The Brazilian Revolution in the aspect of my question by Tia Konczak
How did the last broad period after WW2, between 1974-1985 of the industrial revolution impact the economy of Brazil?
The time period of Brazilian industrialization that i had chosen for my topic; which took place in 1974-1985 affected the economic state in present day times as because of the oil shock that happened during the revolution which brought budget deficit and economic problems, loss of foreign support and foreign debt; all these and numerous more issues add to influencing Brazil's present state. Throughout the years the budget deficit developed and is as yet minimizing including making purchaser and business levels coming too close to zero.
As recommendation i insist you to read Brazilian Economy: Growth and Development by Werner Baer. It is a book that is helpful source to collect information as the book discusses topics such as the colonial period is which gives us a insight of the export boom periods which involved the trade of sugar, gold and coffee, he mentioned early government policies, controlled trade, coffee prices, and he lastly talk about industrial development. This book presents the economic history of Brazil and states all important factors needed even the major economic problems.
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During the years 1974-1985 Brazil’s industrial revolution heavily impacted the economy leaving them into debt, loss of foreign trade, budget deficit; and also due to the oil shock that happened in 1973-1974 Brazil could not maintain their economy based on internal trade and export. Although to their massive decline in debt in the economy due by the oil shock Brazil maintained a high economic growth rate and continued to 1981. As also due to the nature of economic growth policies Brazil faces and the withdrawal of economic support from many foreign investors their industrial revolution became unsustainable, this also being a reason they plunged into debt. In the year 1982 Brazil was known to have the biggest foreign debt in the world which was created by excessive loans repayments. Brazil started to buy resources out of the country but as due to debt it cause the foreign debt as they had to borrow money. They owed eighty-seven billion dollars. The government tried to earn trade cash flow by doing a foreign interest on debt but due to failure that lead to economic decline and huge inflation as instead of the government focusing on debts they proceeded to focus on interest of debt. Brazil’s government proceeded with a plan to self sufficiency in 1974, its main components were import substitution( promotion of local industrial commodities, steel, aluminum, petrol chemicals) to increase own local infrastructure. Promote export.
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Compare and Comparison of Economy in 1974-1985 and Modern Time
The economic state of Brazil in 1974-1985: The economy suffered drastic reduction of trade (1973 oil shock) the country grew with debt. The import increased and contributed to the debt and budget deficit. Due to the oil shock they couldn't maintain economy based on internal trade, export (all resources being sold outside the county) was stopped due to the economic state of the world. The government had to start buying resources outside of Brazil but due to the country not having money they had to borrow and it caused foreign debt. Brazil’s economy after 1987 had become a period of considerable difficulties as due to Brazil’s world oil crisis many foreign investors withdrew their economic support for the country. As due to the withdrawal of economic support and the nature of economic growth policies Brazil faced and the industrialization that they could now not sustain it lead the country to plunge into debt. In the year 1974 it was the final period of the military government, which purpose was to demolish opposition and human rights. Use of paramilitary led to terror and violence in the environment required by government to control internal situations and made nation frightened.
In 1974 the legislature built up an arrangement of independence, its primary parts were import substitution( advancement of nearby mechanical products, steel, aluminum, petrol chemicals) to expand their own neighborhood base"*. ECONOMIC DEVELOPMENT: THE BRAZILIAN EXPERIENCE (n.d.): n. pag. Web." In spite of the certainty of huge obligation in the economy due by oil stun Brazil kept up a high financial development rate and proceeded to 1981. The primary oil stun was in 1973-1974. From 1968-1973 monetary blast started by extension of Brazilian industry and expanded fare alongside import substitution. "Baer, Werner. "The Brazilian Economy: Growth and Development." N.p., n.d. Web."
In 1974 the legislature built up an arrangement of independence, its primary parts were import substitution( advancement of nearby mechanical products, steel, aluminum, petrol chemicals) to expand their own neighborhood base"*. ECONOMIC DEVELOPMENT: THE BRAZILIAN EXPERIENCE (n.d.): n. pag. Web." In spite of the certainty of huge obligation in the economy due by oil stun Brazil kept up a high financial development rate and proceeded to 1981. The primary oil stun was in 1973-1974. From 1968-1973 monetary blast started by extension of Brazilian industry and expanded fare alongside import substitution. "Baer, Werner. "The Brazilian Economy: Growth and Development." N.p., n.d. Web."
To my right i have a photograph of the economic activity in Brazil in 1977. It provides a look of where the placement of certain mines where, the resources found and the industry growth. The photo shows the growth of debt in where i discuss my period of time.
