Hostname: page-component-586b7cd67f-t7czq Total loading time: 0 Render date: 2024-11-28T17:12:58.449Z Has data issue: false hasContentIssue false

Ideological “guerrillas” and the quest for technological autonomy: Brazil's domestic computer industry

Published online by Cambridge University Press:  22 May 2009

Emanuel Adler
Affiliation:
Lecturer in International Relations at the Hebrew University of Jerusalem.
Get access

Abstract

Brazil's domestic computer industry, developed during the past decade, has excluded multinational giants such as IBM from Brazil's growing micro- and minicomputer markets. Changes in computer technology and in markets, as well as in domestic economic and political conditions, helped facilitate Brazil's progress toward technological independence. But primary support for the project came from technocratic and military elites who were determined for ideological reasons to reduce Brazil's computer dependency and to challenge the dominance of multinationals. Ideologically motivated technocrats used their positions in state bureaucracies to convince policy makers of the industry's viability and to set up institutions that would defend the autonomy model and turn a sectoral policy into a national policy. Brazil still depends on foreign software and microelectronics; however, bargaining theory correctly asserts that even dependency in sophisticated technological sectors can be partially overcome. Bargaining theories must not overlook the importance of cognitive and institutional processes, which can make the difference between taking action to reduce dependency or doing nothing.

Type
Articles
Copyright
Copyright © The IO Foundation 1986

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

1. For example, a relatively poor educational system, scientific and technological underdevelopment, lack of managerial experience and capital, and a strong dependence on the products of multinational corporations (MNCs). The dependency literature has become too large to be summarized in one footnote. A good article analyzing different approaches and their respective definitions is Palma, Gabriel, “Dependency: A Formal Theory of Underdevelopment or a Methodology for the Analysis of Concrete Situations of Underdevelopment?” World Development (08 1978)Google Scholar. See also Caporaso, James, ed., special issue on dependence and dependency in the global system, International Organization 32 (Winter 1978)Google Scholar. For an analysis of some of the consequences of technological dependency see Cooper, Charles, ed., Science, Technology, and Development: The Political Economy of Technical Advance in Underdeveloped Countries (London: Frank, 1973)Google Scholar; for a study of Latin America's dependency see Bath, Richard and James, Dilmus D., eds., Technological Progress in Latin America: The Prospects for Overcoming Dependency (Boulder: Westview, 1979)Google Scholar; and for an analysis of Brazil's technological dependency on MNCs, see Evans, Peter, Dependent Development: The Alliance of Multinational, State and Local Capital in Brazil (Princeton: Princeton University Press, 1979)Google Scholar.

2. See for example, Vernon, Raymond, Storm over the Multinationals: The Real Issues (Cambridge: Harvard University Press, 1977)Google Scholar; Moran, Theodore, Multinational Corporations and the Politics of Dependence: Copper in Chile (Princeton: Princeton University Press, 1977)Google Scholar; and Bergsten, C. Fred, Horst, Thomas, and Moran, Theodore, American Multinationals and American Interests (Washington, D.C.: Brookings Institution, 1978)Google Scholar.

3. For a study showing how the balance of power can shift in favor of developing countries even in high-technology sectors see Grieco, Joseph M., “Between Dependency and Autonomy: India's Experience with the International Computer Industry,” International Organization 36 (Summer 1982)CrossRefGoogle Scholar. For a more extensive analysis see Grieco, , Between Dependency and Autonomy: India's Experience with the International Computer Industry (Berkeley: University of California Press, 1984)Google Scholar.

4. For the importance of eclectic ideologies in Latin America see Anderson, Charles W., Politics and Economic Change in Latin America (Princeton, N.J.: Van Nostrand, 1967), p. 41Google Scholar.

5. Odell, John S., U.S. International Monetary Policy: Markets, Power, and Ideas as Sources of Change (Princeton: Princeton University Press, 1982), pp. 362–63Google Scholar; and Szalay, Lorand B. and Kelly, Rita Mae, “Political Ideology and Subjective Culture: Conceptualization and Empirical Assessment,” American Political Science Review (09 1982), p. 585Google Scholar.

