THE BRAZILIAN STATE IN THE NEW DEMOCRACY Paper for panel on APPRAISING BRAZILIAN DEMOCRACY XX International Congress Latin American Studies Association

This paper analyzes the contradictory impact of democratization on the Brazilian state. The return of democracy initially reinforced the efforts of clientelist politicians and "special interest " groups to win influence inside the state. Yet the resulting corrosion of state aut nomy and capacity exacerbated Brazil's severe economic problems, which discredited established elites. In this crisis situation, democratic elections produced a renovation in political leadership and allowd determined reformers--first Fernando Collor, then Fernando Henrique Cardoso--to win office and try to rebuil he state, for instance through tax reform. Under democracy, the initial deterioration of state capacity thus triggered efforts to jump-start economic development and strengthen the state. How does a country's transition to democracy affect its state?This question is of great importance,1 given the crucial role that the state has played in the economic, social, and political development of most countries affected by the "third wave " of democratization. Yet this topic has received insufficient scholarly attention. I fact, definitional assumptions may make this question appear as2 a non-issue: Because the state is regarded as more permanent than a political regime, which can change with disturbing frequency, democratic transitions are often assumed to leave the stat