O Estado e o crescimento econômico na America Latina: Brasil e México, 1880-1920.

The self-proclaimed "liberal" economic policies of Brazil and Mexico in the period of 1870-1910 emphasized, according to the conventional historiography, small government, foreign investment and free trade. We found, however, that the states in Brazil and Mexico, while graded by the theory of liberalism, in fact played central roles in economic development. Links to the international economy paradoxically forced some interventionist policies through new financial and monetary policies, raising tariffs, participation in commodity markets, and promotion of state enterprises such as the nationalization of the railroads. Officials were not driven simply by ideology and their actions changed over time. National sovereignty and political peace were as compelling as the balance of payments and per capita GNP. Markets did not run oar their own, they required states' guidance.