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An Institutional Approach to Understanding Leftist Party Change in Brazil: Corporate Campaign Contributions, Leadership Moderation, and Societal Interests

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An Institutional Approach to Understanding Leftist Party Change in Brazil: Corporate Campaign Contributions, Leadership Moderation, and Societal Interests An Institutional Approach to Understanding Leftist Party Change in Brazil: Corporate Campaign Contributions, Leadership Moderation, and Societal Interests DISSERTATION Presented in Partial Fulfillment of the Requirements for the Degree Doctor of Philosophy in the Graduate School of The Ohio State University By Justin Earl Lance, B.A., M.A. Graduate Program in Political Science The Ohio State University 2010 Dissertation Committee: Professor Marcus Kurtz, Advisor Professor Sarah Brooks Professor Richard Gunther Copyright by Justin Earl Lance 2010 Abstract Leftist victories in Latin America in the early part of the 2000s sent shockwaves through the international investment community. Foreign investors, scared that these victories would be the end of pro-business, pro-market policies in the region, began to flee from a large part of the region. Yet, only a few short years later, it was clear that while some leftist victories, particularly those in Venezuela and Bolivia, were indeed the end of pro-business, pro-market policies, other leftist victories in the region were not. Some countries, in particular Brazil, continued with and, in some cases, deepened the pro-business policies of the previous administrations. This has simultaneously raised questions concerning the abandonment of the left‟s traditional constituency: labor unions. This dissertation examines why the left in Brazil, led by the Partido dos Trabalhadores (or PT) and its charismatic leader and current President of Brazil, Luiz Inácio Lula da Silva, continued with the pro-business policies of the prior center-right administration while simultaneously pursuing policies that the party‟s labor union allies opposed when the left took office in 2002. This dissertation relies on a new measure of party change in Brazil by focusing on interest group positions on legislation, thus showing how the leftist legislators in the Brazilian Câmara dos Deputados (Chamber of Deputies) increasingly supported policies that labor unions opposed, but the business sector supported. ii The theoretical premise of this work is that the institutions structuring “two arenas” of Brazilian politics were, in part, responsible for understanding changes in leftist deputies‟ voting patterns. The first arena, the congressional, stresses that the institutions governing behavior in the Câmara dos Deputados allowed those in leadership positions to enforce increased discipline on its members, causing deputies to vote in a manner consistent with the leadership‟s position. Because the party and chamber leadership increasingly advocated a pro-business and anti-labor position, it enforced discipline on its members, causing leftist deputies serving in government to vote in opposition to labor unions (their traditional allies) and in support of business. The second arena, the electoral, is governed by institutions that allow corporations to donate contributions to candidates‟ campaigns but that also prohibit donations from peak associations, including labor unions. Leftist deputies thus became reliant on corporations to fund the excessively high costs of their campaigns, which in turn caused leftist deputies to increasingly vote in favor of business interests and against their traditional labor union allies. The results of this project confirm that both factors (serving in government and levels of corporate campaign contributions) significantly impact leftist deputies‟ votes on legislation deemed important to business and union interests. Serving in government and receiving higher levels of corporate donations significantly increased leftist deputies‟ propensity to vote against their traditional constituency and in favor of business interests. These results not only help to explain the shift of the left in Brazil but also raise important questions regarding the implications of this shift for the representation of all segments of society. iii Dedication TO ERIN Who has supported me through everything And TO MY PARENTS For instilling in me the value of education iv Acknowledgment No dissertation would be possible without support and help from others, and this dissertation is no exception. To start, I would like to thank my dissertation committee who helped me to grow academically throughout my course of study. I am grateful to both Marcus Kurtz and Richard Gunther for providing me feedback when necessary and for pushing me to develop academically. I am especially grateful for the feedback, assistance, and support from Sarah Brooks, without which I wouldn‟t be in the position I am today. Thanks also needs to be extended to