Notes on the development process of the southern and northern halves of the state of Rio Grande do Sul: A comparative approach

Abstract

The economy of the state of Rio Grande do Sul has demonstrated great regional discrepancies both in social and economic terms. Starting from this paradigm, the article tries do better understand the process of regional inequalities on the basis of the historical constitution and the economic dynamics of Rio Grande do Sul. Thus, it identifies the dynamic sectors of the economy and their characteristics in the southern and northern halves of the state. The methodological approach is based on the socio-economic comparisons between these two regions. The main result is the identification of the existence of large estates, weak entrepreneurship and conservatism of the capitalists of the southern half, in addition to low demographic density, limited market and absence of economies of agglomeration, which are the factors the determine the region’s stagnation. On the other hand, in the northern half the development was accomplished on a capitalist foundation, interconnected to the business centers of Porto Alegre and Caxias do Sul, in addition to the development of small farms and agriculture for subsistence, which account for the greater growth and development of this region.

Key words: territorial occupation; regional inequality; economic growth.