IN 2009, as Brazil was buffeted by the global financial crisis, its president, Luiz Inácio Lula da Silva, was seething. The mess, he complained, was the fault of “blue-eyed white people, who previously seemed to know everything, and now demonstrate they know nothing at all”. For him the crisis was a repudiation of Anglo-Saxon liberalism and a vindication of state capitalism. Like many countries, Brazil cut interest rates and increased spending. Unlike many other governments, however, Brazil’s used its state development bank, BNDES, to funnel subsidised credit to Brazil’s largest companies. Thanks to cheap loans from the Treasury, the bank doubled its lending, which reached a peak of 4.3% of GDP in 2010. For most loans the interest rates were half the level of Selic, the central bank’s benchmark.