Published online by Cambridge University Press: 22 May 2009
Development policy is analyzed by liberal models in terms of bargaining transactions between interest-maximizing actors and by the dependency perspective in terms of the internalized requirements of worldwide capital accumulation. Both approaches assume the working of capitalist rationality in dependent nations. In contrast, a focus on productive relations, class alliances, and political coalitions reveals the constraints on developmental policies in nations built around the partial development of capitalist productive forces and occupying a subordinate role in the international division of labor. Analysis of the Venezuelan auto policy during the Pérez administration (1974–79) shows the relations constituting socially defined actors and the structures underlying the policy bargaining process. It posits that in Venezuela there is a growing disjuncture between the internationally conditioned requirements of capital accumulation and the locally based demands of social reproduction; that the common interest of state and bourgeoisie in maintaining the rentier basis of the economy shapes the direction and extent of industrial development; and that circulation of petrodollars has absorbed production as a phase of circulation. The struggle between state and transnational corporations over local engine manufacture, and the tension between import substitution and export promotion, concealed an underlying conflict between rent appropriation and capital accumulation.
This paper is dedicated to the memory of Lya Imber de Coronil. It is part of a larger research project; fieldwork in Venezuela was financed by CONICIT and supported by CENDES. Analysis and writing were supported by a grant from FUNDAYACUCHO and facilitated by the University of Chicago. An earlier version was presented at the eighth annual meeting of the Latin American Studies Association, Pittsburgh, Penn., April 1979. Our work has benefited from critical comments by Alba Alexander, Enrique Baloyra, Robert Bond, John Coatsworth, Bernard Cohn, John Comaroff, Nora Hamilton, Dan Hellinger, Jack Jacobsen, David Moberg, Philippe Schmitter, Raymond Smith, David Thomas, and Michael Wallerstein. We also express gratitude to Terence Turner and Adam Przeworski, who discussed each draft of this paper, and to Peter Katzenstein and two anonymous readers of International Organization's editorial board for their suggestions.
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34 Untitled confidential memorandum, Ministry of Development, 1974; interviews with members of the draft commission.
35 Both José Ignacio Casals and Constantino Quero Morales became ministers of development under Pérez; Aura Celina Casanova headed the state's Industrial Bank. Their “Estudio sobre la industria automotriz venezolana y sus perspectivas de desarrollo” (Caracas: ECODESA, 1969)Google Scholar, was commissioned by the Venezuelan Development Corporation (CVF) from their private consulting firm.
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38 Grupo Andino, no. 69.
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43 Between 1974 and 1976 the GNP grew at a rate of 6.13%, but demand expanded at a rate of 9.6%. Imports made up the difference and rose at a rate of 36.9%. Industrial output expanded 11%, but the rate of private investment in industry declined, and only in 1976 reached the 1972 level. In 1977 industrial output increased only 4%, while commerce expanded 34%. Central, Banco, Informe Econímico (Caracas: Editorial Arte, 1979).Google Scholar
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45 These negotiations and the bid evaluations were carried out in secrecy. There has been no public information on the bid contents. Data here were obtained in interviews with numerous industrialists and tecnicos.
46 According to local officers of the firm, VW's home office decided against bidding because of its large new investments in Brazil and Mexico.
47 Mack, Cummins, Ferrostaal, and Steward & Stevenson did not meet minimum bid requirements.
48 President Pérez was known to have a good relationship with FIAT's President Agnelli, whom he visited during his official trip to Italy.
49 Some técnicos stated privately that the government's decision to specify the engine's number of cylinders rather than technical performance was politically motivated. Ford lacked a suitable six-cylinder engine.
50 FAVENPA objected that the new delay created further uncertainty for investors in new parts production, and that it reinforced violations by the assembly firms of the local content requirements. The deficit in parts purchases in 1976 was $12.8 million; by 1977 it was $42.3 million, and by 1978, $64.4 million. Data obtained from the Ministry of Development.
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70 As an interim measure, the government allowed the assemblers to import 15,000 small, low-priced, “popular cars” until October 1981. This move defied the Andean Pact's Sectoral Program.
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80 Interview, September 1980.
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