6. Holzner, Burkart and Marx, John H., Knowledge Application: The Knowledge System in Society (Boston: Allyn & Bacon, 1979), p. 82Google Scholar.

7. Odell, , U.S. International Monetary Policy, p. 62Google Scholar.

9. Freeman, John R. and Duvall, Raymond D., “International Economic Relations and the Entrepreneurial State,” Economic Development and Cultural Change (01 1984), pp. 375–76Google Scholar; and ibid., p. 376.

10. Borges, Wando Pereira, president of Digibrás, Hearings before the Parliament (Câmara dos Deputados) (Mimeo, Brazil, D.F., 31 08 1977)Google Scholar; Grieco, , Between Dependency and Autonomy, p. 158Google Scholar; Tigre, Paulo Bastos, “Indústria de Computadores e Dependência Tecnológica no Brasil” (Master's thesis, University of Rio de Janeiro, 1978), p. 75Google Scholar; CAPRE, Boletim Técnico 1 (0103 1979), pp. 3839Google Scholar; and Levine, G. B., “Brazil 1976—Another Japan?Datamation 21 (12 1975)Google Scholar.

11. SEI, Boletim Informativo 3 (0609 1983), p. 10Google Scholar.

12. Data News, 3 May 1983, p. 9; and Brazil Trade and Industry, May 1982, p. 11.

13. The SEI (which has been in charge of computer policy since 1979) classifies computers according to their mean value: class 1, $20,000; class 2, $90,000; class 3, $180,000; class 4, $670,000; class 5, $1,900,000; and class 6, $3,000,000 (SEI, Boletim Informativo 8 [July–September 1982], p. 5). Roughly, the six classes stand for microcomputers, minicomputers, small, medium-sized, large, and very large computers. The microcomputer category includes electronic accounting machines and desktop models.

14. SEI, Botetim Informativo 3 (0609 1983), p. 7Google Scholar.

15. Dados e Idéias 5 (0405 1977), p. 30Google Scholar.

16. Bennett, Robert A., “IBM in Latin America,” in Gunneman, Jon P., ed., The Nation State and Transnational Corporations in Conflict: With Special Reference to Latin America (New York: Praeger, 1975), Appendix B, p. 225Google Scholar.

17. United Nations Center on Transnational Corporations (UNCTC), Transhorder Data Flows and Brazil (New York: United Nations, 1983), p. 80Google Scholar; Brazil Trade and Industry, May 1982, p. 12; and information provided to me by IBM do Brasil.

18. Data News, 15 May 1984, p. 4.

19. SEI, Boletim Informativo 3 (0609 1983), p. 11Google Scholar.

20. Ibid., pp. 13, 18.

21. Tigre, Paulo Bastos, Technology and Competition in the Brazilian Computer Industry (New York: St. Martin's, 1983), p. 94Google Scholar.

22. Data News, 6 November 1984, p. 6.

23. UNCTC. Transborder Data Flows and Brazil, p. 98Google Scholar.

24. Malan, Pedro S. and Bonelli, RegisThe Brazilian Economy in the Seventies: Old and New Developments.” World Development 5 (0102 1977). pp. 36 and 38CrossRefGoogle Scholar. and United Nations Industrial Development Organization (UN1DO), Industrial Priorities in Developing Countries (New York: United Nations, 1979). pp. 23Google Scholar.

25. Success eluded Brazil's attempt to master the nuclear fuel cycle and set up a large number of nuclear plants, despite the agreement signed with West Germany to effect the largest technology transfer in history and despite spending billions of dollars. For an analysis of the Brazilian–West German deal see Gall, Norman, “Atoms for Brazil. Dangers for All,” Foreign Policy 23 (Summer 1976)Google Scholar. For a description of the Brazilian nuclear power industry and its problems see Luddeman, Margarete K., “Nuclear Power in Latin America: An Overview of Its Present Status.” Journal of Interamerican Studies and World Affairs 25 (08 1983)CrossRefGoogle Scholar.

26. Wad, Atul, “Microelectronics: Implications and Strategies for the Third World,” Third World Quarterly 4 (10 1982), p. 629CrossRefGoogle Scholar.

