Celso Furtado
Encyclopedia
Celso Monteiro Furtado (Pombal, Paraíba
, Northeast of Brazil, July 26, 1920 – Rio de Janeiro
, November 20, 2004) was an important Brazil
ian economist
and one of the most distinguished intellectuals of his country during the 20th century. His work focuses on development
and underdevelopment
and on the persistence of poverty in peripheral countries throughout the world. He is viewed, along with Raúl Prebisch
, as one of the main formulators of economic structuralism
, an economics school that is largely identified with CEPAL, which achieved prominence in Latin America and other developing regions during the 1960s and 1970s and sought to stimulate economic development through governmental intervention, largely inspired on the views of John Maynard Keynes
. As a politician, Furtado was appointed Minister of Planning (Goulart government
) and Minister of Culture (Sarney government
).
region of the state of Paraíba
, Celso Furtado moved to Rio de Janeiro
in 1939, to study Law, and graduated from the Federal University of Rio de Janeiro (UFRJ) in 1944. That same year, he was conscripted
to the Brazilian Expeditionary Force
to fight in Italy
, during World War II
, alongside the Allies
. Seeing countries destroyed in post-war Europe had a profound impact on him, leading to the decision that he would study Economics
: he enrolled in a doctorate program at the University of Paris
(Sorbonne
), in 1946, and presented a thesis on the economy of Brazil during the colonial period
.
In 1949, he moved to Santiago, Chile
, where he joined the team of the newly-created United Nations Economic Commission for Latin America and the Caribbean
(best known by its Latin American acronym, CEPAL), which was then headed by Argentine economist Raúl Prebisch
. While working at CEPAL, Furtado and Prebisch were decisive for the formulation of socioeconomic policies for the development of Latin America which emphasized on industrialization.
Upon his return to Brazil in 1959, he published his most famous book – The Economic Growth of Brazil: A Survey from Colonial to Modern Times (in Portuguese: Formação Econômica do Brasil) – and was appointed the director of the Brazilian Development Bank
(BNDE) in charge of issues concerning states of the northeastern region, which are poor and face chronic droughts and desertification. During this period, he developed a plan which resulted in the creation of the Superintendency for the Development of the Northeast
(Sudene
), a governmental agency that worked to stimulate economic growth in that region, and was appointed by Brazilian president Juscelino Kubitschek (1956–1961) the agency's first director. During the government of president João Goulart
(1961–1964), Furtado became Minister of Planning and was responsible for Brazil's Triennial Plan of development.
Furtado was also one of the founders of the United Nations Conference on Trade and Development
(UNCTAD), an intergovernmental body created in 1964, whose work has since centered around issues related to development and the asymmetries of international trade.
With the Brazilian military coup d'état, in 1964, he was forced into exile and worked as professor at Yale University
, in the United States, and later at the University of Paris
(Sorbonne
), in France. After the Law of Amnesty, in 1979, he returned to Brazil and was appointed Ambassador of Brazil at the EEC, in Brussels (1985–1986) and Minister of Culture in the government of president José Sarney
(1985–1990).
In 2004, the year of his death, Celso Furtado was nominated to the Nobel Prize
of Economics (Bank of Sweden Prize in Economic Sciences).
(with Sue Branford)
In O Mito do Desenvolvimento Econômico (The myth of economic development, in Portuguese), published in 1974, Furtado almost prophetically refers to the "spread of the world economy" ("mundialização da economia") when describing the ongoing economic process known today as globalization
and raises questions about issues we are living today:
1) The myth of economic development versus the need natural resources for economic processes: it's a myth to think that economic development, and its benefits, will some day reach everyone in the world if the model of economic development does not change. For instance, there are not sufficient natural resources
available for every person in the world if one considers the economic model on which economy was based in the 1970s and is also based currently, i.e. the model where consumerism and individualism are the base for corporate actions. For instance, if every person had money to buy a car, our cities would be completely frozen. The critics on the myths of economic development were based on a report for the Club of Rome
, which is summarized in Abstract of The limits to Growth: a report to The Club of Rome;
2) About poverty: in countries that do not have "central" economies (countries that are not the base for giant corporations), at most 10% of population could reach the level of wealth achieved by people in the richest countries. Peripheral economies, which would not create an independent and more complete economy, would continue to be poor countries, with increasing differences between poor and rich people inside this societies;
3) About the World economic superstructure: The world superstructure of capitalist economy (mainly IMF
and GATT
, which originated WTO
(World Trade Organization) would, on the one hand, increase control over the world economy, also increasing freedom for capital's flows and for big corporations' actions, and, on the other hand, would decrease the number of possible options available for governments, mainly for poor country's governments. This is the kind of development that has been taking place for the last 30 years.
