Brazil: The Assetization of Rights Corroding the 1988 Social Compact
Abstract
This article analyzes the development of financial hegemony in Brazilian capitalism through successive expropriative dynamics. It first reconstructs the transition from ‘elite financialization’ (1981-94), characterized by high interest regimes and state privatization, to ‘mass financialization’ (1995-2016), driven by pension capitalization and the collateralization of social policy. These mechanisms expanded credit and indebtedness among working classes. The article then examines a new phase under Lula 3 centered on the assetization of social rights. In this configuration, the state actively creates and multiplies asset classes to finance welfare provision, most notably through sovereign securities earmarked for social policy. It argues that this model legitimizes a contractionary fiscal environment aligned with Brazil’s New Fiscal Framework and reshapes the relationship between social rights, public finance, and financial markets.
Presentato: 22 Dicembre 2025 | Accettato: 29 Gennaio 2026 | Pubblicato 21 Maggio 2026 | Lingua: en
Keywords Debt-led Social Policy • Fiscal Austerity • Financialization • Assetization of Social Rights • Brazilian Capitalism
Copyright © 2026 Lena Lavinas, Guilherme Leite Gonçalves. This is an open-access work distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction is permitted, provided that the original author(s) and the copyright owner(s) are credited and that the original publication is cited, in accordance with accepted academic practice. The license allows for commercial use. No use, distribution or reproduction is permitted which does not comply with these terms.
Permalink http://doi.org/10.30687/INQ/3035-0395/2026/03/006