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Challenges to the development of peripheral economies1

Noelio Dantasl Spinola2 Abstract

The methodological inadequacy of the theoretical tools upon which public policies are based, promoted, and applied in many remote regions of South America is one of the biggest challenges to the promotion of effective economic and social development. This study examines the state of Bahia, a Brazilian state located in its northeastern region. It discusses the contributions relating to new programs to promote economic development in the context of world economy, and their effectiveness in the case of Bahia. It analyzes the teleological aspects of the new categories included in the theory of regional development, such as local development, endogenous, self-sustaining, and community that represent different strategies and, therefore, comprise of different approaches. As a matter of hermeneutics it examines methodological aspects and the operational use of these categories, demonstrating their lack of adherence to the phenomena observed in the culture of peripheral communities, in their original formulations derived in different scopes, built from more technologically advanced realities not considering the necessary degree of integration (embeddedness) between the different actors being a prerequisite for obtaining the desired success. In this sense, the form adopted in the use of these methodologies that aim to interpret and intervene in development processes that call for local development, endogenous, self-sustaining and so on is compromised by not corresponding to the real object of their investigations and interventions. The scientific rigor required of those who work with the social sciences becomes distorted, confused and causes difficulties, in general terms, in making sense of public policies adopted under the label of these denominations. Finally, the paper proposes the resumption of efforts to build new alternatives for promoting development through the formation of human capital and the appropriateness of new techniques for promoting the reality and characteristics of less developed regions.

Key Words: Regional Development; Local Development; Endogenous Development; Space Economics; Brazilian Economy; Bahia Economy. Resumo
A inadequao metodolgica do ferramental terico em que se fundamentam as polticas pblicas de fomento aplicadas em muitas regies perifricas da Amrica do Sul constitui um dos maiores desafios promoo do seu efetivo desenvolvimento econmico e social. Neste estudo examina-se a situao da Bahia, um estado brasileiro localizado em sua regio Nordeste. Aborda as novas contribuies relacionadas com os programas de promoo do desenvolvimento econmico num contexto de economia-mundo, e a sua eficcia no caso da Bahia. Analisa os aspectos teleolgicos das novas categorias inseridas na teoria do desenvolvimento regional, tais como desenvolvimento local, endgeno, autossustentvel, e comunitrio que representam diferentes estratgias e, por isto mesmo, comportam diferentes abordagens. A partir de uma questo de hermenutica analisa aspectos metodolgicos e operacionais da utilizao destas categorias, demonstrando a sua falta de aderncia aos fenmenos observados na cultura das comunidades perifricas, por derivarem em suas formulaes originais de escopos diferentes, construdos a partir de realidades tecnologicamente

Paper presented at the 9th World Congress of Regional Science Association International. May 9 12 - 2012 Timisoara, Romania. [ID: 1705] 2 Doutor em Geografia e Histria pela Universidade de Barcelona (ES). Professor Titular de Economia Regional e Mtodos de Anlise Regional no Programa de Ps-Graduao em Desenvolvimento Regional e Urbano (PPDRU) da Universidade Salvador (UNIFACS). E - mail: dantasle@uol.com.br

2 mais avanadas e no considerarem o necessrio grau de integrao (embeddedness) entre os diferentes agentes sociais que um pr-requisito essencial para a obteno do xito pretendido. Neste sentido, a forma adotada na utilizao dessas metodologias que pretendem interpretar e intervir em processos de desenvolvimento que denominam de desenvolvimento local, endgeno, autossustentado etc., comprometida por no corresponder ao objeto real das suas investigaes e intervenes. O rigor cientfico exigido de quem trabalha com as cincias sociais fica assim distorcido, confundindo e dificultando, em termos gerais, o sentido de polticas pblicas adotadas sob o rtulo dessas denominaes. Por fim o trabalho prope a retomada de esforos no sentido da construo de novas alternativas de promoo do desenvolvimento a partir da formao de capital humano e da adequao das novas tcnicas de fomento realidade e caractersticas das regies menos desenvolvidas.

Palavras-chave: Desenvolvimento Regional; Desenvolvimento Local; Desenvolvimento Endgeno; Economia Espacial; Economia Brasileira; Economia Baiana. (JEL) Classification System: 01; 017; 018; 054

Introduction Natura non facit saltum

(Marshall, Darwin, Aristteles)

This article intends to analyze the efforts to promote local development in border regions of South America, specifically in the state of Bahia3, which has a territory marked by severe economic, soil, and climatic differences, which uses multiple optical space governed by the dictates of capital accumulation paths conditioned by the demands of international market and determined by their specific processes of capital accumulation, often divergent or disengaged with local processes of economic development. It is worth noting that the state of Bahia in absolute terms of economic importance in Brazil is the seventh largest economy among the 27 states, and the 1st in the Northeast region consisting of nine states. Spatially it has an area spanning 559,951 square kilometers, occupying 6.59% of Brazilian territory and 36.34% of the Northeast. In evaluating the territorial issue, realizes that a Bahia, in physical terms, it is larger than metropolitan France and is roughly the size of the Iberian Peninsula.4 Despite its position in Brazil's economy with a GDP estimated by the SEI5 of 145 billion dollars for 2010, Bahia, in the same year, with a population of 14,016,906 inhabitants, of which 1/3 live in rural areas6 is identified by the Department of Social Development and Hunger as the state with the highest concentration of people in extreme poverty. There are 2.4 million individual in Bahia with a monthly income of less than $70.00. The state ranks 19th in per capita income among the 27 states. This is the reality in which we work.

