Analyzing details from the case of Brazil, this chapter explores the impacts of globalization on weak dual welfare states. Specifically, the Brazilian case responds to the three core questions of this book as they apply to dual welfare states. How and why do globalization and race to the bottom pressures lead to welfare retrenchment in dual welfare states? Do cutbacks mean that dual welfare states are undergoing institutional transformation towards a neoliberal welfare state (i.e. convergence)? In dual welfare states, who really gets hurt by welfare reforms in the current era of globalization?

This type of welfare regime, as discussed in chapter 4, pursues a mixed strategy of protective and productive social policies. On the productive side, Brazil emphasizes (near-)universal primary enrollment; the quality of education is poor and gets worse at the secondary level, however. Brazil's protective schemes are focused on the provision of social security and labor market protections. As with India and South Korea, RTB pressures have resulted in cutbacks in some of its welfare programs. In contrast to the other welfare regime types, however, Brazil's welfare regime appears to be the most dynamic, in that retrenchment has occurred in some of its long-standing welfare programs with the intent of improving equity. In fact, significant changes to both the protective and productive components have occurred.