State, capital, and the transformation of dependence: The Brazilian computer case

Abstract Brazil's policy of reserving the lower end of the computer market for indigenous firms has been controversial since its introduction 10 years ago. This paper examines the implications of the Brazilian computer case for the “dependency approach” and for current thinking on the role of the state in development. The case is considered to demonstrate that dependence is a dynamic condition whose character is continually being transformed and that the state, while it may play a crucial role in the initiation of new industries, is limited in its ability to act autonomously once an industry is established.

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