3 4

Bahia is one of 27 states that comprise the Federal Republic of Brazil The State of Bahia accounts for 97% of the territory of the Iberian Peninsula. 5 Superintendence of Economic and Social Studies of Bahia - SEI 6 The rate of urbanization of Bahia, according to IBGE data varies from 72% considering the districts as a whole and 67% computing only the municipal headquarters. There is controversy among demographers about the criteria adopted by the IBGE for the determination of rates of urbanization

In this analysis we examine the new theoretical frameworks which intend to be the instruments of regional development theory approaches gestating from the breakdown of the Fordist paradigm and responding more effectively to the characteristics and peculiarities of less developed economies, and often, not as yet absorbed by the process of globalization. In this sense we will discuss the teleological aspects of categories such as local development, endogenous, selfsustainable, integrated and community that represent different strategies and, therefore, comprise different approaches. Besides this introduction and a conclusion, this study is composed of six parts that address the contributions merited in the period between 1970 and 2000, and operational issues related to the applications of theoretical tools related to local development and endogenous development. Life cycle of development theory The concern with the process of accumulation of wealth, or capital as many want is remote in the history of mankind. The scribes of the Torah, Greeks and Xenophon, Plato and Aristotle and the legendary kings as Croesus of Lydia (561/546 BC), according to Spinola (2011, p.19) wrote about it and the tools necessary for its production. 2,500 years ago the electrum stater was created -regarded as the first currency in the world. In his words:
Tesoureiros com o p no cho descobriram o que os magos no viram: o homem comum e os comerciantes da Ldia intuitivamente atribuam valores de troca a pedaos de prata e ouro, que viravam meios de pagamento. Reis perceberam que algum podia ganhar dinheiro com dinheiro: martelaram smbolos no metal, padronizaram a relao ouro/prata (ratio) e cobraram pela senhoriagem. Nasce a moeda. (My emphasis)

Mercantilists, physiocrats and then the classics, as in the eighteenth and nineteenth centuries, directly or indirectly were also concerned about issues related to economic growth that, over time, became (for some) economic development. The Scotsman Adam Smith (1723/1790) was chosen by the mainstream as the father of economics with his Inquiry into the Nature and Causes of the Wealth of Nations (1776).7 From this work is born the theory of economic development. The consolidation of the discipline as the theoretical support of countries economic policies, especially regional planning, only occurred in the western world, especially in underdeveloped countries,8 between decades 1930 and 1940 in the wake of the Keynesian revolution which broke out in 1936 as a response to the failure of the liberal paradigm, which was demoralized by the Great Depression of 1929 and after World War II as a result of macro decisions (wide range decisions) emanating from the Bretton Woods conference. Also in Brazil, reflecting the international concerns about the development and discussion by the various currents of thought began in the 1930s and 1940s, especially

There are controversies. Stanley Jevons (1835/1882), for example, considered such as Richard Cantillon (1697/1734) for his Essai sur la nature du commerce en gnral (1755). Lopes, apud Costa (2005, p.35) also disputes citing this primacy, and Cantilon, the fellow countryman Adam Smith, Sir James Steuart with his An Inquiry into the Principles of Political Economy (1767). Some historians, including Schumpeter (1959) suggest that Adam Smith took advantage of a lot of material produced by his predecessors and counterparts and had the habit, unethical, not to mention them or give them their credit. 8 State planning, centralized, appeared in 1920 with the State Commission for Electrification of Russia (GoEiro) and then with the State Planning Commission (Gosplan), which had broader goals. The Gosplan existed throughout the life of the Soviet Union and served as a model and inspiration for the state planning in the world (Hobsbawm, 1995, p.369)

during the immediate post-war era in the context of a global reconstruction through the creation of the International Monetary Fund (FMI), International Bank for Reconstruction and Development (BIRD), the Marshall Plan for Europe and the constitution of the United Nations (UN), from which sprang the Inter-American Development Bank (BID)9 and the Economic Commission for Latin America(CEPAL), without a doubt one of the largest storehouses of ideas and proposals to promote economic development in Latin America and the Caribbean. Brazil was led at this time by the influence of Keynesian thought in the analysis made by foreign authors devoted to the study of underdevelopment, including Raul Prebisch, Albert Hirschman, and Gunnar Myrdal, Ragnar Nurkse and Brazilians as Celso Furtado, Roberto Campos, Romulo Almeida, Ignacio Rangel, Helio Jaguaribe and Maria da Conceio Tavares, among others who contributed to the formation of guidelines by CEPAL and the Institute of Brazilian Studies - ISEB, theoretical planning that came to develop the country, including the model of import substitution and, politically, the called national-developmentalist paradigm. In a historical review, of especially the social aspects, the results of the Brazilian experience in planning its development are questionable. There is no denying the country's significant economic growth in the second half of the twentieth century, especially in the period from 1954 to 1980, thanks to the implementation of many measures and actions recommended in the various plans drawn up during that period. But it did not reach the desired pattern of economic development and at the close of the century, the maintenance of a considerable inter-regional imbalance was observed, high concentration of income and the permanence of a high proportion of the population vegetating below the poverty line, the country continues to depend to a large extent upon the moods of international capitalism. In the late 1980s, marked by the avalanche of neoliberalism and the Washington Consensus, theories of development went into recession in Brazil and throughout Latin America in the midst of the ideas of minimal state and the abolition of state economic planning. For the purpose of the crisis crossed development theory it is worth transcribing the testimony of Satrstegui (2009) when he says:
A lo largo de las ltimas dcadas, la economa del desarrollo y, ms en general, los estudios sobre desarrollo entendidos de manera amplia como el anlisis de las condiciones capaces de favorecer el progreso y el bienestar humanos - atraviesan por una cierta crisis. Frente al vigor y la relevancia de los debates habidos durante la segunda mitad del siglo XX, pareciera que en la actualidad los estudios sobre desarrollo han ido perdiendo importancia en el mbito de las ciencias sociales, en favor de enfoques centrados en el corto plazo y/o en el anlisis coyuntural de realidades particulares. Ello no es ajeno a la complejidad del marco en el que se inscriben actualmente los procesos de desarrollo, caracterizado por la interaccin de fenmenos econmicos y sociales que operan en diferentes mbitos y escalas, que van de lo local a lo global, y que abarcan un creciente nmero de temas. Tampoco debe pasarse por alto la situacin por la que atraviesan las ciencias sociales y muy especialmente la economa cuyas corrientes dominantes han demostrado una notable incapacidad para enfrentar el estudio de no pocos problemas del mundo actual, y para integrar en el debate algunos enfoques que han ido surgiendo ms recientemente. Es preciso resaltar a este respecto el devastador efecto producido por el reduccionismo conceptual y metodolgico que ha ido imponindose en ciertos mbitos acadmicos, el cual ha dejado a los estudios sobre desarrollo hurfanos de algunas perspectivas de pocas anteriores y dotados de menos instrumentos para, paradjicamente, tener que afrontar el anlisis

A replica of the BIRD for Latin America

de fenmenos mucho ms complejos (un problema que ya fue apuntado hace casi tres dcadas por Hirschman, 1980, al referirse a la vuelta a la monoeconoma en su famoso ensayo Auge y ocaso de la teora econmica del desarrollo). (My emphasis).

