B Oul Essay

2724 words - 11 pages

In the 1500s Pedro Alvares Cabral landed on Brazil, previously inhabited by tribal nations, and claimed the land in the name of Portugal. Brazil remained a Portuguese colony until September 7, 1822 when it declared its independence becoming the Empire of Brazil making the nation a constitutional and monarchy with a parliamentary system. In early 1964, a Military junta took control of the nation until it fell in 1985 further changing the structure of the nation, and finally in 1988 a formal constitution was created enacting 26 states encompassing its boarders. Throughout the history of Brazil, the nation was never able to fully immerse itself in the international market and expand its economy, until today. Latin America has not had the best of luck when it comes to economic development and many nations in the region have been through similar issues when it comes to economic and social development. For example, before the military coup in 1964 Brazil was in massive amounts of debt to international partners, however, during the military rule the payment of this debt was halted so the trust and economic backing of these countries stopped with the payments. Many plans have been enacted after the fall of the military control to reverse the economic downfall that occurred in the country and continent in the 20th century and especially in the 1980s, the lost decade. In Brazil alone, there have been at least seven economic plans to reverse the economic hardships of the country, from the Cruzado Plan to the Real Plan, none seemed to work. However, in the past decade the Brazilian economy has seen an amazing appreciation and the condition of life of the people in the nation has increased with it. The question becomes, how did Brazil accomplish this and what were the sources of growth for Brazil and what effects did this have on society.
First, before one can figure out the reason for Brazil’s growth one has to look into the past to see where the country was to be able to see how it got to where it is today. The Brazilian economy has been at a constant state of change, from the time of colonization in the 16th century to today. In the 16th century, Brazil had an imperial mercantile economy, and then in the 1930s Brazil began modernizing its industry to match the industrial economies of the time. Following the World War II the country as a whole began shifting, before the war about a third of the population lived in the metropolitan areas but as early as 1990s over 70% of the people live in the urban setting (Watkins). With the movement into the cities, the nation’s industrial sector grew 40% in GNP, with domestic and exportable products being created.
Around the 1930s, Brazil and Latin American began following the process of Import Substitution Industrialization, which lasted until the end of the 1980s. The ISI policies devaluated the currency in order to boost exports and discourage imports, followed by adopting different exchange rates for goods...

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