptual and methodological reductionism that came to dominate the academy,

leaving unstructured scholars of issues relating to development, as new instruments

submitted were not up to the analysis of problems and coping increasingly complex.

Hirschman considered development economics as a sub discipline, derived

from economic theory. In his scientific rigor did not believe that this could

take a broader status.

New regional economy or variations on the same topic?

In international terms, the apparent exhaustion "Fordist" model of production10

and

the transformations of productive processes from the Decade of 1970, demonstrated by

the persistent decline of heavily industrialized regions (BENKO & LIPIETZ, 1995), and

the economic expansion of new regions (STORPER & SCOTT, 1995), have led to

substantial changes in theories and regional development policies

However, in a hurry to include Brazil in the new stages that are identified for

economic development and industrial first world countries, such as post-Fordism, for

example, it is worth noting the following placement of Lipietz (1995, p.21): La taylorización primitiva (o sanguinaria). Este concepto trata el caso de

deslocalización de segmentos limitados de ramas industriales fordistas hacia

formaciones sociales con tasas de explotación muy elevadas (en cuanto a

salarios, duración e intensidad del trabajo, etc.), siendo principalmente

exportados los productos hacia países más avanzados. En los sesenta, las

zonas francas y los Estados-talleres de Asia fueron las mejores ilustraciones

de esta estrategia, que se extiende hoy. Dos características de este régimen

deben ser señaladas. Primero, las actividades están sobre todo taylorizadas,

pero relativamente poco mecanizadas. La composición técnica del capital en

estas empresas es particularmente baja. Así, esta estrategia de

industrialización evita uno de los inconvenientes de la estrategia de

sustitución de importaciones: el coste de importación de bienes de equipo.

Por otro lado, movilizando una fuerza de trabajo mayoritariamente

femenina, incorpora todo el savoir-faire adquirido a través de la explotación

patriarcal doméstica. En segundo lugar, esta estrategia es "sanguinaria" en

10

According to Martinelli and Schoenberger, cited in Benko (1994, p.103) this depletion is more fiction than reality.

They say that : para os oligopólios e para as empresas gigantes, produção e concorrência são perfeitamente

compatíveis com um aumento da flexibilidade. Likewise Bussato and Costa Pinto (2005) add that: o movimento de

reestruturação produtiva (flexibilização/fragmentação da produção) se vincula a uma nova divisão internacional do

trabalho, associada, muito mais, à descentralização da produção da grande firma, mantendo ou até mesmo

ampliando o controle, do que aos movimentos autônomos das pequenas e médias empresas, estruturadas em novos

distritos industriais marshalianos .

6

el sentido en que Marx habla de la "legislación sanguinaria" en los albores

del capitalismo inglés. A la opresión ancestral de las mujeres une todas las

armas modernas de la represión anti obrera (sindicalismo oficial, ausencia

de derechos sociales, prisión y tortura de los opositores). El fordismo

periférico. Como el fordismo, se basa en el acoplamiento de la acumulación

intensiva y del crecimiento de los mercados finales. Pero permanece

"periférico" en este sentido, en que los circuitos mundiales de las ramas

productivas, los empleos cualificados (sobre todo en la ingeniería) se

mantienen mayoritariamente ajenos a estos países. Además, los recursos

corresponden a una específica combinación del consumo local de las clases

medias, del consumo creciente de bienes duraderos por los trabajadores y de

exportaciones a bajo precio hacia los capitalismos centrales. Tomemos el

ejemplo de Brasil. Brasil comenzó su industrialización antes y con mayor

éxito que la India, según un modelo similar. El golpe de Estado militar de

1964 suprimió de hecho las ventajas sociales de la legislación de Vargas. En

consecuencia, la "organización científica del trabajo" (tayloriana) se

desarrolló sin más límite que la dependencia tecnológica y la represión

sangrienta del sindicalismo, ofreciendo al capital una fuerza de trabajo

flexible. A finales de los años sesenta y en los primeros setenta, Brasil

desarrolló una industria muy competitiva, llevando a término su sustitución

de importaciones y desarrollando sus exportaciones industriales. Los

beneficios de esta taylorización primitiva se reinvirtieron en el desarrollo de

un fordismo periférico dualista. Una fracción de la población (la nueva clase

media) se estableció en un modo de vida casi fordista, beneficiándose los

salarlos en la segunda mitad de los años setenta del crecimiento de la

productividad resultante de la mecanización y la racionalización. Esta

fracción comprendía la mayor parte del sector formal (Amadeo y Camargo

[1990]). Por otra parte, un inmenso sector de los asalariados quedó excluído

de los beneficios del milagro brasileño: los ex campesinos "lewisiarios", los

trabajadores temporales, los trabajadores fijos mal pagados de las pequeñas

empresas. En los años ochenta, estalló la crisis de la deuda, después vino la

democracia. La evolución que resultó de ello es bastante compleja. Los

conflictos de reparto ocuparon la antesala de los conflictos industriales. Las

relaciones profesionales no pudieron establecerse en esta tempestad

permanente, que implicaba al ejército de reserva lewislano marginal, al

sector informal, a los distintos grados del sector formal. En esta situación

caótica, el porvenir de Brasil queda abierto a tres posibilidades: una vuelta

al taylorismo primitivo, una consolidación del fordismo periférico e incluso

una evolución hacia el fordismo con evoluciones locales hacia los aspectos

toyotistas. (My emphasis).