In his criticism Professor Hirschman, provides indeed in fact, the neoliberal paradigm and the return of what he called monoeconomia, ie, the validity of the universal application of economic theory gestated in the first world. Said Hirschman (1980, p.1057) Entiendo por rechazo de la tesis monoeconmica la concepcin de que los pases subdesarrollados se separan como un grupo, mediante varias caractersticas econmicas especficas comunes a ellos, de los pases industriales avanzados, y que el anlisis econmico tradicional, concentrado en estos ltimos pases, deber modificarse, en consecuencia, en algunos aspectos importantes, cuando se aplique a los pases subdesarrollados. (My emphasis). Hirschman claimed, rightly, against the devastating effect produced by the conceptual and methodological reductionism that came to dominate the academy, leaving unstructured scholars of issues relating to development, as new instruments submitted were not up to the analysis of problems and coping increasingly complex. Hirschman considered development economics as a sub discipline, derived from economic theory. In his scientific rigor did not believe that this could take a broader status. New regional economy or variations on the same topic? In international terms, the apparent exhaustion "Fordist" model of production10 and the transformations of productive processes from the Decade of 1970, demonstrated by the persistent decline of heavily industrialized regions (BENKO & LIPIETZ, 1995), and the economic expansion of new regions (STORPER & SCOTT, 1995), have led to substantial changes in theories and regional development policies However, in a hurry to include Brazil in the new stages that are identified for economic development and industrial first world countries, such as post-Fordism, for example, it is worth noting the following placement of Lipietz (1995, p.21):
La taylorizacin primitiva (o sanguinaria). Este concepto trata el caso de deslocalizacin de segmentos limitados de ramas industriales fordistas hacia formaciones sociales con tasas de explotacin muy elevadas (en cuanto a salarios, duracin e intensidad del trabajo, etc.), siendo principalmente exportados los productos hacia pases ms avanzados. En los sesenta, las zonas francas y los Estados-talleres de Asia fueron las mejores ilustraciones de esta estrategia, que se extiende hoy. Dos caractersticas de este rgimen deben ser sealadas. Primero, las actividades estn sobre todo taylorizadas, pero relativamente poco mecanizadas. La composicin tcnica del capital en estas empresas es particularmente baja. As, esta estrategia de industrializacin evita uno de los inconvenientes de la estrategia de sustitucin de importaciones: el coste de importacin de bienes de equipo. Por otro lado, movilizando una fuerza de trabajo mayoritariamente femenina, incorpora todo el savoir-faire adquirido a travs de la explotacin patriarcal domstica. En segundo lugar, esta estrategia es "sanguinaria" en

According to Martinelli and Schoenberger, cited in Benko (1994, p.103) this depletion is more fiction than reality. They say that : para os oligoplios e para as empresas gigantes, produo e concorrncia so perfeitamente compatveis com um aumento da flexibilidade. Likewise Bussato and Costa Pinto (2005) add that: o movimento de reestruturao produtiva (flexibilizao/fragmentao da produo) se vincula a uma nova diviso internacional do trabalho, associada, muito mais, descentralizao da produo da grande firma, mantendo ou at mesmo ampliando o controle, do que aos movimentos autnomos das pequenas e mdias empresas, estruturadas em novos distritos industriais marshalianos .

el sentido en que Marx habla de la "legislacin sanguinaria" en los albores del capitalismo ingls. A la opresin ancestral de las mujeres une todas las armas modernas de la represin anti obrera (sindicalismo oficial, ausencia de derechos sociales, prisin y tortura de los opositores). El fordismo perifrico. Como el fordismo, se basa en el acoplamiento de la acumulacin intensiva y del crecimiento de los mercados finales. Pero permanece "perifrico" en este sentido, en que los circuitos mundiales de las ramas productivas, los empleos cualificados (sobre todo en la ingeniera) se mantienen mayoritariamente ajenos a estos pases. Adems, los recursos corresponden a una especfica combinacin del consumo local de las clases medias, del consumo creciente de bienes duraderos por los trabajadores y de exportaciones a bajo precio hacia los capitalismos centrales. Tomemos el ejemplo de Brasil. Brasil comenz su industrializacin antes y con mayor xito que la India, segn un modelo similar. El golpe de Estado militar de 1964 suprimi de hecho las ventajas sociales de la legislacin de Vargas. En consecuencia, la "organizacin cientfica del trabajo" (tayloriana) se desarroll sin ms lmite que la dependencia tecnolgica y la represin sangrienta del sindicalismo, ofreciendo al capital una fuerza de trabajo flexible. A finales de los aos sesenta y en los primeros setenta, Brasil desarroll una industria muy competitiva, llevando a trmino su sustitucin de importaciones y desarrollando sus exportaciones industriales. Los beneficios de esta taylorizacin primitiva se reinvirtieron en el desarrollo de un fordismo perifrico dualista. Una fraccin de la poblacin (la nueva clase media) se estableci en un modo de vida casi fordista, beneficindose los salarlos en la segunda mitad de los aos setenta del crecimiento de la productividad resultante de la mecanizacin y la racionalizacin. Esta fraccin comprenda la mayor parte del sector formal (Amadeo y Camargo [1990]). Por otra parte, un inmenso sector de los asalariados qued excludo de los beneficios del milagro brasileo: los ex campesinos "lewisiarios", los trabajadores temporales, los trabajadores fijos mal pagados de las pequeas empresas. En los aos ochenta, estall la crisis de la deuda, despus vino la democracia. La evolucin que result de ello es bastante compleja. Los conflictos de reparto ocuparon la antesala de los conflictos industriales. Las relaciones profesionales no pudieron establecerse en esta tempestad permanente, que implicaba al ejrcito de reserva lewislano marginal, al sector informal, a los distintos grados del sector formal. En esta situacin catica, el porvenir de Brasil queda abierto a tres posibilidades: una vuelta al taylorismo primitivo, una consolidacin del fordismo perifrico e incluso una evolucin hacia el fordismo con evoluciones locales hacia los aspectos toyotistas. (My emphasis).

