The 'Brazilian Miracle' from the late 1960s to early 1970s involved state-led industrialization that produced rapid GDP growth. However, this growth was fueled by extensive foreign borrowing and resulted in high inflation and a massive debt crisis in the 1980s. This case illustrates how a developmental state model can fail when it lacks fiscal discipline and is not accompanied by sustainable financing, leading to macroeconomic instability rather than long-term prosperity.