The issue of regional imbalances and underdevelopment, which worsened from the

new international order production, have become the object of new approaches

corresponding to different categories for analytical approaches to development. Quite

rightly, Boisier (2000, p.83) attacks the proliferation of these approaches: El desarrollo es la utopía social por excelencia. En un sentido metafórico es

el miltoniano paraíso perdido de la humanidad, nunca alcanzable ni

recuperable debido a su naturaleza asintótica al eje de su propia

realización. En la práctica, y el breve recuento de su historia más

contemporánea así lo prueba, cada vez que un grupo social se aproxima a lo

que es su propia idea de un “estado de desarrollo”, inmediatamente cambia

sus metas, sean cuantitativas o cualitativas. Demos gracias a ello: de otra

manera la humanidad todavía estaría dibujando bisontes en alguna cueva

del sur de Europa! Hay autores, como Veiga (1993), que hablan de la

“insustentable utopía del desarrollo”. Quizás en parte debido a ello, a su

propia naturaleza utópica y en parte también debido a nuestro sobre-

entrenamiento intelectual en las disyunciones analíticas cartesianas, se ha

producido paulatinamente una verdadera polisemia en torno al desarrollo,

7

es decir, una multiplicidad de significados cada uno de los cuales reclama

identidad única en relación al adjetivo con que se acompaña el sustantivo

“desarrollo”. Así se asiste a una verdadera proliferación de “desarrollos”:

desarrollo territorial, desarrollo regional, desarrollo local, desarrollo

endógeno, desarrollo sustentable, desarrollo humano y, en términos de su

dinámica, desarrollo “de abajo-arriba” (o su contrapartida, “del centro-

abajo”) y otros más. Incluso se observa, en el más puro estilo del

cartesianismo, la especialización funcional de instituciones académicas y

políticas, unas ocupadas de ésta o de esta otra categoría, como si fuesen

categorías independientes. (My emphasis).

Among the forms of development that are in fashion include those related to

sustainable development, local development and endogenous development. It is worth it

to make a brief critical commentary on each.

The focus of sustainable development came shortly after the Conference on the

Human Environment in Stockholm organized by the UN in 1972. Was generated as a

reaction of many intellectuals, the proposals for Donella H. Meadows, Dennis L.

Meadows, Jurgen Randers, and William W. Behrens III, researchers at the "Club of

Rome," which, in the study Limits to Growth, produced in 1973, concluded that kept the

level of industrialization, pollution, food production and exploitation of natural

resources, limit the development of the planet would be reached, no more than 100

years. The study turned to neo-Malthusianism as a solution to the impending

"catastrophe" world. Intellectuals, the developed countries themselves, believed in his

thesis dark Meadows and his group were advocating an end to growth of industrial

society and the prospects of developing countries, since from it, if the lock motivate the

development of poor countries with an ecological justification. Among the opponents of

Meadows include the Canadian Maurice Strong in 1973 that launched the concept of

eco-development, whose principles were formulated by Ignacy Sachs. As a derivation

of the concept emerged in 1987, the term sustainable development adopted by the

World Commission on Environment and Development (CMMAD), chaired by Gro

Harlem Brundtland, then Prime Minister of Norway, in its report Our Common Future

also known as the Brundtland Report. This new concept was finally incorporated as a

rule during the UN Conference on Environment and Development - the Earth Summit

1992 (Eco-92) - in Rio de Janeiro. According Ignacy Sachs paths of development would

be six: basic needs; solidarity with future generations, participation of the population

involved, preservation of natural resources and environment, development of a social

system that guarantees employment, social security and respect for other cultures;

education programs. It is thus a major concern of the supporters of sustainable

development, the future of new generations and the need for policies that could lead to a

harmonious development of mankind and, primarily, sustainable in periods to come.

Althought there are those who disagree with certain applications of the concepts of

sustainability. This is the case with Herman Daly, one of the originators of the concept

of uneconomic growth. According to Mander and Goldsmith (1996, p. 207) Daly said

sustained economic growth is no longer simply regarded as a serious option11

. Neither is

the development, at least sentido em que o termo é utilizado (envolvendo crescente

exploração dos recursos). Daly believes it is possible and desirable a quality

development which improves the quality of life, without exploitation of resources and

thus without increasing the impact on the natural environment.

Daly, apud Mander and Goldsmith (1996, p.208) states that in its physical

dimensions, the economy is a subsystem of the earth's ecosystem, which is finite, not

11 The author of this text does not endorse this view.

8

expandable, and materially closed. As it grows, the economic subsystem incorporates an

increasing proportion of total ecosystem itself, wanting to reach the limit, 100 percent.

