During the period 1930-80 Brazil exprienced a high growing rate, but after that its long-term anual rate fluctuated between 2% and 3%. Despite trade liberalization, changes in fiscal and social policies, something happened in this later period that prevented Brazil from regaining the rapid growth that it had exhibited previously. What might it have been?
In Latin America, Integration policies may generate additional trade, growth, and welfare, provided that policymakers harness greater complementarities between the software and hardware components of the agenda, that is, they undertake policy and regulatory reforms coupled with regionally coordinated investments. But why is integration more valuable today than it has been in the past? Further, what exactly are these software-hardware complementarities in investment?