One of the resources during the revolution was coffee. It brought a period of great success to Brazil. Coffee still remains one of the main commodities in the world. After the abolition of slavery the government sponsored European immigrants which help speed up the process of urbanization and industrialization. To transfer coffee to ports Brazil’s government had made over 1,000s of miles of railroads as shown in the photo to the right you can see where the mines are. |
The economic state of Brazil in modern time:
The current state of Brazil( 2015) the budget deficit grew, Brazil's economy shrank by 3.8% which was the most in the century. Brazil’s credit rating was downgraded, consumer and business confidence levels are close to 0. In between the years 2011-2014 the monetary development found the middle value of just 2.1 percent each year. As contrasted and 4.4 percent in the 2004-2010 period. The last level of development was likewise more than Brazil's normal yearly development rate over the earlier 23 years (despite the fact that it was much lower than the pre-1980 period) "Dutt, Amitava Krishna, Franklin Serrano, and Ricardo Summa. (n.d.): n. pag. Aggregate Demand and the Slowdown of Brazilian Economic Growth from 2011 - 2014. Center for Economic and Policy Research, Aug. 2015. Web. ".
The current state of Brazil( 2015) the budget deficit grew, Brazil's economy shrank by 3.8% which was the most in the century. Brazil’s credit rating was downgraded, consumer and business confidence levels are close to 0. In between the years 2011-2014 the monetary development found the middle value of just 2.1 percent each year. As contrasted and 4.4 percent in the 2004-2010 period. The last level of development was likewise more than Brazil's normal yearly development rate over the earlier 23 years (despite the fact that it was much lower than the pre-1980 period) "Dutt, Amitava Krishna, Franklin Serrano, and Ricardo Summa. (n.d.): n. pag. Aggregate Demand and the Slowdown of Brazilian Economic Growth from 2011 - 2014. Center for Economic and Policy Research, Aug. 2015. Web. ".
Sources:
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https://books.google.com.au/books?id=qdBaM4nEefwC&pg=PA441&lpg=PA441&dq=brazil%27s+last+broad+period+of+industrialization&source=bl&ots=xeXEwqYdRD&sig=J0thUYMZUtlJ_dIpPrqerHtvndw&hl=en&sa=X&ved=0ahUKEwjao6Dzu9zMAhViFMAKHfdeBGsQ6AEIKTAC#v=onepage&q=brazil%27s%20last%20broad%20period%20of%20industrialization&f=false Baer, Werner. "The Brazilian Economy: Growth and Development." N.p., n.d. Web. http://www.colorado.edu/conflict/full_text_search/AllCRCDocs/95-1.htm Breneman, Tracy Ann. "BRAZIL'S AUTHORITARIAN EXPERIENCE: 1964-1985; A STUDY OF A CONFLICT." BRAZIL'S AUTHORITARIAN EXPERIENCE: 1964-1985; A STUDY OF A CONFLICT. Department of Sociology, n.d. Web. 22 May 2016. http://www.fgv.br/professor/fholanda/Arquivo/Economicdevelop.pdf *. ECONOMIC DEVELOPMENT: THE BRAZILIAN EXPERIENCE (n.d.): n. pag. Web. http://countrystudies.us/brazil/62.htm Brazil - The Economy - Import-Substitution Industrialization, 1945-64." Brazil - The Economy - Import-Substitution Industrialization, 1945-64. U.S. Library of Congress, n.d. Web. 22 May 2016. https://prezi.com/uv0quiyszhf8/brazil-during-the-industrial-revolution/ Bilgic, Izel. "Brazil During the Industrial Revolution." Brazil During the Industrial Revolution. N.p., 24 Nov. 2014. Web. http://www.bloomberg.com/quicktake/brazils-highs-lows iller, David. "Brazil's Highs and Lows." Bloomberg.com. David Biller, 12 May 2016. Web. https://en.m.wikipedia.org/wiki/Economic_history_of_Brazil "Economic History of Brazil." - Wikipedia, the Free Encyclopedia. N.p., n.d. Web. 22 May 2016. https://brasilvista.wordpress.com/2011/10/03/political-and-economic-policy-during-the-military-dictatorship-1964-1985/ "Political and Economic Policy during the Military Dictatorship 1964-1985." Brasil Vista New School U Student Blog. N.p., 03 Oct. 2011. Web. 22 May 2016. https://en.wikipedia.org/wiki/Joaquim_Nabuco "Joaquim Nabuco." Wikipedia. Wikimedia Foundation, n.d. Web. 22 May 2016. |