Then, their growth is not sustainable. The term sustainable growth when applied to the

economy is seen as contradictory as narrative (a bad oxymoron), not as evocative

poetry. Also according to Daly: (…) os economistas dirão que o crescimento no PNB é uma mistura de

aumentos quantitativos e qualitativos e por isso não sujeito a leis físicas. E

têm alguma razão. Mudanças quantitativas e qualitativas são coisas muito

diferentes, sendo por isso melhor estar separadas e conhecidas por nomes

diferentes quando as procuramos num dicionário. Crescer significa

aumentar naturalmente no tamanho, com a adição de material através de

assimilação ou acreção, Desenvolver significa expandir ou realizar o

potencial de; fomentar gradualmente para um estádio mais pleno, maior,

ou melhor. Quando alguma coisa cresce, fica maior. Quando algo se

desenvolve, fica diferente. O ecossistema da Terra desenvolve-se, mas não

cresce. O seu subsistema, a economia, deve eventualmente parar de crescer,

mas continuar a desenvolver-se. O termo desenvolvimento sustentável,

portanto, faz sentido quando usado em economia, mas apenas se for

compreendido como desenvolvimento sem crescimento - melhoramento

qualitativo de uma base económica física que é mantida numa situação

estável através de uma exploração de matéria-energia dentro das

capacidades regenerativas e assimilativas do ecossistema. Actualmente o

termo desenvolvimento sustentável é usado como sinónimo para o oximoro

crescimento sustentável. Deve ser salvo deste engano. (p.208). (My

emphasis).

Nevertheless, it is the focus of local development that prevails in the examination of

the regional context, influencing policy proposals for tackling the problems caused by

regional differences. This approach has gained substantial impetus in Europe, thanks to

its process of political unification and especially economical when the proposed

development site to find space for application due to favorable conditions (in season)

and the substantial resources available for project funding systems productive sites that

previously operated in poor conditions.12

Boisier (2000, p.86) states that local development is a practice without theory, a

circumstance which accounts for a considerable confusion in the literature on the

subject. This is the same opinion as Guimaraes (1997, 281), for whom: "“The term

‘local economic development’ (LED) describes a practice without much theoretical

underpinning: a practice that would benefit from, but may actually never find,

comprehensive and applicable substantive theory”. Boisier asserts that local

development: (...) es un concepto que reconoce por lo menos tres matrices de origen.

Primeramente, el desarrollo local es la expresión de una lógica de

regulación horizontal que refleja la dialéctica centro / periferia, una lógica

dominante en la fase pre-industrial del capitalismo, pero que sigue vigente

aunque sin ser ya dominante. En segundo lugar, el desarrollo local es

considerado, sobre todo en Europa, como una respuesta a la crisis

macroeconómica y al ajuste, incluido el ajuste político supra-nacional

implícito en la conformación de la UE; casi todos los autores europeos

ubican el desarrollo local en esta perspectiva. En tercer lugar, el desarrollo

local es estimulado en todo el mundo por la globalización y por la

dialéctica global/local que ésta conlleva. En otras palabras, hay tres

racionalidades que pueden operar detrás del concepto de desarrollo local y

no pocos errores prácticos provienen de una mala combinación de

instrumentos y de tipo de racionalidad. Por ejemplo, se copian instituciones

y medidas de desarrollo local ensayadas en Europa (desarrollo local como

12 Leader (program) of the European Union

9

respuesta) y se intenta aplicarlas en América Latina (desarrollo local como

lógica de regulación horizontal). (2000, p.86) (My emphasis).

Still weaving theme considerations, Lastres (2004), seeking to take off from the

extensive use of the terminology, notes that the emphasis in local development:

(…) não deve ser confundida com ideias superficiais sobre crescimento

endógeno, as quais ganharam espaço com a propalada maior aceleração do

processo de globalização. A abordagem sistêmica parte da constatação de

que o desenvolvimento local é condicionado e subordinado também por

sistemas exógenos que podem ter dimensão e controle nacional ou

internacional. A partir desta constatação, nossa proposição conceitual é que

a capacidade de gerar inovações coloca-se como fator chave na

competitividade sustentada de empresas e nações, diversa da

competitividade espúria baseada em baixos salários e exploração intensiva e

predatória de recursos naturais. Tal capacidade é mobilizada com a

articulação dos diversos atores, produtores e usuários de bens, serviços e

tecnologias, sendo facilitada pela especialização em ambientes sócio-político

econômicos comuns. Assim, mostram-se completamente diferentes as

situações onde os arranjos produtivos fazem da região uma simples

hospedeira e onde se verifica a mobilização e o enraizamento das

capacitações produtivas e inovativas. Neste sentido é que argumentamos que

o foco das novas políticas de desenvolvimento deva focalizar centralmente a

promoção dos processos de geração, aquisição e difusão de conhecimentos.

