Purpose

This conceptual paper examines and evaluates patronage and clientage as a system of interrelated dyadic exchanges between unequals through which goods and services circulate, flowing both up and down through stratified societies. The parties involved may be in different places socially and geographically.

Design/methodology/approach

Data are presented for Brazil from the period of the Old Republic beginning in the 1890s, through the end of the Military Dictatorship in mid-1980s, and finally to the present, ending with today’s conditional cash transfer programs. The data are examined against the background of a 15th century book, O Livro da Virtuosa Bemfeituria(The Book of the Virtuous Benefits), written by a Portuguese Prince influential in the expansion and discoveries as a guide for princes and great lords that is used in the paper very much in the way that Adam Smith’s writings are used for most economic behavior today.

Findings and implications

There are striking parallels over this long historical period in the behaviors referred to as patronage and clientage that may be conceptualized as an older (traditional) way of ordering the flow of goods and services (distributing them), alternative and parallel to market mechanisms that have, and continue to operate in Brazilian society.

Social implications

Patronage and clientage are often-misunderstood behaviors, sometimes referred to as corrupt, that alternatively may be explained and understood as part of a still viable and operational socio-cultural system that goes back to a period before the colonization of Brazil.

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