Paraíba
Paraíba Paraíba Paraíba (Tupi: pa'ra a'íba: "bad to navigation"; Brazilian Portuguese pronunciation: is a state of Brazil. It is located in the Brazilian Northeast, and is bordered by Rio Grande do Norte to the north, Ceará to the west, Pernambuco to the south and the Atlantic Ocean to the east...
, Northeast of Brazil, July 26, 1920 – Rio de Janeiro
Rio de Janeiro
Rio de Janeiro , commonly referred to simply as Rio, is the capital city of the State of Rio de Janeiro, the second largest city of Brazil, and the third largest metropolitan area and agglomeration in South America, boasting approximately 6.3 million people within the city proper, making it the 6th...
, November 20, 2004) was an important Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
ian economist
Economist
An economist is a professional in the social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economics and write about economic policy...
and one of the most distinguished intellectuals of his country during the 20th century. His work focuses on development
Economic development
Economic development generally refers to the sustained, concerted actions of policymakers and communities that promote the standard of living and economic health of a specific area...
and underdevelopment
Underdevelopment
Underdevelopment is a term often used to refer to economic underdevelopment, symptoms of which include lack of access to job opportunities, health care, drinkable water, food, education and housing...
and on the persistence of poverty in peripheral countries throughout the world. He is viewed, along with Raúl Prebisch
Raúl Prebisch
Raúl Prebisch was an Argentine economist known for his contribution to structuralist economics, in particular the Singer–Prebisch thesis that formed the basis of economic dependency theory. He is sometimes considered to be a neo-Marxist though this label is misleading...
, as one of the main formulators of economic structuralism
Structuralist economics
Structuralist economics originated with the work of the Economic Commission for Latin America and is primarily associated with its director Raul Prebisch and Brazilian economist Celso Furtado. Key to structuralist analysis is the idea that the structural features of developing economies need to be...
, an economics school that is largely identified with CEPAL, which achieved prominence in Latin America and other developing regions during the 1960s and 1970s and sought to stimulate economic development through governmental intervention, largely inspired on the views of John Maynard Keynes
John Maynard Keynes
John Maynard Keynes, Baron Keynes of Tilton, CB FBA , was a British economist whose ideas have profoundly affected the theory and practice of modern macroeconomics, as well as the economic policies of governments...
. As a politician, Furtado was appointed Minister of Planning (Goulart government
João Goulart
João Belchior Marques Goulart was a Brazilian politician and the 24th President of Brazil until a military coup d'état deposed him on April 1, 1964. He is considered to have been the last left-wing President of the country until Luiz Inácio Lula da Silva took office in 2003.-Name:João Goulart is...
) and Minister of Culture (Sarney government
José Sarney
José Sarney de Araújo Costa is a Brazilian lawyer, writer and politician. He served as president of Brazil from 15 March 1985 to 15 March 1990....
).
Biography
Born in Pombal, a city set in the semi-aridSemi-arid
A semi-arid climate or steppe climate describes climatic regions that receive precipitation below potential evapotranspiration, but not extremely...
region of the state of Paraíba
Paraíba
Paraíba Paraíba Paraíba (Tupi: pa'ra a'íba: "bad to navigation"; Brazilian Portuguese pronunciation: is a state of Brazil. It is located in the Brazilian Northeast, and is bordered by Rio Grande do Norte to the north, Ceará to the west, Pernambuco to the south and the Atlantic Ocean to the east...
, Celso Furtado moved to Rio de Janeiro
Rio de Janeiro
Rio de Janeiro , commonly referred to simply as Rio, is the capital city of the State of Rio de Janeiro, the second largest city of Brazil, and the third largest metropolitan area and agglomeration in South America, boasting approximately 6.3 million people within the city proper, making it the 6th...
in 1939, to study Law, and graduated from the Federal University of Rio de Janeiro (UFRJ) in 1944. That same year, he was conscripted
Conscription
Conscription is the compulsory enlistment of people in some sort of national service, most often military service. Conscription dates back to antiquity and continues in some countries to the present day under various names...
to the Brazilian Expeditionary Force
Brazilian Expeditionary Force
The Brazilian Expeditionary Force or BEF was a force about 25,700 men and women arranged by the Army and Air Force to fight alongside the Allied forces in the Mediterranean Theatre of World War II...
to fight in Italy
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
, during World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
, alongside the Allies
Allies of World War II
The Allies of World War II were the countries that opposed the Axis powers during the Second World War . Former Axis states contributing to the Allied victory are not considered Allied states...