Despite its current popularity of endogenous development, a category is as confused

as the previous one, with which is often confused. Many authors struggle to

find a distinction between local and endogenous. Sterile and an effort designed to

integrate the list of conceptual disagreements and controversies of regional

science. What we can assume is that local development is a refinement of regional

development as an endogenous development process is specifically located in a city,

with its own new models of global economic growth or aggregate that

make technological innovation a phenomenon internal to the function itself production,

as in Lucas and Romer, leaving in the past the neoclassical conception of "residual

factor" Solow, as shown by Barquero (1977). Thus, according Boisier (2000, p.93), el

desarrollo endógeno se produce como resultado de un fuerte proceso de articulación de

actores locales y de variadas formas de capital intangible, en el marco preferente de un

proyecto político colectivo de desarrollo del territorio en cuestión. It is also understood

as a process of growth and structural change that occurs as a result of transfers of

resources from traditional to modern activities; use of external economies and the

introduction of innovations which generates an increase in the well-being of the

population of a city.

Baquero (1999) argues that despite not specifically depend on government

management, the processes of endogenous development occurs through the productive

use of development potential that is generated when the institutions and mechanisms of

regulation of the territory operate efficiently.

But it is important to note that these processes depend on development, and much of

the social constructions, which are expressed in symbolic dimensions. Thus,

in planning can only be taken into account intangible factors that govern a particular

community, such as values, beliefs, rituals, tradition, knowledge atavistic, trust in the

relationship / community agents, and experiences striking collective behavior that

results in a web, commonly called culture.

The endogenous development also follows a territorial vision (not functional)

processes of growth and structural change that part of a hypothesis that the territory is

10

not a mere physical support of the objects, activities, and economic processes, but also

that it is a local agent of transformation.

Note the mark of Schumpterian theory of capitalist development in all the basic

formulation of the endogenous development approach. Note also that this theory does

not apply to developing countries, especially their lagging regions, as in the

northeastern Brazilian state of Bahia.13

Souza (1999, p.189) argues that a teoria schumpteriana é mais adequada para países

com elevado estoque potencial de empresários, com disponibilidade de capitais

emprestáveis e com grandes possibilidades de criar novas tecnologias próprias. E

conclui dizendo que essas condições nem sempre se verificam nos países

subdesenvolvidos. E o problema da teoria schumpteriana, como de qualquer outra

teoria sobre o desenvolvimento econômico é a dificuldade da sua generalização.

In this Schumpeterian plan can incorporate the focus of

endogenous models of industrial districts "marshalianos" the milieu inovateurs,

technology parks, clusters, local productive arrangements (LPAs) and the like.

The "discovery" of “marshallian industrial districts” in Third Italy14

by Arnaldo

Bagnasco (1977), Carlos Triglia (1986) and Sebastiano Brusco (1986) and the seminal

work of Michael Piore and Charles Sobel (1984) with the proposal of a new

technological paradigm, the flexible specialization, which would be a special industrial

district complemented by numerous other important contributions of Becattini (1989)

Scott and Storper (1986) and Walker (1989), are also meant to lay the foundations for a

new theory of development which would fit the role of protagonist micro and small

enterprises.

It is worth emphasizing, then, that without a prior local stock of skilled human capital

becomes impossible the occurrence of endogenous development that depends on when

it comes to this human capital, a typical process of embeddedness or rooting in the

community. The absence of such complicity is a restriction that makes it impossible the

occurrence of endogenous development processes in many Brazilian states, notably the

North and Northeast and in particular the Bahia.15

It was Friedman (1964) brilliantly said: “only cultural regions have the capacity to

develop ‘from within’, because only they have a collective sense of who they are, and

because their presence in the world makes a difference”.

Some Brazilian initiatives

13

The local study evaluates the agglomerative advantages and proximity to sources of knowledge and learning,

rooted in that singular territory, creating in their investigations, ad hoc lists of assets, capabilities,

standards, routines and habits, all duly region-specific. Many of these studies neglect the command most of these

processes is outside the space under analysis. Moreover, according to this literature, in this environment bearer

of "new development", stress civic engagement and solidarity-asssociative pass off a state that is presented only

as a "voyeur" of the will to produce comparative advantages and synergies located and sometimes, in

some philanthropic network for those excluded from the process of "natural selection". (Brandão,

2002). (My emphasis)

14 The so-called Third Italy comprises the region polarized by Bologna and Florence. The concept of industrial

district was coined by Alfred Marshall in 1900. 15

It's understandable effort of many organizations to promote the "push the envelope" to "discover" productive

arrangements (LPAs) and similar in primitive economies. The experience is worth at least as a learning process

11

The most important thing in planning is that its theoretical basis to explain and reflect

the reality studied. The construction of this base forged from experiences in other

countries, with different realities, demands that we promote comparative studies and

exchange of experiences aimed at the creation of adjustment mechanisms and strategies

in keeping with the subject of the application of the studies.

