Developmentalism in Trenado

Developmentalism in Trenado is a recurring economic strategy that has been in practice since the Pato Pezzella administrations, between 1888 and 1908. The industrializing strategy has led to significant evolutions in the country's financial status, though it was also adapted to laissez-faire influences during certain governmental administrations.

Developmentalism is often defined as a theory that defends the use of a strong and varied internal market and high tariffs on imported goods, to favor less-developed nations. The definition of the word has been more flexible in Trenado, however, generally being related to the term angular development — coined by former Minister of Economy Simonetti Alves in 1962 — which implies a strong emphasis on positively-balanced exportations, mass production and investments in education to amplify future workforce. Although generally associated with Social Democratic mandates, it was a strategy frequently employed by the Libertarians when leading the nation's economy between 1973 and 2000.

History

First Republic (1807–1932)

The metallurgical plants were strong propellers for the Trenadian economic development in the 1870s.

Trenado's economic strength after gaining independence in May 1807 was strongly fragilized due to economic limitations imposed initially by the Spanish Empire, and the lack of recognition from countries in the international community. Thus, the Abraham Saabedra administration was remarkably dependant on trading and developing strong diplomatic relations with other countries, such as France and the United States. Pato Pezzella's administrations (1888–1908) marked the first significant attempt to implement developmentalist policies in Trenado, as a response to the neo-colonialist tendencies and conflicts in Europe. The president's financial cabinet, inspired by the economic transformations taking place in Europe and North America, sought to modernize the nation by investing heavily in infrastructure and promoting industrial growth. His government raised tariffs on imported goods to protect fledgling local industries from foreign competition and encouraged the production of textiles, steel, and agricultural machinery.

Santiago de Medeiros, who served as Minister of Economy from 1901 to 1908, had a perspective of not only reducing Trenado’s dependency on foreign imports but also fostering a self-sustaining internal market that could drive economic growth. His strategy was based in creating a network of interdependent industries, where growth in one sector would stimulate others. By the early 1920's, this economic plan would see the nation being widely advanced in the South American economic sphere, although the Libertarian presidents Victor Novoa and Filipe Salles would pursue a laissez-faire style of financing. This new strategy would open the economy for more importing, reducing tariffs and leading to a strong influx of cheaper goods and capital, though the industrial workforce would suffer a slight decline.

The Great Depression, however, would cause a change of scenery for the country's economic plans, as liberal policies would not be sufficient to keep up the growth. Alongside the rise of the Integralist Union and the 1932 coup d'etat, developmentalist strategies would return as the nation needed replacements for the less attractive idea of importing from countries that were producing in minor quantities due to the financial crash.

New Republic (1947–)

The rapid construction and importation of technological devices sparked economic growth in the New Republic.