. Seeing countries destroyed in post-war Europe had a profound impact on him, leading to the decision that he would study Economics
Economics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
: he enrolled in a doctorate program at the University of Paris
University of Paris
The University of Paris was a university located in Paris, France and one of the earliest to be established in Europe. It was founded in the mid 12th century, and officially recognized as a university probably between 1160 and 1250...
(Sorbonne
Sorbonne
The Sorbonne is an edifice of the Latin Quarter, in Paris, France, which has been the historical house of the former University of Paris...
), in 1946, and presented a thesis on the economy of Brazil during the colonial period
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
.
In 1949, he moved to Santiago, Chile
Santiago, Chile
Santiago , also known as Santiago de Chile, is the capital and largest city of Chile, and the center of its largest conurbation . It is located in the country's central valley, at an elevation of above mean sea level...
, where he joined the team of the newly-created United Nations Economic Commission for Latin America and the Caribbean
United Nations Economic Commission for Latin America and the Caribbean
The United Nations Economic Commission for Latin America and the Caribbean was established in 1948 to encourage economic cooperation among its member states. In 1984, a resolution was passed to include the countries of the Caribbean in the name...
(best known by its Latin American acronym, CEPAL), which was then headed by Argentine economist Raúl Prebisch
Raúl Prebisch
Raúl Prebisch was an Argentine economist known for his contribution to structuralist economics, in particular the Singer–Prebisch thesis that formed the basis of economic dependency theory. He is sometimes considered to be a neo-Marxist though this label is misleading...
. While working at CEPAL, Furtado and Prebisch were decisive for the formulation of socioeconomic policies for the development of Latin America which emphasized on industrialization.
Upon his return to Brazil in 1959, he published his most famous book – The Economic Growth of Brazil: A Survey from Colonial to Modern Times (in Portuguese: Formação Econômica do Brasil) – and was appointed the director of the Brazilian Development Bank
BNDES
The Brazilian Development Bank is a federal public company associated with the Ministry of Development, Industry and Foreign Trade. Its goal is to provide long-term financing for endeavors that contribute to the country's development...
(BNDE) in charge of issues concerning states of the northeastern region, which are poor and face chronic droughts and desertification. During this period, he developed a plan which resulted in the creation of the Superintendency for the Development of the Northeast
Sudene
The Superintendency for the Development of the Northeast , or Sudene for short, is a Brazilian governmental agency created in 1959, during the government of President Juscelino Kubitschek , to stimulate economic growth in the northeastern region of Brazil, one of the poorest of the country, that...
(Sudene
Sudene
The Superintendency for the Development of the Northeast , or Sudene for short, is a Brazilian governmental agency created in 1959, during the government of President Juscelino Kubitschek , to stimulate economic growth in the northeastern region of Brazil, one of the poorest of the country, that...
), a governmental agency that worked to stimulate economic growth in that region, and was appointed by Brazilian president Juscelino Kubitschek (1956–1961) the agency's first director. During the government of president João Goulart
João Goulart
João Belchior Marques Goulart was a Brazilian politician and the 24th President of Brazil until a military coup d'état deposed him on April 1, 1964. He is considered to have been the last left-wing President of the country until Luiz Inácio Lula da Silva took office in 2003.-Name:João Goulart is...
(1961–1964), Furtado became Minister of Planning and was responsible for Brazil's Triennial Plan of development.
Furtado was also one of the founders of the United Nations Conference on Trade and Development
United Nations Conference on Trade and Development
The United Nations Conference on Trade and Development was established in 1964 as a permanent intergovernmental body. It is the principal organ of the United Nations General Assembly dealing with trade, investment, and development issues....
(UNCTAD), an intergovernmental body created in 1964, whose work has since centered around issues related to development and the asymmetries of international trade.
With the Brazilian military coup d'état, in 1964, he was forced into exile and worked as professor at Yale University
Yale University
Yale University is a private, Ivy League university located in New Haven, Connecticut, United States. Founded in 1701 in the Colony of Connecticut, the university is the third-oldest institution of higher education in the United States...