27. Borrus, Michael, Millstein, James, and Zysman, John, with the assistance of Arbisser, Aeton and O'Neill, Daniel, International Competition in Advanced Industrial Sectors: Trade and Development in the Semiconductor Industry, Joint Economic Committee, 97th Cong., 2d sess., 18 02 1982, p. 34Google Scholar.

28. Ypsilanti, Dimitri, “The Semiconductor Industry,” OECD Observer 132 (01 1985), p. 14Google Scholar.

29. Business Week, 2 August 1982, p. 55.

30. Grieco, , Between Dependency and Autonomy, p. 58Google Scholar; World Business Weekly, 21 April 1980, p. 35.

31. Wad, , “Microelectronics,” p. 679Google Scholar.

32. For example, a 32-bit microprocessor with the power of a mainframe computer can execute one million or more instructions per second; analysts predict it will cost no more than twenty dollars by the end of the 1980s. Business Week, 30 July 1984, p. 56.

33. Business Week, 23 May 1983, p. 53.

34. Borrus, et al. , International Competition in Advanced Industrial Sectors, p. 123Google Scholar, and Ypsilanti, , “The Semiconductor Industry,” p. 15Google Scholar.

35. World Business Weekly, 20 April 1981, p. 30.

36. Time, 11 July 1983, p. 45, and Business Week, 8 June 1981, p. 84.

37. New York Times, 20 January 1985, p. D–5.

38. Business Week, 16 July 1984, p. 61, and Data News, 6 November 1984, p. 14.

39. Business Week, 16 July 1984, pp. 62, 49.

40. See Sagasti, Francisco R., “A Framework for the Formulation and Implementation of Technology Policies: A Case Study of ITINTEC in Peru,” in Ingerson, Earl and Bragg, Wayne G., eds., Science, Government, and Industry for Development, the Texas Forum (Austin: University of Texas Institute of Latin American Studies, 1975), pp. 207–10Google Scholar.

41. Estatistico, Seriado, Revista Brasileira de Tecnologia 13 (0505 1982), p. 61Google Scholar; United Nations Educational, Scientific, and Cultural Organization. Statistical Yearbook 1975 (Paris: UNESCO, 1975), p. 527, and ibid., 1978–79, p. 845.

42. National Council of Science and Technology (CNPq), Avaliāāo e Perspectivas, vol. 3, 1978, p. 47Google Scholar.

43. Saur, Ricardo A. C., Hearings before the Parliament (Câmara dos Deputados) (Mimeo, Brazil, D.F., 1977), p. 17Google Scholar.

44. CNPq, Avaliaçāo e Perspectivas, p. 47Google Scholar; UNCTC, Transborder Data Flows and Brazil, p. 91, 97Google Scholar.

45. Ferranti built a general purpose and real-time 16-bit computer designed for use in data communications networks, real-time information systems, and process control. Yolen, Steve, “Computer Production Prospects in Brazil Brighten,” Electronics News, 7 06 1976, p. 32Google Scholar.

46. Evans developed the tripé thesis in Dependent Development.

47. See Baranson, Jack, North-South Technology Transfer: Financing and Institutional Building (Mt. Airy, Md.: Lomand, 1981), pp. 3842Google Scholar.

48. Tigre, Paulo Bastos, “Brasil: A Future in Homemade Hardware,” South, 02 1982, p. 99Google Scholar.

49. Helena, Silvia, “Os Banqueiros e ar COBRA,” Dados e Idēias 5 (0405 1977), p. 35Google Scholar.

50. Grieco, , “Between Dependency and Autonomy,” p. 625Google Scholar.

51. Saur, , Hearings, p. 16Google Scholar.

52. See, for example, Seminario sobre Computçāo na Universidade, Recomendaçōes, Florianópolis, 29 09 1977Google Scholar.

53. Grieco, “Between Dependency and Autonomy,” even identified the main “guerrilleros” when he wrote: “In 1971, the individual selected to head both the Commission and the Department was M. G. K. Menon, who was until then director of the Tata Institute for Fundamental Research, which is under the Atomic Energy Commission. His key deputy in the Department was A. Parthasarathi, who had been a principal officer in the AEC. An important analyst for the AEC, N. Seshagiri, was chosen to head the Electronics Commission's intelligence-gathering and analysis unit” (p. 627).

