CREDIT IS EVERYWHERE: popular credit policies between the brazilian center-left and the mexican right

Abstract

Popular credit policies have sparked both empirical and theoretical controversies. This article compares policies simultaneously implemented in two Latin American countries by ideologically divergent governments: in Brazil, during Lula’s (PT) first term, representing the center-left, and in Mexico, under Vicente Fox’s presidency (PAN), representing the right. The objective is to analyze the actors involved in the formulation and implementation of these policies, as well as the designs adopted. We argue that the specific actors involved influence the policy’s design and that each actor’s participation is enabled by the incumbent government. The research employs a qualitative methodology, involving in-depth interviews with “elite informants.” In Brazil, the interviews covered (i) bureaucrats, (ii) union leaders, and (iii) bankers. In Mexico, union leaders were excluded, as they did not participate in the debates on popular credit policies. Although Brazil and Mexico implemented similar policies, their designs, actors, and proponents’ motivations varied, leading to distinct outcomes. This disparity can be attributed to the involvement of unions in the Brazilian process and international organizations in the Mexican case.