The issue of regional imbalances and underdevelopment, which worsened from the new international order production, have become the object of new approaches corresponding to different categories for analytical approaches to development. Quite rightly, Boisier (2000, p.83) attacks the proliferation of these approaches:
El desarrollo es la utopa social por excelencia. En un sentido metafrico es el miltoniano paraso perdido de la humanidad, nunca alcanzable ni recuperable debido a su naturaleza asinttica al eje de su propia realizacin. En la prctica, y el breve recuento de su historia ms contempornea as lo prueba, cada vez que un grupo social se aproxima a lo que es su propia idea de un estado de desarrollo, inmediatamente cambia sus metas, sean cuantitativas o cualitativas. Demos gracias a ello: de otra manera la humanidad todava estara dibujando bisontes en alguna cueva del sur de Europa! Hay autores, como Veiga (1993), que hablan de la insustentable utopa del desarrollo. Quizs en parte debido a ello, a su propia naturaleza utpica y en parte tambin debido a nuestro sobreentrenamiento intelectual en las disyunciones analticas cartesianas, se ha producido paulatinamente una verdadera polisemia en torno al desarrollo,

es decir, una multiplicidad de significados cada uno de los cuales reclama identidad nica en relacin al adjetivo con que se acompaa el sustantivo desarrollo. As se asiste a una verdadera proliferacin de desarrollos: desarrollo territorial, desarrollo regional, desarrollo local, desarrollo endgeno, desarrollo sustentable, desarrollo humano y, en trminos de su dinmica, desarrollo de abajo-arriba (o su contrapartida, del centroabajo) y otros ms. Incluso se observa, en el ms puro estilo del cartesianismo, la especializacin funcional de instituciones acadmicas y polticas, unas ocupadas de sta o de esta otra categora, como si fuesen categoras independientes. (My emphasis).

Among the forms of development that are in fashion include those related to sustainable development, local development and endogenous development. It is worth it to make a brief critical commentary on each. The focus of sustainable development came shortly after the Conference on the Human Environment in Stockholm organized by the UN in 1972. Was generated as a reaction of many intellectuals, the proposals for Donella H. Meadows, Dennis L. Meadows, Jurgen Randers, and William W. Behrens III, researchers at the "Club of Rome," which, in the study Limits to Growth, produced in 1973, concluded that kept the level of industrialization, pollution, food production and exploitation of natural resources, limit the development of the planet would be reached, no more than 100 years. The study turned to neo-Malthusianism as a solution to the impending "catastrophe" world. Intellectuals, the developed countries themselves, believed in his thesis dark Meadows and his group were advocating an end to growth of industrial society and the prospects of developing countries, since from it, if the lock motivate the development of poor countries with an ecological justification. Among the opponents of Meadows include the Canadian Maurice Strong in 1973 that launched the concept of eco-development, whose principles were formulated by Ignacy Sachs. As a derivation of the concept emerged in 1987, the term sustainable development adopted by the World Commission on Environment and Development (CMMAD), chaired by Gro Harlem Brundtland, then Prime Minister of Norway, in its report Our Common Future also known as the Brundtland Report. This new concept was finally incorporated as a rule during the UN Conference on Environment and Development - the Earth Summit 1992 (Eco-92) - in Rio de Janeiro. According Ignacy Sachs paths of development would be six: basic needs; solidarity with future generations, participation of the population involved, preservation of natural resources and environment, development of a social system that guarantees employment, social security and respect for other cultures; education programs. It is thus a major concern of the supporters of sustainable development, the future of new generations and the need for policies that could lead to a harmonious development of mankind and, primarily, sustainable in periods to come. Althought there are those who disagree with certain applications of the concepts of sustainability. This is the case with Herman Daly, one of the originators of the concept of uneconomic growth. According to Mander and Goldsmith (1996, p. 207) Daly said sustained economic growth is no longer simply regarded as a serious option11. Neither is the development, at least sentido em que o termo utilizado (envolvendo crescente explorao dos recursos). Daly believes it is possible and desirable a quality development which improves the quality of life, without exploitation of resources and thus without increasing the impact on the natural environment. Daly, apud Mander and Goldsmith (1996, p.208) states that in its physical dimensions, the economy is a subsystem of the earth's ecosystem, which is finite, not

The author of this text does not endorse this view.

expandable, and materially closed. As it grows, the economic subsystem incorporates an increasing proportion of total ecosystem itself, wanting to reach the limit, 100 percent. Then, their growth is not sustainable. The term sustainable growth when applied to the economy is seen as contradictory as narrative (a bad oxymoron), not as evocative poetry. Also according to Daly:
() os economistas diro que o crescimento no PNB uma mistura de aumentos quantitativos e qualitativos e por isso no sujeito a leis fsicas. E tm alguma razo. Mudanas quantitativas e qualitativas so coisas muito diferentes, sendo por isso melhor estar separadas e conhecidas por nomes diferentes quando as procuramos num dicionrio. Crescer significa aumentar naturalmente no tamanho, com a adio de material atravs de assimilao ou acreo, Desenvolver significa expandir ou realizar o potencial de; fomentar gradualmente para um estdio mais pleno, maior, ou melhor. Quando alguma coisa cresce, fica maior. Quando algo se desenvolve, fica diferente. O ecossistema da Terra desenvolve-se, mas no cresce. O seu subsistema, a economia, deve eventualmente parar de crescer, mas continuar a desenvolver-se. O termo desenvolvimento sustentvel, portanto, faz sentido quando usado em economia, mas apenas se for compreendido como desenvolvimento sem crescimento - melhoramento qualitativo de uma base econmica fsica que mantida numa situao estvel atravs de uma explorao de matria-energia dentro das capacidades regenerativas e assimilativas do ecossistema. Actualmente o termo desenvolvimento sustentvel usado como sinnimo para o oximoro crescimento sustentvel. Deve ser salvo deste engano. (p.208). (My emphasis).

