The Neoliberal Agrarian Model in Brazil

by João Pedro Stedile

Introduction

Since Fernando Collor’s 1989 presidential victory, and most notably since Fernando Henrique Cardoso’s two terms in office (1995–98 and 1999–2002, respectively), economic policies have been enacted in Brazil that represent a subordinate alliance of the country’s dominant classes with international capital. Unfortunately, under President Lula these same sectors have remained in control, and economic policy caters to their interests.

The results are well-known. There has been denationalization, the Brazilian economy is even more dependent, and our best and most profitable companies have been handed over to transnationals. Banks have had fantastic profits—Brazil has offered the highest interest rates in the world. The role of government in the economy has been cut back. Policies have been enacted that privilege the transfer of wealth to the financial system through the state sector.

Under Lula’s government, the neoliberal model is now being applied to the agrarian sector. An alliance has been sealed between the major capitalist farmers and ranchers and the multinationals that control the international commodity trade, the seed trade, pesticide production, and agri-industry.

This neoliberal vision for agriculture gives priority to large holdings that make extensive use of agrochemicals and pesticides and that concentrate on monocultures of commodity crops for export. They use just 60 million hectares of the 360 million available for cultivation, and 85 percent of the area under exploitation is used for sugarcane, soybeans, and coffee. Looking for higher labor productivity, large producers drive workers away from the countryside and exploit the few remaining, who earn the lowest wages in Brazil (the equivalent of about $150 a month). The road to competitiveness for our wise agrarian capitalists is one of large estates for larger-scale production, combined with among the worst rates of compensation. Their production techniques attack the environment, destroy biodiversity, and compromise natural resources through the large-scale use of pesticides, with a heavy cost to society and future generations.