Despite these considerations have been intensified in Brazil local development

programs under the leadership of the National Bank of Economic and Social

Development (BNDES), the Brazilian Service to Support Micro and Small Enterprises

(SEBRAE) and with the active participation of other agencies to promote federal and

regional state.

The programs were running agglomerative conceptually influenced by the experience

of Italian industrial districts and Silicon Valley, California, within the paradigm of

flexible specialization. Despite the existence of widely diverse theoretical production in

the country, especially in academia, there is the contribution of the Institute of

Economics, Federal University of Rio de Janeiro (IE / UFRJ), which has for many

years, with the support of organizations developing international research projects in the

area of innovation. The IE / UFRJ operates the Research Network for Local Productive

and Innovative Systems (RedeSist) a network of interdisciplinary research that includes

the participation of several universities and research organizations in Brazil and abroad.

The approach to the problem in Brazil began with the cluster concept. According

RedeSist defines the term cluster is associated with the Anglo-American tradition and,

generally, refers to clusters, developing similar activities. Throughout its development,

the concept was nuances of interpretation. In the framework of neoclassical theory, the

new economic geography uses the term as a mere agglomeration of firms (Krugman's

approach). This term is still widely used in the country, notably by the appeal is on the

native expressions in English. Later come the local productive arrangements, known by

its acronym, a Brazilian version of APL. In 2003 RedeSist so defined:

(...) Are territorial agglomerations of economic agents, political and social -

with a focus on a specific set of economic activities - which

have even incipient bonds. Usually involve the participation and interaction

of companies - which can range from producing final goods and

services to suppliers of inputs and equipment, consulting and

service providers, distributors, customers, among others - and its various

forms of representation and association. They also include several other

public and private partnerships to: training of human resources, and technical

schools and universities, research, development and engineering, policy,

promotion and financing. (My emphasis).

The basic argument of the conceptual and analytical approach adopted by RedeSist

was that "where there is production of any good or service there will always be around

the same arrangement, involving actors and activities related to the acquisition of raw

materials, machinery and other inputs" (REDESIST, 2005). This interpretation, which

seems very extensive, provided justification for the more exotic projects to promote

clusters in less developed regions of the country.

In the Brazilian tradition of solving problems by decree (law), there are formal role in

many projects of this nature and, under this scope, are in practice often factoids or

embryonic elements. As an example of what has occurred with other terms in the past,

are expressions of totemic words, such as polo, local development, apps, endogenous

development and generate employment and income that infect the country and are

placed on the stump and political disseminated by the media. And every project

manager, especially in the public sector, clinging to her clusters, apls, etc. Without

12

caring much about the theoretical foundations of the matter. Cultural, sociological,

technological, etc.. are ignored and perspective orwerliana rewrites the history adjusting

to the reality of the need for media and political actors, without any regard for the weak,

inadequate and even the absence of the main actors.

In Bahia, for example, were "identified" 14 APLS by the State Government16

. In

practice they are all factoids. Note the following excerpt from the report prepared

REDESIST own:

The little interaction and few business links between companies and other

institutions such as universities and research centers, difficult actions that

encourage greater local cooperation and competitiveness. There is, thus, there

is still room for greater coordination between the actors of the clusters,

especially the joint inter-firm, as there is little initiative towards cooperation

on the part of entrepreneurs themselves. Firms in clusters, in general, have

not yet realized the opportunities to act jointly and nearby universities,

research centers and other local institutions in a manner consistent with the

typology presented by Tommaso and Dubbin (2000), and before

other characteristics of the firms present in the supported clusters, according

to the typology proposed by Mitelka and Farinelli (2005), one can broadly

classify the clusters of fish, caprinovinocultura, sisal, ornamental and derived

from sugar cane as informal settlements that bring together micro and small

businesses with relatively low technological level in relation to the

technological frontier of the industry or the joint interenterprise that generates

the dynamics of clusters and, in cases where the prevailing family

production, the owners have limited managerial capacity. Workers often have

low skills and little or no continuing education is offered to promote a

sustained improvement of their skills. Also according to the authors, these

clusters the coordination and networking between companies tend to be weak

and characterized by a limited perspective of growth, intense competition,

low morale and information sharing. Also according to the typology

proposed by the authors, the clusters of IT suppliers of the automotive chain,

clothing, plastic processing, fruit and tourism may fall as organized clusters,

where there is some interaction between local actors. It can be observed, also,

quite shy, some local coordination, manpower with some qualification, the

presence of managerial capacity, but there is a continuous innovative

capacity. (REDESIST, 2009, p.19)

It is emphasized that this argument does not intend to deny the efforts made to

promote local development that have been around since the 60s of last century, notably

by former SUDENE mobilized, which borrowed in India and the Netherlands

intervention models that fit the reality Northeast of small and medium enterprises in the

states with the formation of industrial clusters support (Nais) embryos that would be

SEBRAE.

In practice what happens is a change of label, with the eye needs to appear in the

media with a "novelty."