, in the United States, and later at the University of Paris
University of Paris
The University of Paris was a university located in Paris, France and one of the earliest to be established in Europe. It was founded in the mid 12th century, and officially recognized as a university probably between 1160 and 1250...
(Sorbonne
Sorbonne
The Sorbonne is an edifice of the Latin Quarter, in Paris, France, which has been the historical house of the former University of Paris...
), in France. After the Law of Amnesty, in 1979, he returned to Brazil and was appointed Ambassador of Brazil at the EEC, in Brussels (1985–1986) and Minister of Culture in the government of president José Sarney
José Sarney
José Sarney de Araújo Costa is a Brazilian lawyer, writer and politician. He served as president of Brazil from 15 March 1985 to 15 March 1990....
(1985–1990).
In 2004, the year of his death, Celso Furtado was nominated to the Nobel Prize
Nobel Prize
The Nobel Prizes are annual international awards bestowed by Scandinavian committees in recognition of cultural and scientific advances. The will of the Swedish chemist Alfred Nobel, the inventor of dynamite, established the prizes in 1895...
of Economics (Bank of Sweden Prize in Economic Sciences).
Published books
Furtado published more than 30 books during his lifetime.- Contos da vida expedicionária – de Nápoles a Paris. RJ, Zelio Valverde, 1946
- A economia brasileira. RJ, A Noite, 1954
- Uma economia dependente. RJ, Ministério da Educação e Cultura, 1956
- Perspectivas da economia brasileira. RJ, Instituto Superior de Estudos Brasileiros, 1958
- Formação econômica do Brasil. RJ, Fundo de Cultura, 1959
- Other editions:
- Formação econômica do Brasil. 14ª ed. São Paulo: Companhia Editora Nacional, 1976.
- Formação econômica do Brasil. 24ª ed. São Paulo: Companhia Editora Nacional, 1991.
- Formação econômica do Brasil. 34ª ed. São Paulo: Companhia das Letras, 2007.
- Other editions:
- A Operação Nordeste. RJ, Instituto Superior de Estudos Brasileiros, 1959
- Uma política de desenvolvimento econômico para o Nordeste. RJ, Imprensa Nacional, 1959
- Desenvolvimento e subdesenvolvimento. RJ, Fundo de Cultura, 1961
- Subdesenvolvimento e Estado democrático. Recife, Condepe, 1962
- A pré-revolução brasileira. RJ, Fundo de Cultura, 1962
- Dialética do desenvolvimento. RJ, Fundo de Cultura, 1964
- Subdesenvolvimento e estagnação na América Latina. RJ, Civilização Brasileira, 1966.
- Teoria e política do desenvolvimento econômico. SP, Editora Nacional, 1967
- Um projeto para o Brasil. RJ, Saga, 1968
- Formação econômica da América Latina. RJ, Lia Editora, 1969
- Análise do "modelo" brasileiro. RJ, Civilização Brasileira, 1972
- A hegemonia dos Estados Unidos e o subdesenvolvimento da América Latina. RJ, Civilização Brasileira, 1973
- O mito do desenvolvimento econômico. RJ, Paz e Terra, 1974
- A economia latino-americana. SP, Editora Nacional, 1976
- Other editions:
- A economia latino-americana. 4ª ed. São Paulo: Companhia das Letras, 2007
- Other editions:
- Criatividade e dependência na civilização industrial. RJ, Paz e Terra, 1978
- Other editions:
- Criatividade e dependência. São Paulo: Círculo do Livro, 1980
- Criatividade e dependência. 2ª ed. São Paulo: Companhia das Letras, 2008
- Other editions:
- O Brasil pós-"milagre". RJ, Paz e Terra, 1981
- A nova dependência, dívida externa e monetarismo. RJ, Paz e Terra, 1982
- Não à recessão e ao desemprego. RJ, Paz e Terra, 1983
- Cultura e desenvolvimento em época de crise. RJ, Paz e Terra, 1984
- A fantasia organizada. RJ, Paz e Terra, 1985
- A fantasia desfeita. SP, Paz e Terra, 1989
- Transformação e crise na economia mundial. SP, Paz e Terra, 1987
- ABC da dívida externa. SP, Paz e Terra, 1989
- Os ares do mundo. SP, Paz e Terra, 1991
- Brasil, a construção interrompida. SP, Paz e Terra, 1992
- Obra autobiográfica de Celso Furtado, 3 vol., ed. de Rosa Freire d'Aguiar. SP, Paz e Terra, 1997
- O capitalismo global. SP, Paz e Terra, 1998
- O longo amanhecer. SP, Paz e Terra, 1999
- Em busca de um novo modelo. SP, Paz e Terra, 2002
English translations
- The Economic Growth of Brazil: A Survey from Colonial to Modern Times (1963), Los Angeles: University of California Press
- Development and Underdevelopment (1964), Los Angeles: University of California Press
- The Colonial Economy In Brazil In the centuries XVI and XVII
- Accumulation and Development: The Logic of Industrial Civilization (1983), Oxford: Martin Robertson
