The changing of the pattern of financing investment in Brazil

ABSTRACT

The pattern of financing investment is changing in Brazil. During the 70’s it was based on the classical pattern that prevails in the early stages of development, that is, on state and external financing. But, in the second part of the 70’s this pattern breaks down as the public sector loses its savings capacity. ln the second part of the 80’s, the public sector is supposed to recover partially its saving capacity, while the private sector assumes an increasing role in investment.

KEYWORDS:
International lending; investment; capital flows; role of the State