The dimensions of a development unviable

16 In a project linked to RedeSist and financed by World Bank

13

When dealing with issues related to development, notably the regional level, one

cannot fail to consider the observation of Furtado (1979), that this is a process which

goes through many stages which must be observed at least three dimensions:

a. the size of improving the effectiveness of the social system of production;

b. the extent of satisfaction of basic needs of the population;

c. the extent of achievement of objectives which aspire to the dominant groups

of society, and competing with the use of scarce resources

Also Baquero (1999) and Male (2001), identifies three important dimensions of

development: the first of an economic nature, which allows local entrepreneurs and

economic agents to efficiently use the factors of production and achieve productivity

levels that assures them be competitive in the markets and the second, and on a socio-

cultural, in which the economic and social actors are integrated with local institutions to

form a dense system of relations that embody the values of society in the process of

endogenous local development, and the third and last of a political that exploits through

local initiatives, creating a local environment that stimulates the production and

promote development.

There is, however, that the dimensions provided for the occurrence of economic

development, despite the increased efficiency of production in the regions, are not

sufficient conditions for that best meet the basic needs of the local population. Even it is

observed that the degradation of living conditions of some populations is due to the

introduction of more advanced techniques (Furtado, 1979).

In this respect, Nurkse (1965) argues that in poor countries the market forces

perpetuate poverty, since out of it, investments are needed to create a system enabling to

increase the productivity of the poor and their integration into the market. The difficulty

of this situation stems not only from the savings and low cultural level of the poor, but

also the lack of incentives and benefits for the construction of structures and clustering

activities that modernize some capital-intensive, giving them, however, competitive

scales of production.

Similarly, Hirschman (1958) points out that most poor countries have the resources to

reverse only in a few modern designs and thus can achieve balanced growth only in the

long term, through a sequential process of building the first one and then other industry,

correcting the imbalance in each step considered the most harmful to get closer to a

more balanced structure.

So, with all this, how would Arrighi (1997) there is a developmental illusion that

completely ignores the consolidated system of unequal exchanges between countries,

states or regions and the industrialized countries, states or regions of poor people living

on its periphery. Or, as predicted Walerstein (1998), that the existence of semi-

periphery and periphery is essential for the stability of the world capitalist economy.

As history shows the pattern of contemporary rich and poor countries in the world

established itself definitely in the nineteenth century. Confirmation of this pattern and

the prospect of irreversibility are demonstrated by Arrighi (1997), citing that Harrod

speaks of the division of personal wealth in two types that are separated by

insurmountable obstacles. The first refers to “democratic wealth” that is "an area about

the resources that, in principle, is available to all in direct relation to the intensity and

efficiency of their efforts" (Arrighi, 1997, p. 216). The second type consists of

“oligarchic wealth” that has nothing to do with the intensity and efficiency of who owns

and is never available to everyone, no matter how efficient they are intense and your

efforts. This is demonstrated by the concept of unequal exchange which explains that

14

we cannot have dominion over all products and services that incorporate the time and

effort of more than one person of average efficiency. "If someone has it, that means

someone else is working for less than he or she should check if all the efforts of equal

intensity and efficiency were rewarded equally" (Arrighi, 1997, p. 216). Thus the use or

enjoyment of oligarchical wealth involves the removal of others. What each of us can

do, it is not possible for everyone.

According to Arrighi transforms this reasoning for the analysis of global (and

regional) in a capitalist economy we find a problem of "adding" similar and more

serious than that faced by individuals as they seek to obtain personal wealth. "The

opportunities for economic advancement, as presented serially to a state at a time, there

are comparable opportunities for economic advancement for all states" (Arrighi 1997,

p.217). As stated by Wallerstein (1988), "Development in this sense is an illusion" In

other words, the wealth of the states of organic nucleus (the so-called First World

globally, the Southeast region in the Brazilian case) is analogous to Harrods’s oligarchic

wealth. This wealth cannot be generalized because it rests on processes of exploitation

and exclusion that assume continuous playback of poverty of the majority in a regional

context.

It shows what Santos (1979) when dealing with upper and lower circuits that

constitute the urban spaces in the underdeveloped regions, absolute or relative poverty

of the semi-states (Brazil Southeast over the first world) and peripheral (Northeast

Brazil about Brazil Southeast) induces continually elites to participate in the

international division of labour for rewards that make marginal benefits for the bulk of

the members states of the core organic

Arrighi (1997) states that the fight against exclusion leads to the search for a

comparatively safe niche in the international division of labour that leads to a semi-

peripheral states higher in some activities where I can get some kind of competitive

advantage which leads to a relationship unequal exchange (terms of trade deterioration)

in which the state provides goods incorporating semi peripheral manpower underpaid

for the states of organic nucleus in exchange for goods that incorporate well-paid

workforce and a more complete exclusion of the states peripheral activities of the state

in which semi peripheral seeks greater specialization.