Nevertheless, it is the focus of local development that prevails in the examination of the regional context, influencing policy proposals for tackling the problems caused by regional differences. This approach has gained substantial impetus in Europe, thanks to its process of political unification and especially economical when the proposed development site to find space for application due to favorable conditions (in season) and the substantial resources available for project funding systems productive sites that previously operated in poor conditions.12 Boisier (2000, p.86) states that local development is a practice without theory, a circumstance which accounts for a considerable confusion in the literature on the subject. This is the same opinion as Guimaraes (1997, 281), for whom: "The term local economic development (LED) describes a practice without much theoretical underpinning: a practice that would benefit from, but may actually never find, comprehensive and applicable substantive theory. Boisier asserts that local development:
(...) es un concepto que reconoce por lo menos tres matrices de origen. Primeramente, el desarrollo local es la expresin de una lgica de regulacin horizontal que refleja la dialctica centro / periferia, una lgica dominante en la fase pre-industrial del capitalismo, pero que sigue vigente aunque sin ser ya dominante. En segundo lugar, el desarrollo local es considerado, sobre todo en Europa, como una respuesta a la crisis macroeconmica y al ajuste, incluido el ajuste poltico supra-nacional implcito en la conformacin de la UE; casi todos los autores europeos ubican el desarrollo local en esta perspectiva. En tercer lugar, el desarrollo local es estimulado en todo el mundo por la globalizacin y por la dialctica global/local que sta conlleva. En otras palabras, hay tres racionalidades que pueden operar detrs del concepto de desarrollo local y no pocos errores prcticos provienen de una mala combinacin de instrumentos y de tipo de racionalidad. Por ejemplo, se copian instituciones y medidas de desarrollo local ensayadas en Europa (desarrollo local como

Leader (program) of the European Union

respuesta) y se intenta aplicarlas en Amrica Latina (desarrollo local como lgica de regulacin horizontal). (2000, p.86) (My emphasis).

Still weaving theme considerations, Lastres (2004), seeking to take off from the extensive use of the terminology, notes that the emphasis in local development:
() no deve ser confundida com ideias superficiais sobre crescimento endgeno, as quais ganharam espao com a propalada maior acelerao do processo de globalizao. A abordagem sistmica parte da constatao de que o desenvolvimento local condicionado e subordinado tambm por sistemas exgenos que podem ter dimenso e controle nacional ou internacional. A partir desta constatao, nossa proposio conceitual que a capacidade de gerar inovaes coloca-se como fator chave na competitividade sustentada de empresas e naes, diversa da competitividade espria baseada em baixos salrios e explorao intensiva e predatria de recursos naturais. Tal capacidade mobilizada com a articulao dos diversos atores, produtores e usurios de bens, servios e tecnologias, sendo facilitada pela especializao em ambientes scio-poltico econmicos comuns. Assim, mostram-se completamente diferentes as situaes onde os arranjos produtivos fazem da regio uma simples hospedeira e onde se verifica a mobilizao e o enraizamento das capacitaes produtivas e inovativas. Neste sentido que argumentamos que o foco das novas polticas de desenvolvimento deva focalizar centralmente a promoo dos processos de gerao, aquisio e difuso de conhecimentos.

Despite its current popularity of endogenous development, a category is as confused as the previous one, with which is often confused. Many authors struggle to find a distinction between local and endogenous. Sterile and an effort designed to integrate the list of conceptual disagreements and controversies of regional science. What we can assume is that local development is a refinement of regional development as an endogenous development process is specifically located in a city, with its own new models of global economic growth or aggregate that make technological innovation a phenomenon internal to the function itself production, as in Lucas and Romer, leaving in the past the neoclassical conception of "residual factor" Solow, as shown by Barquero (1977). Thus, according Boisier (2000, p.93), el desarrollo endgeno se produce como resultado de un fuerte proceso de articulacin de actores locales y de variadas formas de capital intangible, en el marco preferente de un proyecto poltico colectivo de desarrollo del territorio en cuestin. It is also understood as a process of growth and structural change that occurs as a result of transfers of resources from traditional to modern activities; use of external economies and the introduction of innovations which generates an increase in the well-being of the population of a city. Baquero (1999) argues that despite not specifically depend on government management, the processes of endogenous development occurs through the productive use of development potential that is generated when the institutions and mechanisms of regulation of the territory operate efficiently. But it is important to note that these processes depend on development, and much of the social constructions, which are expressed in symbolic dimensions. Thus, in planning can only be taken into account intangible factors that govern a particular community, such as values, beliefs, rituals, tradition, knowledge atavistic, trust in the relationship / community agents, and experiences striking collective behavior that results in a web, commonly called culture. The endogenous development also follows a territorial vision (not functional) processes of growth and structural change that part of a hypothesis that the territory is


not a mere physical support of the objects, activities, and economic processes, but also that it is a local agent of transformation. Note the mark of Schumpterian theory of capitalist development in all the basic formulation of the endogenous development approach. Note also that this theory does not apply to developing countries, especially their lagging regions, as in the northeastern Brazilian state of Bahia.13 Souza (1999, p.189) argues that a teoria schumpteriana mais adequada para pases com elevado estoque potencial de empresrios, com disponibilidade de capitais emprestveis e com grandes possibilidades de criar novas tecnologias prprias. E conclui dizendo que essas condies nem sempre se verificam nos pases subdesenvolvidos. E o problema da teoria schumpteriana, como de qualquer outra teoria sobre o desenvolvimento econmico a dificuldade da sua generalizao. In this Schumpeterian plan can incorporate the focus of endogenous models of industrial districts "marshalianos" the milieu inovateurs, technology parks, clusters, local productive arrangements (LPAs) and the like. The "discovery" of marshallian industrial districts in Third Italy14 by Arnaldo Bagnasco (1977), Carlos Triglia (1986) and Sebastiano Brusco (1986) and the seminal work of Michael Piore and Charles Sobel (1984) with the proposal of a new technological paradigm, the flexible specialization, which would be a special industrial district complemented by numerous other important contributions of Becattini (1989) Scott and Storper (1986) and Walker (1989), are also meant to lay the foundations for a new theory of development which would fit the role of protagonist micro and small enterprises. It is worth emphasizing, then, that without a prior local stock of skilled human capital becomes impossible the occurrence of endogenous development that depends on when it comes to this human capital, a typical process of embeddedness or rooting in the community. The absence of such complicity is a restriction that makes it impossible the occurrence of endogenous development processes in many Brazilian states, notably the North and Northeast and in particular the Bahia.15 It was Friedman (1964) brilliantly said: only cultural regions have the capacity to develop from within, because only they have a collective sense of who they are, and because their presence in the world makes a difference.

