The institutional shift in the state of Espírito Santo since 2003 and its impact on the quality of public policies: an assessment based on ACEMOGLU

Abstract

This article proposes that the institutional shift experienced by the state of Espírito Santo beginning in 2003 – extensively studied by political scientists – can be further understood through the theoretical perspective of economists such as D. Acemoglu (and coauthors). Although in Brazil this author is better known for econometric applications related to the institutional performance of municipalities, the present work aims to show that his theoretical view on the subject, particularly regarding the understanding of inclusive and extractive institutions, may also be useful in explaining the aforementioned institutional shift, even without the possibility, in this case, of applying the same types of econometric methods. The article contributes to the debate by showing that the substantial improvement in the quality of Espírito Santo’s public policies (education, health, public security, reduction of inequality, etc.) from 2003 onward demonstrates the predominance of inclusive institutions over extractive ones (which had been increasingly taking root in the state during the period 1991-2002). To confirm this, through an approach that is both historical and quantitative, Espírito Santo’s public policy indicators are compared with those of a state whose institutions were more stable throughout the studied period (Santa Catarina), and with those of another state that has recently faced the same institutional problems that Espírito Santo was dealing with before 2003 (Rio de Janeiro).

Keywords: inclusive and extractive institutions; public policies; Espírito Santo.