In the same vein, Corsi (2002) stated that the fate of the peripheral countries would be

determined largely by the dynamics of structures in the world economy, making the

determinations in the background social, political, economic and cultural, as well as the

struggles social internal to each country. According to him during the last 25 years due

to failure of development programs, there was a greater distance from the

underdeveloped regions rich. And for this reason, the progress achieved by some

peripheral countries during the 50 to 70, only made back in the following decades. So

what was touted as a possibility at this time to overcome delay and underdeveloped

countries, the trend was reversed in combined and uneven development of capitalism.

Unequal exchanges that have always existed, and it seems, will continue to exist

between the organic core and the periphery, are characterized as a mechanism of

polarization-organic core-periphery, in which the hand-labor and capital are important

elements of current transfers and crucial in the constitution and reproduction of this

global capitalist economic structure. Thus, solving the problem between the organic

core and the periphery with the main focus industrialization is a "developmental source

of illusions" (ARRIGHI, 1997).

So the question of the increase of social inequalities on a global scale is quite

complex and cannot simplistically be reduced to an increase in inequality between rich

and poor regions of the world. The increase in poverty is not only observed in the

15

peripheral regions, but also gained importance in various regions within the countries

that make up the organic nucleus of the capitalist system (ALTVATER, 1995;

HOBSBAWM, 1995). Many authors, among them Castoriadis (1982), considered, until

recently, based on the experience of so-called "Golden Age" of capitalism (1945-1973),

this problem would be overcome in developed countries, showing that the system

capitalism could overcome poverty. They were wrong. The contradictions and

inequalities, which are markedly present in an increasingly integrated world, also appear

within each country and each city in the world. Right in the center of the system. That

is, the contrast between rich and poor, present in almost every major city in the world is

similar to what is known among the poor and rich regions of the planet.

It is important to state, from that fact that both the central and the peripheral countries

need to rely on policies that combine an accelerated formation of human capital

associated with efforts that seek to promote technological development-oriented foreign

trade, aimed at accelerating gains in competitiveness. There is thus no country reached

the level of economic and social development, without the support of science and

technology (S & T), since there is not the first (development) without the contribution

of the second (S & T).

Therefore, the main objective of promoting a policy is to promote efficient productive

systems, also based on industries such as services, making them able to follow the

dynamics of international technical progress, promoting the general welfare of society

as a whole.

Economic growth, training and development of enclaves in Bahia

According to Fonseca (1992, p.77) in his reading of the role of human capital in the

philosophy of Alfred Marshall, the analysis of the role of human capital in the economic

process is based on the idea that to increase output per capita and overcome the

economic backwardness, it is necessary to invest in the human factor of production.

There is a close relationship between nutrition, health and education on the one hand,

and hard work, initiative and innovation on the other. Poverty and incompetence are

closely interlinked at the microeconomic level.

Surely here is the result of the difficulty is to promote economic development in

regions like the Brazilian Northeast and specifically in the case of Bahia. The

introduction to this work we present statistics related to poverty in the state, must now

add other elements related to popular education.

According to the IBGE / PNAD Bahia in 2009, 1.8 million of Bahia with 15 years or

more are illiterates. Cannot read and write, which corresponds to 16.7% of the state

population in this age group. The economically active population, 55.4% do not have

complete elementary school, do not pass the fourth grade. Are functionally illiterate. In

summary 7 of every 10 people in Bahia are unable to develop any kind of skilled labour.

The framework described here, which, amazingly, it was much worse in the late

nineteenth century, comes from the absence of a policy of human capital formation from

the basic education that is of poorer quality in the state, the university confined to

dismantle a mediocre production of knowledge and little interaction with society,

coupled with the lack of investment in physical capital or, more precisely, in

infrastructure, since the region needs to create conditions favourable for the formation

of clusters of commercial activities, sized cities medium, and externalities for private

capital (reduction of transaction costs, production and transport, access to markets,

etc.)..

16

Deficiency of human capital can be expressed by the absence of local entrepreneurs

with industrial vocation. To overcome this lack of structural entrepreneur, according to

the Schumpeterian patterns, came from the State the burden of importing them from

other regions resulting in the formation of several small enclaves and deployment of

many companies of its kind footloose without any local or regional commitment.

Aggravating the insert to the limitations of the market caused by the poverty of the

majority population in Bahia.

With all these limitations Bahia from the 1970s, bet all your chips in fostering

industrialization. Used as weapons policies of tax incentives and the provision of

externalities generated from the construction of industrial districts in the interior and the

deployment of nodes, mediated by complex producers in the area of metallurgy,

petrochemical and nonferrous metals.

The option by cluster development, however, proved to be inadequate, since the pole

condition stems from the ability of industry to innovate and driving a legal and

administrative structure endogenous, responsible for the action-driving innovative, non-

existent in the models Bahia that ended up being managed by groups external business

without major commitments to the region.

He promotion of industrialization, based on the theory of development poles la

Perroux (1961), failed to create the conditions necessary for its implementation. This is

because the principle of the constitution of a polarizing region assumes a level of

demand generation induced strong enough to establish a productive complementarity

via intra-regional input-output, the backward linkage effects, and forward linkage

effects studied by Hirschman.