Some Brazilian initiatives


The local study evaluates the agglomerative advantages and proximity to sources of knowledge and learning, rooted in that singular territory, creating in their investigations, ad hoc lists of assets, capabilities, standards, routines and habits, all duly region-specific. Many of these studies neglect the command most of these processes is outside the space under analysis. Moreover, according to this literature, in this environment bearer of "new development", stress civic engagement and solidarity-asssociative pass off a state that is presented only as a "voyeur" of the will to produce comparative advantages and synergies located and sometimes, in some philanthropic network for those excluded from the process of "natural selection". (Brando, 2002). (My emphasis)

The so-called Third Italy comprises the region polarized by Bologna and Florence. The concept of industrial district was coined by Alfred Marshall in 1900. 15 It's understandable effort of many organizations to promote the "push the envelope" to "discover" productive arrangements (LPAs) and similar in primitive economies. The experience is worth at least as a learning process


The most important thing in planning is that its theoretical basis to explain and reflect the reality studied. The construction of this base forged from experiences in other countries, with different realities, demands that we promote comparative studies and exchange of experiences aimed at the creation of adjustment mechanisms and strategies in keeping with the subject of the application of the studies. Despite these considerations have been intensified in Brazil local development programs under the leadership of the National Bank of Economic and Social Development (BNDES), the Brazilian Service to Support Micro and Small Enterprises (SEBRAE) and with the active participation of other agencies to promote federal and regional state. The programs were running agglomerative conceptually influenced by the experience of Italian industrial districts and Silicon Valley, California, within the paradigm of flexible specialization. Despite the existence of widely diverse theoretical production in the country, especially in academia, there is the contribution of the Institute of Economics, Federal University of Rio de Janeiro (IE / UFRJ), which has for many years, with the support of organizations developing international research projects in the area of innovation. The IE / UFRJ operates the Research Network for Local Productive and Innovative Systems (RedeSist) a network of interdisciplinary research that includes the participation of several universities and research organizations in Brazil and abroad. The approach to the problem in Brazil began with the cluster concept. According RedeSist defines the term cluster is associated with the Anglo-American tradition and, generally, refers to clusters, developing similar activities. Throughout its development, the concept was nuances of interpretation. In the framework of neoclassical theory, the new economic geography uses the term as a mere agglomeration of firms (Krugman's approach). This term is still widely used in the country, notably by the appeal is on the native expressions in English. Later come the local productive arrangements, known by its acronym, a Brazilian version of APL. In 2003 RedeSist so defined:
(...) Are territorial agglomerations of economic agents, political and social with a focus on a specific set of economic activities - which have even incipient bonds. Usually involve the participation and interaction of companies - which can range from producing final goods and services to suppliers of inputs and equipment, consulting and service providers, distributors, customers, among others - and its various forms of representation and association. They also include several other public and private partnerships to: training of human resources, and technical schools and universities, research, development and engineering, policy, promotion and financing. (My emphasis).

The basic argument of the conceptual and analytical approach adopted by RedeSist was that "where there is production of any good or service there will always be around the same arrangement, involving actors and activities related to the acquisition of raw materials, machinery and other inputs" (REDESIST, 2005). This interpretation, which seems very extensive, provided justification for the more exotic projects to promote clusters in less developed regions of the country. In the Brazilian tradition of solving problems by decree (law), there are formal role in many projects of this nature and, under this scope, are in practice often factoids or embryonic elements. As an example of what has occurred with other terms in the past, are expressions of totemic words, such as polo, local development, apps, endogenous development and generate employment and income that infect the country and are placed on the stump and political disseminated by the media. And every project manager, especially in the public sector, clinging to her clusters, apls, etc. Without


caring much about the theoretical foundations of the matter. Cultural, sociological, technological, etc.. are ignored and perspective orwerliana rewrites the history adjusting to the reality of the need for media and political actors, without any regard for the weak, inadequate and even the absence of the main actors. In Bahia, for example, were "identified" 14 APLS by the State Government16. In practice they are all factoids. Note the following excerpt from the report prepared REDESIST own:
The little interaction and few business links between companies and other institutions such as universities and research centers, difficult actions that encourage greater local cooperation and competitiveness. There is, thus, there is still room for greater coordination between the actors of the clusters, especially the joint inter-firm, as there is little initiative towards cooperation on the part of entrepreneurs themselves. Firms in clusters, in general, have not yet realized the opportunities to act jointly and nearby universities, research centers and other local institutions in a manner consistent with the typology presented by Tommaso and Dubbin (2000), and before other characteristics of the firms present in the supported clusters, according to the typology proposed by Mitelka and Farinelli (2005), one can broadly classify the clusters of fish, caprinovinocultura, sisal, ornamental and derived from sugar cane as informal settlements that bring together micro and small businesses with relatively low technological level in relation to the technological frontier of the industry or the joint interenterprise that generates the dynamics of clusters and, in cases where the prevailing family production, the owners have limited managerial capacity. Workers often have low skills and little or no continuing education is offered to promote a sustained improvement of their skills. Also according to the authors, these clusters the coordination and networking between companies tend to be weak and characterized by a limited perspective of growth, intense competition, low morale and information sharing. Also according to the typology proposed by the authors, the clusters of IT suppliers of the automotive chain, clothing, plastic processing, fruit and tourism may fall as organized clusters, where there is some interaction between local actors. It can be observed, also, quite shy, some local coordination, manpower with some qualification, the presence of managerial capacity, but there is a continuous innovative capacity. (REDESIST, 2009, p.19)

It is emphasized that this argument does not intend to deny the efforts made to promote local development that have been around since the 60s of last century, notably by former SUDENE mobilized, which borrowed in India and the Netherlands intervention models that fit the reality Northeast of small and medium enterprises in the states with the formation of industrial clusters support (Nais) embryos that would be SEBRAE. In practice what happens is a change of label, with the eye needs to appear in the media with a "novelty."

