Public fund and dependency: state intervention in the capital cycle in a dependent economy

This article seeks to deepen discussions on dependency and public fund in the Brazilian and Latin American contexts. It assumes that the capital cycle in dependent economies presents peculiarities due to the massive presence of foreign capital and the role of the state, which must ensure instruments and conditions for the reproduction of capital internally and the maintenance of value transfers to central countries. In this context, the export-oriented pattern of productive specialization and the characteristics of economic policy that support this pattern of capital reproduction are discussed. Methodological procedures include a bibliographic survey on public fund, dependency, and taxation, and qualitative and quantitative data were mobilized from reports by the Brazilian Federal Revenue Service (RFB), the Economic Commission for Latin America and the Caribbean (ECLAC), the Inter-Union Department of Statistics and Socioeconomic Studies (DIEESE), and data extracted from The Atlas of Economic Complexity. The analysis shows that the collection and allocation of public fund are impacted by overexploitation and value transfers, with taxation used to favor the extractive and rentier sectors of elites historically uninterested in national development or stimulating the domestic market. The conclusion is that asserting sovereignty requires a plan to overcome dependency, limiting value transfers and keeping rent within national economies, socializing the wealth currently concentrated among local and foreign elites.