The regional environment consisting perrouxian required the production systems

were generating externalities through interdependencies and complementarities

productive sector of the regional urban network, so they could create a feedback

mechanism between their export base, the growth of regional income and residential

activities. In this sense, the biggest constraint to production systems peripherals

perrouxianas capture the externalities at the national level, is the strong regional

segmentation of the same, expressed by the predominance of low-income areas and

significantly uneven distribution of regional income.

Thus, in practice, the experience of industrialization Bahia presented difficulties in

applying the principles of polarization for the promotion of regional development, since

the "Location Theory" and "Theory of the Poles" provide explanations that do not bind

each other and are complicated matching

Therefore Bahia grew economically, through the formation of enclaves, specializing

in the production of intermediate goods, import businesses, entrepreneurs and skilled

manpower which of course did not contribute to its development in the stricto sensu.

This is because, despite the apparent material progress and technological advances

mirrored in some segments, all of the benefits of such initiatives were never available to

the millions of excluded people who are, overwhelmingly, the state population.

CONCLUSION

From what has been said that we shall end the only way to promote economic

development in Bahia and other backward regions of Northeast Brazil focuses on the

mobilization of efforts consistent and effective training of human capital quality and the

creation of mechanisms that avoid spills and retain capital in this country.

17

Althought, contrary to our eager immediacy, we must learn from Aristotle, Darwin

and Marshall also in the economy Natura non facit saltum. Or as Eduardo Giannetti da

Fonseca (1992, p. 85) there is no magic formula or preposterous plan which seeks to

raise the overnight efforts of productive efficiency. The process of formation of human

capital and organic growth described by Marshall is by nature slow.

We also conclude that the theory of endogenous local development and the way it

was designed in Europe, does not apply in the semi-periphery. This is because there is

no market, human resources and institutional qualified for the spontaneous emergence

of the processes of development of cities, similar to the Schumpeterian growth model

that considers the technical progress (innovation) as a key element.

As the economy is affected by changes in the world that surrounds it, and explaining

the causes of development should be sought, too, outside of studies of economic theory.

One of the fundamental pillars of the local development policy must reside in the

substantial improvement of qualification of human resources through the provision of

adequate training to the needs of different local production systems. To this may be

associated with initiatives to promote the diffusion of innovation in the productive

fabric of the locality or territory.

You can also forget certain prerequisites orthodox approach advocated in the

endogenous development, certain rules as technological innovation and the spectre of

globalization, which intend to transform each site heralds a function of the world - a

fantasy that is somewhat inconsequential - and adjust our techniques and procedures to

our reality. We can and must do as aptly SEBRAE produce catalytic effects of

modernity (without violating the local culture) in artisanal communities, as with the lace

of the Northeast and other craft activities. When working without patronizing the

activities historically and culturally rooted within communities, we do not run the risk

of high mortality rates plaguing small and medium sized companies throughout Brazil

promoted without further sociological evaluation criteria.

Despite the creation of an innovative environment constitute a long-term measure

characterized by the gradual engagement of people of good causes in the qualification

of innovation and technological modernization, through programs of qualification is

personnel, and technical activities to be productive, and especially the induction

cooperation between the actors involved, both between competing firms or between

users and producers, there is a high degree of innovation that is observed early second

sociological and anthropological standards will be enhanced and certainly produce

encouraging results.

It also requires a high degree of political courage and intellectual independence, not

to mention creativity, coping with neoclassical and neo-liberal establishment that

dominates the field of regional economy and dare heterodox measures.

This is the case, for example, measures of income transfer recently adopted by the

Brazilian government. Despite attacked by bourgeois elite as paternalistic or electoral,

programs like the "family allowance" has produced multiplier effects in the market and

led its growth. I daresay that the purchasing power to create a populace that ate almost

nothing to be steeped in poverty, the government is driving the development on the

demand side. Many companies - especially small and medium are motivated by this

new emerging market, and with them new jobs. Witnessed the beginning of acceleration

of Harrod and Domar, almost buried by the new "scientific". I believe that by injecting

resources on the poorest and conditioning these transfers counterparts as school

attendance, by both young and adults, and adherence to prophylactic health programs,

we will be inaugurating a new way of promoting development, considerably more

effective and should substitute its tax incentive programs and waiver of taxes, which are

18

the delight of the large multinationals and rich and successful entrepreneurs without that

with this, bring actual benefits for the population of the grantors.

All this, as the eminent professor Hirschman warned, implies the resumption of the

discussion about the development that it is essential these days, is due to the situation of

economic stagnation and the deterioration of social conditions in large parts of the

capitalist periphery in the context of globalization, is due to the very limits of ecological

consumer society is faced with the failure of the great powers whose economies plunge

pedantically on those classified as emerging. The challenge is to rethink the

development taking into consideration this set of problems, undressing elitist prejudices

inherited from the first world and building models and standards consistent with our

economic reality.

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