The dimensions of a development unviable


In a project linked to RedeSist and financed by World Bank


When dealing with issues related to development, notably the regional level, one cannot fail to consider the observation of Furtado (1979), that this is a process which goes through many stages which must be observed at least three dimensions: a. the size of improving the effectiveness of the social system of production; b. the extent of satisfaction of basic needs of the population; c. the extent of achievement of objectives which aspire to the dominant groups of society, and competing with the use of scarce resources Also Baquero (1999) and Male (2001), identifies three important dimensions of development: the first of an economic nature, which allows local entrepreneurs and economic agents to efficiently use the factors of production and achieve productivity levels that assures them be competitive in the markets and the second, and on a sociocultural, in which the economic and social actors are integrated with local institutions to form a dense system of relations that embody the values of society in the process of endogenous local development, and the third and last of a political that exploits through local initiatives, creating a local environment that stimulates the production and promote development. There is, however, that the dimensions provided for the occurrence of economic development, despite the increased efficiency of production in the regions, are not sufficient conditions for that best meet the basic needs of the local population. Even it is observed that the degradation of living conditions of some populations is due to the introduction of more advanced techniques (Furtado, 1979). In this respect, Nurkse (1965) argues that in poor countries the market forces perpetuate poverty, since out of it, investments are needed to create a system enabling to increase the productivity of the poor and their integration into the market. The difficulty of this situation stems not only from the savings and low cultural level of the poor, but also the lack of incentives and benefits for the construction of structures and clustering activities that modernize some capital-intensive, giving them, however, competitive scales of production. Similarly, Hirschman (1958) points out that most poor countries have the resources to reverse only in a few modern designs and thus can achieve balanced growth only in the long term, through a sequential process of building the first one and then other industry, correcting the imbalance in each step considered the most harmful to get closer to a more balanced structure. So, with all this, how would Arrighi (1997) there is a developmental illusion that completely ignores the consolidated system of unequal exchanges between countries, states or regions and the industrialized countries, states or regions of poor people living on its periphery. Or, as predicted Walerstein (1998), that the existence of semiperiphery and periphery is essential for the stability of the world capitalist economy. As history shows the pattern of contemporary rich and poor countries in the world established itself definitely in the nineteenth century. Confirmation of this pattern and the prospect of irreversibility are demonstrated by Arrighi (1997), citing that Harrod speaks of the division of personal wealth in two types that are separated by insurmountable obstacles. The first refers to democratic wealth that is "an area about the resources that, in principle, is available to all in direct relation to the intensity and efficiency of their efforts" (Arrighi, 1997, p. 216). The second type consists of oligarchic wealth that has nothing to do with the intensity and efficiency of who owns and is never available to everyone, no matter how efficient they are intense and your efforts. This is demonstrated by the concept of unequal exchange which explains that


we cannot have dominion over all products and services that incorporate the time and effort of more than one person of average efficiency. "If someone has it, that means someone else is working for less than he or she should check if all the efforts of equal intensity and efficiency were rewarded equally" (Arrighi, 1997, p. 216). Thus the use or enjoyment of oligarchical wealth involves the removal of others. What each of us can do, it is not possible for everyone. According to Arrighi transforms this reasoning for the analysis of global (and regional) in a capitalist economy we find a problem of "adding" similar and more serious than that faced by individuals as they seek to obtain personal wealth. "The opportunities for economic advancement, as presented serially to a state at a time, there are comparable opportunities for economic advancement for all states" (Arrighi 1997, p.217). As stated by Wallerstein (1988), "Development in this sense is an illusion" In other words, the wealth of the states of organic nucleus (the so-called First World globally, the Southeast region in the Brazilian case) is analogous to Harrodss oligarchic wealth. This wealth cannot be generalized because it rests on processes of exploitation and exclusion that assume continuous playback of poverty of the majority in a regional context. It shows what Santos (1979) when dealing with upper and lower circuits that constitute the urban spaces in the underdeveloped regions, absolute or relative poverty of the semi-states (Brazil Southeast over the first world) and peripheral (Northeast Brazil about Brazil Southeast) induces continually elites to participate in the international division of labour for rewards that make marginal benefits for the bulk of the members states of the core organic Arrighi (1997) states that the fight against exclusion leads to the search for a comparatively safe niche in the international division of labour that leads to a semiperipheral states higher in some activities where I can get some kind of competitive advantage which leads to a relationship unequal exchange (terms of trade deterioration) in which the state provides goods incorporating semi peripheral manpower underpaid for the states of organic nucleus in exchange for goods that incorporate well-paid workforce and a more complete exclusion of the states peripheral activities of the state in which semi peripheral seeks greater specialization. In the same vein, Corsi (2002) stated that the fate of the peripheral countries would be determined largely by the dynamics of structures in the world economy, making the determinations in the background social, political, economic and cultural, as well as the struggles social internal to each country. According to him during the last 25 years due to failure of development programs, there was a greater distance from the underdeveloped regions rich. And for this reason, the progress achieved by some peripheral countries during the 50 to 70, only made back in the following decades. So what was touted as a possibility at this time to overcome delay and underdeveloped countries, the trend was reversed in combined and uneven development of capitalism. Unequal exchanges that have always existed, and it seems, will continue to exist between the organic core and the periphery, are characterized as a mechanism of polarization-organic core-periphery, in which the hand-labor and capital are important elements of current transfers and crucial in the constitution and reproduction of this global capitalist economic structure. Thus, solving the problem between the organic core and the periphery with the main focus industrialization is a "developmental source of illusions" (ARRIGHI, 1997). So the question of the increase of social inequalities on a global scale is quite complex and cannot simplistically be reduced to an increase in inequality between rich and poor regions of the world. The increase in poverty is not only observed in the


peripheral regions, but also gained importance in various regions within the countries that make up the organic nucleus of the capitalist system (ALTVATER, 1995; HOBSBAWM, 1995). Many authors, among them Castoriadis (1982), considered, until recently, based on the experience of so-called "Golden Age" of capitalism (1945-1973), this problem would be overcome in developed countries, showing that the system capitalism could overcome poverty. They were wrong. The contradictions and inequalities, which are markedly present in an increasingly integrated world, also appear within each country and each city in the world. Right in the center of the system. That is, the contrast between rich and poor, present in almost every major city in the world is similar to what is known among the poor and rich regions of the planet. It is important to state, from that fact that both the central and the peripheral countries need to rely on policies that combine an accelerated formation of human capital associated with efforts that seek to promote technological development-oriented foreign trade, aimed at accelerating gains in competitiveness. There is thus no country reached the level of economic and social development, without the support of science and technology (S & T), since there is not the first (development) without the contribution of the second (S & T). Therefore, the main objective of promoting a policy is to promote efficient productive systems, also based on industries such as services, making them able to follow the dynamics of international technical progress, promoting the general welfare of society as a whole. Economic growth, training and development of enclaves in Bahia According to Fonseca (1992, p.77) in his reading of the role of human capital in the philosophy of Alfred Marshall, the analysis of the role of human capital in the economic process is based on the idea that to increase output per capita and overcome the economic backwardness, it is necessary to invest in the human factor of production. There is a close relationship between nutrition, health and education on the one hand, and hard work, initiative and innovation on the other. Poverty and incompetence are closely interlinked at the microeconomic level. Surely here is the result of the difficulty is to promote economic development in regions like the Brazilian Northeast and specifically in the case of Bahia. The introduction to this work we present statistics related to poverty in the state, must now add other elements related to popular education. According to the IBGE / PNAD Bahia in 2009, 1.8 million of Bahia with 15 years or more are illiterates. Cannot read and write, which corresponds to 16.7% of the state population in this age group. The economically active population, 55.4% do not have complete elementary school, do not pass the fourth grade. Are functionally illiterate. In summary 7 of every 10 people in Bahia are unable to develop any kind of skilled labour. The framework described here, which, amazingly, it was much worse in the late nineteenth century, comes from the absence of a policy of human capital formation from the basic education that is of poorer quality in the state, the university confined to dismantle a mediocre production of knowledge and little interaction with society, coupled with the lack of investment in physical capital or, more precisely, in infrastructure, since the region needs to create conditions favourable for the formation of clusters of commercial activities, sized cities medium, and externalities for private capital (reduction of transaction costs, production and transport, access to markets, etc.)..


