The early 21st century is witness to the rise to power of new leftist and center-left governments in South America which have at least two common traits: the questioning of pro-market policies and reforms which were carried out over the preceding decade and the return of the State as a central actor in economic life. In spite of this convergence, a deeper analysis would allow us to perceive a certain heterogeneity in the programmatic and organizational character of the new progressive governments. In this regard, we propose an analysis of the responses to the crisis of neo-liberalism that the Brazilian and Argentine governments have provided, placing special emphasis on economic development policies and their implications for regional integration. This more systematic analysis enables us to see that Argentina and Brazil have made different choices regarding what type of policies they have adopted. Brazil has resorted to more orthodox practices such as restrictive monetary policies meant to contain inflation, while Argentina has preferred more heterodox methods such as price controls and export restriction, as well as other policies that encourage consumption. To a certain degree, the differences between the choices made can be attributed to the very economic and political trajectory of each country: pro-market reforms were more intense in Argentina than in Brazil, which meant, regarding productive structure, greater de-industrialization and the extinction of several developmentalist institutions.
Argentina; Brasil; development policy; regional integration; comparative economic policy