Commanding heights: for a political sociology of Brazilian federal banks

This article reviews federal government banks in Brazil since transition from authoritarian rule and price stability in 1994, compares bank-centred and market-centred financial systems and their impact on the distribution of income in advanced and developing nations, emphasizes different experiences with financial liberalisation and bank reform, and suggests that popular credit provides new opportunities for political development and social inclusion. These findings confirm the institutional foundations of comparative advantage emphasized by the varieties of capitalism approach and suggest that social scientists need reassess theories about government banking, politics, markets, citizenship, and democratization.