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Industrial Policy and Democratic Corporate Governance: Perspectives from the BNDES Case

Year: 2024

Type: article

Abstract: In the early twenty-first century, Brazil underwent a remarkable economic boom, primarily driven by the Brazilian National Bank of Economic and Social Development (BNDES). This state-owned financial institution spearheaded a new industrial strategy, sponsoring domestic companies, such as Odebrecht and JBS, to their internationalisation. Nevertheless, this initial successful story took a dramatic turn. Over the years, the Brazilian national champions found themselves involved in corruption scandals, human rights violations and environmental damage, with BNDES indirectly funding these activities. This article seeks to discuss this crony capitalism arrangement, examining the role of corporate governance in safeguarding industrial policy from capture. We conclude by exploring how a democratic model of corporate governance could provide some insights for addressing this issue.

Source: European Business Law Review

DOI: 10.54648/eulr2024043

Authors: Arthur Sadami, Lucas Víspico, Mateus Bernardes

Institutions: Universidade de São Paulo, Escola de Direito de São Paulo da Fundação Getulio Vargas, Fundação Getulio Vargas, Harvard University

Language: English

Topic: State Capitalism and Financial Governance

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Peace, justice, and strong institutions, Decent work and economic growth

Open Access status: green

OpenAlex ID: W4403432485

FWCI:

Cites:

Cited by: 1

Related to: 10