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In all cases we have filmed the best available copy. University Microfilms International 300 N. ZEEB RD„ ANN ARBOR, Ml 48106 8129044 K o h l , B a r b a r a A n n STATE AND CAPITAL: AGRICULTURAL POLICY IN POST-COUP BRAZIL The Ohio State University Ph.D. 1981 University Microfilms International 300 N. Zeeb Road, Ann Arbor. M I 48106 Copyright 1981 by Kohl, Barbara Ann All Rights Reserved STATE AND CAPITAL: AGRICULTURAL POLICY IN POST-COUP BRAZIL DISSERTATION Presented in Partial Fulfillment of the Requirements for the Degree Doctor of Philosophy in the Graduate School of The Ohio State University By Barbara A. Kohl, B.A., M.A. * * * * * The Ohio State University 1981 Reading Committee: Approved By William L. Flinn A. Eugene Havens Roscoe C. Hinkle David 0. Hansen Adviser Department of Agricultural Economics & Rural Sociology ACKNOWLEDGMENTS Any author of a dissertation incurs many debts in its development. I received support and stimulation from many colleagues and friends, at the Ohio State University, the University of Madison-Wisconsin and in Brazil. I am especially greatly indebted to my adviser, William L. Flinn, for his unfailing moral and intellectual support. I wish to acknowledge the support of Douglas H. Graham of the Ohio State University in directing me to important data sources, crucial for the empirical investigation in this dissertation. A. Eugene Havens of the University of Wisconsin-Madison critically read earlier versions of the central chapters of this dissertation. I owe him a special debt for his valuable comments and discussion which served to clear my mind at significant junctures in its development. I am indebted to Roscoe C. Hinkle of the Ohio State University, Eric 0. Wright, Steven Stern and A. Eugene Havens of the University of Wisconsin-Madison for excellent theoretical debates, review and questioning, without which the theoretical framework of this dissertation would not have been possible. Finally, I wish to thank Adriano R. Duarte, of the Universidade de Sao Paulo, and Jovino Moura Filho, from the Escola Superior de Agricultura de Lavras (Minas Gerais, Brazil) for very stimulating discussions on the theme of this dissertation. VITA September 13, 1951................ Born - Kansas City, Missouri 1973............................... B.A., Fort Hays Kansas State College, Hays, Kansas 1973-1975.......................... Teaching Assistant, Department of Economics, Kansas State University, Manhattan, Kansas 1975............................... Lecturer, Department of Continuing Education, Kansas State University, Manhattan, Kansas 1975............................... M.A. , Kansas State University, Man­ hattan, Kansas 1976-1978.......................... Lecturer and Research Coordinator, Escola Superior de Agricultura de Agricultura, Lavras, Minas Gerais, Brazil 1980............................... Participant in Committee on Institu­ tional Cooperation (CIC) Program, University of Wisconsin-Madison 1978-1981.......................... Research Associate, Department of Agricultural Economics & Rural Sociology, The Ohio State University, Columbus, Ohio PUBLICATIONS with William L. Flinn, "The Ideology of the American Agriculture Move­ ment." Quarterly Journal of Ideology, 111:2 (Summer 1979), 3-10. FIELDS OF STUDY Major Field: Rural Sociology Studies in Sociological Theory. Professors Roscoe C. Hinkle and Erik 0. Wright iii Studies in Peasant Economy. Professor A. Eugene Havens Studies in International Development. Professors William L. Flinn and David 0. Hansen iv TABLE OF CONTENTS Page ACKNOWLEDGMENTS...................................................... ii VITA............................................................,___ iii LIST OF TABLES.....................................................viii GLOSSARY OF ACRONYMS................................................xiv REGIONS, POLITICAL BOUNDARIES, BRAZIL............................. xvii INTRODUCTION.. ................................................... xviii Chapter 1. STATE, CLASS AND ECONOMIC INTERVENTION: A FRAME OF REFERENCE............................................ ......... 1 Section I. Marxist Theorization of the Capitalist State.... 1 A. Elements of a Transformative Theory of the State.... 3 B. The Ruling Class and State Power................... 17 Section II. Theoretical Framework for Analysis of the Capitalist Periphery: Imperialism and the Peripheral State............................... 25 A. Imperialism: The Creation of the Capitalist Periphery......... 25 B. The Peripheral Capitalist State.................... 33 Section III. The Agrarian Sector and the Role of the State in Capitalist Domination....................... 43 A. Conceptualization of the Peasantry and its Exploitation by Capital............................ 44 B. The State's Role in Exploitation of Agricultural Producers...........................................59 FOOTNOTES TO CHAPTER 1' 65 . A PROFILE OF THE BRAZILIAN POLITICAL ECONOMY................. 80 Introductory Remarks......................................... 80 Section I. A Brief Historical Sketch of Brazilian Capitalism, 1945-1964...........................82 A. Populism and Limited Democracy......................86 Section II. Military Dictatorship and Monopoly Capitalism, 1964-?.............................. 93 A. Constitution of the State Apparatus.................94 1. Bourgeois representation afterthe coup..........101 B. Major Forms of State Intervention..................103 1. The state productive sector..................... 104 2. State administration: the state's role in financing accumulation.......................... 114 Section III. Characteristics of Capital Accumulation, 1967 and After..................................... 117 A. The "Boom Period", 1967-1974...................... 118 B. Accumulation Slowdown, 1974-?......................128 Concluding Remarks ....................................... 134 FOOTNOTES TO CHAPTER 2 ........................................ 136 DESCRIPTIVE ANALYSIS OF AGRICULTURAL POLICY, 1966-1979.........145 Introductory Remarks......................................... 145 Section I. Rural Credit.....................................149 Section II. The Minimum Price Program and Storage Policies..157 Section III. Fiscal Incentives and Special Subsidies.........169 Section IV. Price Controls and Other Interventions in Marketing....................................... 179 Section V. Agricultural Research and Extension............. 186 FOOTNOTES TO CHAPTER 3.............. 192 EFFECTS OF AGRARIAN POLICY: TRANSFORMATION OF CLASS RELATIONS AND ITS CONTRADICTIONS.........................................197 Introductory Remarks.........................................197 Section I. Land Tenure and Labour Relations.................201 Section II. Agro-Industry: Major Characteristics, 1967- 1979 ............................................214 A. Agricultural Inputs and Machinery................... 220 B. Food Processing and Marketing...................... 226 Section III. Outcome of Capitalist Rationalization in Agriculture: Food Cost Inflation and Supply Shortages.......................................228 A. Characteristics of the Decline in Food Production...230 B. Welfare Effects and Balance of Payments P r o b l e m s ....237 FOOTNOTES TO CHAPTER 4 ....................................... 243 5. STATE, CAPITALISM AND AGRICULTURE: SOME CONCLUDING REMARKS.......248 APPENDIX...................................................... 262 LIST OF REFERENCES............................................298 vii LIST OF TABLES Table Page 1. Changes in the Distribution of Industrial Output, 1920- 1968.........................................................