Deficiency of human capital can be expressed by the absence of local entrepreneurs with industrial vocation. To overcome this lack of structural entrepreneur, according to the Schumpeterian patterns, came from the State the burden of importing them from other regions resulting in the formation of several small enclaves and deployment of many companies of its kind footloose without any local or regional commitment. Aggravating the insert to the limitations of the market caused by the poverty of the majority population in Bahia. With all these limitations Bahia from the 1970s, bet all your chips in fostering industrialization. Used as weapons policies of tax incentives and the provision of externalities generated from the construction of industrial districts in the interior and the deployment of nodes, mediated by complex producers in the area of metallurgy, petrochemical and nonferrous metals. The option by cluster development, however, proved to be inadequate, since the pole condition stems from the ability of industry to innovate and driving a legal and administrative structure endogenous, responsible for the action-driving innovative, nonexistent in the models Bahia that ended up being managed by groups external business without major commitments to the region. He promotion of industrialization, based on the theory of development poles la Perroux (1961), failed to create the conditions necessary for its implementation. This is because the principle of the constitution of a polarizing region assumes a level of demand generation induced strong enough to establish a productive complementarity via intra-regional input-output, the backward linkage effects, and forward linkage effects studied by Hirschman. The regional environment consisting perrouxian required the production systems were generating externalities through interdependencies and complementarities productive sector of the regional urban network, so they could create a feedback mechanism between their export base, the growth of regional income and residential activities. In this sense, the biggest constraint to production systems peripherals perrouxianas capture the externalities at the national level, is the strong regional segmentation of the same, expressed by the predominance of low-income areas and significantly uneven distribution of regional income. Thus, in practice, the experience of industrialization Bahia presented difficulties in applying the principles of polarization for the promotion of regional development, since the "Location Theory" and "Theory of the Poles" provide explanations that do not bind each other and are complicated matching Therefore Bahia grew economically, through the formation of enclaves, specializing in the production of intermediate goods, import businesses, entrepreneurs and skilled manpower which of course did not contribute to its development in the stricto sensu. This is because, despite the apparent material progress and technological advances mirrored in some segments, all of the benefits of such initiatives were never available to the millions of excluded people who are, overwhelmingly, the state population.

CONCLUSION From what has been said that we shall end the only way to promote economic development in Bahia and other backward regions of Northeast Brazil focuses on the mobilization of efforts consistent and effective training of human capital quality and the creation of mechanisms that avoid spills and retain capital in this country.


Althought, contrary to our eager immediacy, we must learn from Aristotle, Darwin and Marshall also in the economy Natura non facit saltum. Or as Eduardo Giannetti da Fonseca (1992, p. 85) there is no magic formula or preposterous plan which seeks to raise the overnight efforts of productive efficiency. The process of formation of human capital and organic growth described by Marshall is by nature slow. We also conclude that the theory of endogenous local development and the way it was designed in Europe, does not apply in the semi-periphery. This is because there is no market, human resources and institutional qualified for the spontaneous emergence of the processes of development of cities, similar to the Schumpeterian growth model that considers the technical progress (innovation) as a key element. As the economy is affected by changes in the world that surrounds it, and explaining the causes of development should be sought, too, outside of studies of economic theory. One of the fundamental pillars of the local development policy must reside in the substantial improvement of qualification of human resources through the provision of adequate training to the needs of different local production systems. To this may be associated with initiatives to promote the diffusion of innovation in the productive fabric of the locality or territory. You can also forget certain prerequisites orthodox approach advocated in the endogenous development, certain rules as technological innovation and the spectre of globalization, which intend to transform each site heralds a function of the world - a fantasy that is somewhat inconsequential - and adjust our techniques and procedures to our reality. We can and must do as aptly SEBRAE produce catalytic effects of modernity (without violating the local culture) in artisanal communities, as with the lace of the Northeast and other craft activities. When working without patronizing the activities historically and culturally rooted within communities, we do not run the risk of high mortality rates plaguing small and medium sized companies throughout Brazil promoted without further sociological evaluation criteria. Despite the creation of an innovative environment constitute a long-term measure characterized by the gradual engagement of people of good causes in the qualification of innovation and technological modernization, through programs of qualification is personnel, and technical activities to be productive, and especially the induction cooperation between the actors involved, both between competing firms or between users and producers, there is a high degree of innovation that is observed early second sociological and anthropological standards will be enhanced and certainly produce encouraging results. It also requires a high degree of political courage and intellectual independence, not to mention creativity, coping with neoclassical and neo-liberal establishment that dominates the field of regional economy and dare heterodox measures. This is the case, for example, measures of income transfer recently adopted by the Brazilian government. Despite attacked by bourgeois elite as paternalistic or electoral, programs like the "family allowance" has produced multiplier effects in the market and led its growth. I daresay that the purchasing power to create a populace that ate almost nothing to be steeped in poverty, the government is driving the development on the demand side. Many companies - especially small and medium are motivated by this new emerging market, and with them new jobs. Witnessed the beginning of acceleration of Harrod and Domar, almost buried by the new "scientific". I believe that by injecting resources on the poorest and conditioning these transfers counterparts as school attendance, by both young and adults, and adherence to prophylactic health programs, we will be inaugurating a new way of promoting development, considerably more effective and should substitute its tax incentive programs and waiver of taxes, which are


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