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BRAZIL HISTORICAL 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.