ADJUSTMENT POLICIES OR GOVERNMENT EROSION IN BRAZIL

The Brazilian government's capacity for intervention has been weakened by the dismantlement of interest groups and the lack of alternative s tructures. Since the three ''governability'' factors (autonomy, concen tration and mobilization) are weak, trade liberalization and privatiza tion are applied ineffectively. Moreover, the private sector is divide d and unable to react, so the state's loss of power is not compensated for by an increase in the private sector's competitivity and dynamism , which, in turn, results in further erosion of the state's power.