BRAZILHISTORICAL OVERVIEW

Osvaldo Jordan

September 24, 2009

HISTORICAL OVERVIEW

• 1822-1889. Brazilian Monarchy.

• 1889-1930. First Republic.

• 1930-1964. Second Republic.

• 1964-1985. Military Dictatorship.

• 1985-2007. The New Republic.

THE MONARCHICAL PERIOD

• 1808-1821. The Portuguese Monarchy moved to Brazil to escape the Napoleonic Wars.

• In 1822, the people asked King Pedro I to remain as the Brazilian Monarch.

• The weak Brazilian Monarchy established the foundations of FEDERALISM.

• The persistence of African slavery was opposed by POSITIVISM (Order and Progress).

• Slavery was finally abolished in 1888, and a year later, the Monarchy was dissolved.

THE FIRST REPUBLIC

• Domination of the coffee-growing elite of Sao Paulo.

• They alternated power with the dairy producers of Mina Gerais (Café con Leite).

• The military intervened in politics intermittently.

• As in the rest of Latin America, the Great Depression brought the demise of the coffee-export elite.

THE SECOND REPUBLIC

• Getulio Vargas created the Estado Novo (New State).

• He decided to eliminate the Brazilian dessert economy, and promoted Import Substitution Industrialization (ISI).

• He also established minimum wage and labor protection for the workers.

• The central government was strengthened for the first time in the history of Brazil.

THE SECOND REPUBLIC• Vargas dominated Brazilian politics until his

death by suicide in 1954, and was soon followed by Juscelino Kubitschek (1956-1961).

• Kubitschek was the founder of the new capital of the country in the hinterland, Brasilia .

• Celso Furtado (ECLA) became his chief economist.

• The successor of Kubitschek, Joao Goulart was accused of communism by his opponents.

• In 1964, The military decided to stage a coup to save the country from a new Cuban Revolution.

THE MILITARY PERIOD

• In contrast with previous times, the military decided to stay in power indefinitely, following the New Professionalism (Alfred Stepan) and the National Security Doctrine.

• They abolished independent political parties, centralized authority, and closed Congress in several occasions.

• Chief Economist Antonio Delfim Netto advocated for export-led growth.

• 1968-1974. Brazilian Miracle. GDP Annual Growth averaged 11%.

THE MILITARY PERIOD

• The military embarked upon many pharaohnic development projects.

• They also advocated for the Colonization of the Amazon (The Brazilian Frontier).

• There were numerous human rights violations, including many desaparecidos.

• The First Oil Crisis (1973) shook up the foundations of the Brazilian Miracle.

THE MILITARY PERIOD

• The military responded by borrowing money from European and American banks

• The Second Oil Shock (1978) signaled the collapse of the Brazilian economy.

• In the middle of a deteriorating economy, the military allowed for a political opening.

• A new independent labor union was formed under the leadership of the leader of the metalworkers Luis Ignacio Da Silva (Lula).

DEMOCRATIC TRANSITION

• Increasing interest rates multiplied the foreign debt of Brazil, and by 1982, the country declared bankruptcy following Mexico (120 billion).

• In the middle of recession, new political parties were formed, including the Worker’s Party (PT).

• These new political forces demanded for Direct Elections Now! (Diretas Ja!).

• In 1985, Jose Sarney became the first civilian President in more than twenty years.

THE NEW REPUBLIC

• The Sarney administration implemented the Cruzado Plan for currency stabilization, and approved a new constitution in 1988.

• In 1990, Fernando Collor de Mello (PMDB) became the first President elected by direct vote after the military dictatorship.

• He implemented Structural Adjustment (SA) by privatizing government enterprises and lowering tariffs.

• He was the founder of MERCOSUR that also includes Argentina, Uruguay, and Paraguay.

THE NEW REPUBLIC

• Collor de Mello was impeached in 1992, and replaced by Vice-President Itamar Franco.

• A year later, Fernando Henrique Cardoso became finance minister and devised the Real Plan.

• Cardoso (PSDB) wan the presidency in 1994, and was reelected in 1998.

• As President, he continued the implementation of SA, and virtually finished with the existence of state enterprises.

• In 2002, Lula (PT) was elected as President for the first time, and later reelected in 2006.

THE NEW REPUBLIC

• Lula launched the Fome Zero (No Hunger) Program and strengthened Land Reform.

• He opposed American protectionism in the FTAA negotiations, and expanded Brazilian exports to South Africa, India, and China (Pluricentric Regulated Globalization).

• He also opposed American, European, and Japanese protectionism in the World Trade Organization (WTO).

THE LULA PLATFORM• Social Reform- Fome Zero (Zero Hunger)- Land Reform• Economic Growth- Export-Led Development (ethanol, soy

bean, oranges).- Technological Advance (deep-sea oil

drilling, ethanol technology).- International Expansion (Petrobras,

BNDES, construction companies).

THE ETHANOL ALLIANCE

THE LULA PLATFORM

• Brazilian Internationalization

- MERCOSUR, UNASUR, Bank of the South.

- Counterbalancing US Foreign Policy?

- Special Peace and Security Missions.

- International Mediation (Harris), or Brazilian Imperialism (Zibechi)?

BREAKING WITH THE LEFT?

• Political Corruption (The Mensalao Scandal).

• Failed Land Reform and Paternalistic Fome Zero?

• Promoting International Capitalism (The Ethanol Alliance).

• Environmental Destruction (Nepstad Model).

• Grassroots Opposition (Altamira Protests).

ALTAMIRA PROTESTS

THE 2010 ELECTIONS

• Lula’s Reelection? Currently 81% National Approval.

• A continuation of the Workers Party (PT) with Dilma Rousseff?

• A new Brazilian Left, Marina Silva from the new Green Party?

• The return of the Social Democratic Party (PSDB) with Jose Serra?

What will be the future of Brazil: A Champion of Social Justice or the

New South American Empire?• World Social Forums (Porto Alegre, 2001, 2002,

2003, and 2005). In opposition to the World Economic Forum that is celebrated every year in Davos, Switzerland.

• However, according to Zibechi, “the state-owned Petrobras is the archetype for the current expansion of Brazil in South America”.

• He also mentions the National Bank of Economic and Social Development (BNDES) and Norberto Odebrecht.