54. Dados e Idéias 1 (0405 1980), p. 8Google Scholar. For example, in 1976 CAPRE examined 2,000 requests and granted only $115 million of the $250 million requested.

55. UNCTC, Transborder Data Flows and Brazil, p. 63Google Scholar.

56. Saur, , Hearings, p. 4Google Scholar.

57. CAPRE, Boletim Informativo 4 (0709 1976), p. 53Google Scholar.

58. Millan, Marflia Rosa and de Araiijo, Joāo Lizardo Hermes, “Na Palavra dos Té'cnicos, um Ponto de Vista National,” Cadernos de Tecnologia e Ciência, 1 (12 197801 1979), p. 36Google Scholar.

59. CAPRE, Boletim Informativo 4 (0709 1976), p. 53Google Scholar.

60. Helena, Silvia, “Minis: A Decisāo Final,” Dados e Idéias 2 (1011 1977), pp. 3435Google Scholar.

61. Business Latin America, 19 October 1977, p. 331.

62. Conjuntura Econômica, February 1979, p. 95.

63. UNCTC, Transborder Data Flows and Brazil, p. 69Google Scholar.

64. SEI, “Ato Normativo” (Mimeo, 03 1980)Google Scholar; ibid., June 1980.

65. But SEI made certain that Model 4331 remained a medium-sized computer by stipulating that its minimum memory power had to be 2 million bytes, that the nationalization index would be set at the 85% level established by the Industrial Development Council, and that for each two units sold in Brazil, three had to be exported. Business Latin America, 22 October 1980, p. 344.

66. Coordination of Entities for the Defense of an Informatics National Industry, “Análise da Decisāo da SEI de 6 de Agôsto de 1980” (mimeo, 14 August 1980). According to SEI's secretary general Octavio Gennari Netto, the decision to allow IBM to manufacture its Model 4331 did not undermine the Model because at the time Brazil did not have the potential to manufacture a computer that size. He stated that the permit was not the result of pressure by IBM but of an understanding at SEI that the market would gain (customers were unattended at that size level) and the Model would not lose.

67. Gennari confided that the statements attributed to him regarding the market reserve were the result of selective editing by the media in order to inflame the controversy between those for and against the market reserve. SEI may also have used these remarks to frighten the domestic industry into becoming more competitive.

68. Data News, 26 July 1983, p. 2.

69. Ibid., 24 July 1984, p. 8.

70. Transnational Data Report on Information Policies and Regulations 7 (12 1984), pp. 431–32Google Scholar.

71. Data News, 18 October 1983, p. 6.

72. Ibid., 9 October 1984, p. 2.

73. Ibid., 17 August 1977, p. 1.

74. Yolen, Steve, “Brazil Move May Impact IBM/32 Plans,” Electronics News, 13 12 1976, pp. 30, 40Google Scholar.

75. de Conceiçāo, Maria, “Uma Luta Desigual,” Dados e ldéias 3 (12 197601 1977), p. 17Google Scholar.

76. UNCTC, Transborder Data Flows and Brazil, p. 78Google Scholar.

77. Data News, 1 November 1983, p. 6, and ibid., 24 July 1984, p. 4; O Estado de Sao Paulo, 13 January 1984, p. 23.

78. Tigre, , Technology and Competition, p. 144Google Scholar.

79. Despite all these similarities, the technological and practical outcomes differed in both countries: IBM adapted to Brazil's new reality but left India altogether.

80. I thank Manuel Fernando Lousada Soares (Informatics and Communication Coordinator, CNPq) for calling my attention to this process.

81. The term subversive is not intended to be derogatory. I mean it metaphorically to convey the process by which people who hold certain ideas can influence political action.

82. Odell, , U.S. International Monetary Policy, p. 63Google Scholar.

83. Hirschman, Albert O., “The Turn to Authoritarianism in Latin America and the Search for Its Economic Determinants,” in Collier, David, ed., The New Authoritarianism in Latin America (Princeton: Princeton University Press, 1979), pp. 8687Google Scholar.

84. Toulmin, Stephen, Human Understanding: The Collective Use and Evolution of Concepts (Princeton: Princeton University Press, 1972), p. 289Google Scholar.