the Tinker Foundation for providing me with pre-dissertation research funds and to the Library of Congress whose research assistance in the Law Library made a large part of this dissertation possible. Go Bucks! A thank you also needs extended to those in the PRL, especially Bill Miller who helped me arrange resources and Dino Christensen and Anand Sokhey, who were not only great soccer teammates, but also provided valuable methodological guidance. On a personal level, this dissertation wouldn‟t have been possible without the support of family and friends who have provided me with the encouragement and compassion needed throughout the process. To my friends, special thanks are necessary to Dag Mossige, who has been about as good of a friend as anyone could ask for through this entire process. I also want to thank Konstantin Vossing for his support as well as his creative ways to enjoy soccer. To my other numerous friends I have made throughout this v process, including Lorenzo Zambernardi, Srdjan Vucetic and Anita Saha, Roman and Maddie Ivanchenko, and others, I thank you for providing me valuable friendship and much needed support and release when needed. My family has been eminently supportive of me through this entire process and they never wavered in their support for me. I am blessed that my parents, Charles and Debra Lance, and the rest of my family have always helped me whenever they could throughout this process, even though I‟m sure they often wondered what exactly it was that I was doing. I am especially indebted to them, and to my grandparents, for instilling in me the value of education when I was younger that has helped to feed my drive and curiosity to this day, and this process would not have been possible without their constant assistance. I am most indebted to my wife, Erin McAdams, who throughout our time together has been a constant source of strength. She read through numerous drafts and helped me overcome numerous obstacles through discussion. She has continually and unflinchingly supported me through this entire process. Her friendship has been unwavering, her love and devotion steadfast, and her encouragement resolute. I could not ask for- nor imagine- a better partner. It is to her and to my parents that this dissertation is dedicated. vi Vita May 8, 1980 ……………………………. Born – Elyria, Ohio. 2002……………………………………... B.A., summa cum laude, Political Science, Bethany College 2006……………………………………... M.A., Political Science, The Ohio State University 2002 to 2008…………………………... Graduate Research and Teaching Associate, The Ohio State University Fields of Study Major Field: Political Science vii Table of Contents Page Abstract…………………………………………………………………………….. ii Dedication………………………………………………………………………….. iv Acknowledgments………………………………………………………………….. v Vita…………………………………………………………………………………. vii List of Tables………………………………………………………………………... x List of Figures………………………………………………………………………. xiii CHAPTERS: 1. Introduction………………………………………………………………… 1 2. Institutional Incentives to Change: The Role of Campaign Finance and Governing in Leftist Party Change in Brazil.............................……….. 23 3. Institutional Incentives to Abandon Traditional Allies: Labor Unions, Leftist Legislators, and Behavior in the Brazilian Camâra dos Deputados from 1999-2007.......................................................……………………….. 58 4. Institutional Incentives to Support New Allies: Campaign Finance, Business, and Leftist Legislator Behavior in the Brazilian Camâra dos Deputados from 1999-2007 .........................………………………………. 97 5. Businesses‟ Continuing Influence on Congressional Behavior: Ex-Post Contributions and Voting Patterns by Leftist Deputies................................ 132 6. Conclusion...............................................................………………………... 160 Works Cited.………………………………………………………………………… 181 Appendix A: Coding of Pro-Labor Union Legislation based on Departamento Intersindical de Assessoria Parlamentar (DIAP) Position ...................…………… 193 viii Appendix B: Coding of Pro-Business Legislation based on Confederação Nacional da Indústria (CNI) Position ................…………………………………………………. 200 Appendix C: Logistic Regressions of Individual Business Votes…………………... 215 ix List of Tables Page 1.1 Vote Total for Articulação Faction Slate for National Directorate (1984-2009) ................…………………………………………………….. 10 1.2 1st Round Vote Total for Articulação Candidate for PT Party President 1995-2009) .................................................................................................. 11 1.3 Average Pro-Labor and Pro-Business Votes by Deputies (1999-2009) ...... 19 2.1 Percentage of Voters Who Remember Which Federal Deputy They Voted For in the Last Election ................………………....……………..……….. 33 2.2 Party Preferences of Voters by Union Affiliation ....……………..……….. 34 2.3 Average Campaign Contributions to Candidates for Federal Deputy (in Reais) by Election
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