- Economic Development of Latin America: A Survey from Colonial Times to the Cuban Revolution (1970), 2nd ed.: 2003, translation: Suzette Macedo, Cambridge University Press
- No to Recession and Unemployment: An Examination of the Brazilian Economic Crisis (1984), London: TW Foundation
- Global Capitalism (1998), translation: Jorge Navarrete, ©1999, Fondo de Cultura Economica, Mexico
(with Sue Branford)
- Obstacles to development in Latin America (1970), New York: Anchor Books-Doubleday
- Diagnosis of the Brazilian Crisis (1965), Los Angeles: University of California Press
Analysis
The Economic Growth of Brazil (original title, Formação Econômica do Brasil) is his best known book and considered a national classic, studied in all Economics courses in Brazil. First published in 1959, it depicts Brazil's economic history and the causes of underdevelopment.In O Mito do Desenvolvimento Econômico (The myth of economic development, in Portuguese), published in 1974, Furtado almost prophetically refers to the "spread of the world economy" ("mundialização da economia") when describing the ongoing economic process known today as globalization
Globalization
Globalization refers to the increasingly global relationships of culture, people and economic activity. Most often, it refers to economics: the global distribution of the production of goods and services, through reduction of barriers to international trade such as tariffs, export fees, and import...
and raises questions about issues we are living today:
1) The myth of economic development versus the need natural resources for economic processes: it's a myth to think that economic development, and its benefits, will some day reach everyone in the world if the model of economic development does not change. For instance, there are not sufficient natural resources
Natural Resources
Natural Resources is a soul album released by Motown girl group Martha Reeves and the Vandellas in 1970 on the Gordy label. The album is significant for the Vietnam War ballad "I Should Be Proud" and the slow jam, "Love Guess Who"...
available for every person in the world if one considers the economic model on which economy was based in the 1970s and is also based currently, i.e. the model where consumerism and individualism are the base for corporate actions. For instance, if every person had money to buy a car, our cities would be completely frozen. The critics on the myths of economic development were based on a report for the Club of Rome
Club of Rome
The Club of Rome is a global think tank that deals with a variety of international political issues. Founded in 1968 at Accademia dei Lincei in Rome, Italy, the CoR describes itself as "a group of world citizens, sharing a common concern for the future of humanity." It consists of current and...
, which is summarized in Abstract of The limits to Growth: a report to The Club of Rome;
2) About poverty: in countries that do not have "central" economies (countries that are not the base for giant corporations), at most 10% of population could reach the level of wealth achieved by people in the richest countries. Peripheral economies, which would not create an independent and more complete economy, would continue to be poor countries, with increasing differences between poor and rich people inside this societies;
3) About the World economic superstructure: The world superstructure of capitalist economy (mainly IMF
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
and GATT
General Agreement on Tariffs and Trade
The General Agreement on Tariffs and Trade was negotiated during the UN Conference on Trade and Employment and was the outcome of the failure of negotiating governments to create the International Trade Organization . GATT was signed in 1947 and lasted until 1993, when it was replaced by the World...
, which originated WTO
World Trade Organization
The World Trade Organization is an organization that intends to supervise and liberalize international trade. The organization officially commenced on January 1, 1995 under the Marrakech Agreement, replacing the General Agreement on Tariffs and Trade , which commenced in 1948...
(World Trade Organization) would, on the one hand, increase control over the world economy, also increasing freedom for capital's flows and for big corporations' actions, and, on the other hand, would decrease the number of possible options available for governments, mainly for poor country's governments. This is the kind of development that has been taking place for the last 30 years.