Getulio Vargas

1. Getulio Vargas Brazil

2. Background WWI inflation eroded worker’s wages  trade union movement 1917 – a general strike in Sao Paulo, organized by women weavers who demanded 20% wage increase and more respect from male supervisors. - While they won some concessions, the labor movement was mainly foreign-born workers who were weak and not connected to the peasantry (majority of the population)

3. Background In Rio de Janeiro and Sao Paulo they lived in the slums (favelas or morros) and created the Samba: song and dance that drew from Angolan and Congolese traditions Samba was associated with the celebration of carnival, a popular street festival preceded Lent, creating a safe place for lower class to challenge and mock the upper class. Upper class shocked by their wild sexuality and defiant behavior.

4. The Samba

5. The Samba Samba lyrics raised social and political issues with clever word play, double entendre and the juxtaposition of contrasting images to scorn the arrogant power of the upper classes. Radio created mass appeal of samba, changing what it meant to be “Brazilian” challenging the light-skinned Eurocentric plantation elites…

6. Industrialization/Urbanization Industrialization further weakened neocolonial order, which was based on agriculture and dependence on foreign markets/loans Brazilian competition grew…but was not supported by a government dominated by wealthy coffee interests Exports: Coffee, sugar and cotton…food neglected, had to import 4/5 of its grain

7. Background 1920 – average industrial worker in Sao Paulo earned 60 cents a day (women made only 60% of what men made) Malnutrition, parasitic diseases and lack of hospitals limited their life span (28 years old) 64% of those over 15 yrs were illiterate…literacy was a requirement for voting Societal changes fell to the middle class, who were not happy with the rule of the corrupt oligarchies

8. 1922-1922 Intellectuals create: Modern Art Week, where they defy traditional Eurocentric work to focus on indigenous Brazilian culture…to become “cultural cannibals” by mixing foreign ideas with Brazilian March 1922 Marxist groups emerge in the cities and the Brazilian Communist party was formed July – junior officers(Tenentes) at a garrison in Rio de Janeiro rebelled over the election of Arturda Silva Bernardes, and denounced the control of the coffee oligarchy who were corrupt and used electoral fraud

9. Background Questions How do these events show us that Brazil is ready for a change? How can populists take advantage of this situation? If the rural coffee oligarchy has control over Brazil, what group of people (who have the means to) will now rise up against them for control? (think of industrialization…)

10. The officers revolt (1924) This signaled the beginning of a struggle by the Brazilian bourgeoisie to take over power Bernardes takes office, but coffee over-production and falling prices cause economic problems and lead to another revolt in Sao Paulo Tenentes march through rural Brazil in hopes of enlisting the peasantry into their struggle, but the peasants had other concerns. This is the 1st time many middle class soldiers see the peasants plight Now they want economic and social reforms

11. This rebellion was better prepared than the one in 1922. However, they were forced out of Sao Paulo by government forces and were joined by others in the interior. Their march was led by Luis Carlos Prestes. They became known as the “Prestes Column” and covered 25,000 Kilometers. They finally sought refuge in Bolivia in 1927. Tenentes March 1924

12. Others began to practice • People began practicing candomble, a popular religion that went back to their African past and created a spiritual community of resistance to white supremacist policies Marcus Garvey Black Brazilians joined Marcus Garvey’s black power movement, prompting the government to ask for help from the FBI to disrupt their activities

13. More Coffee problems Bernardes survived, the turmoil and turned to valorization(gov. helps maintain the value of a product by buying it at a fixed price or giving special loans) of coffee. Sao Paulo created the Coffee Institute, which stored excess coffee to bring the price up…but eventually so do other competitors Then the Great Depression hit and they could not afford to keep up the valorization program

14. 1930 Election A rift occurred between the Coffee Oligarchy and the bourgeois groups The Liberal Alliance formed, linking urban groups, great landowners (from Rio Grande Sul who resented Sao Paulo’s dominance) and disaffected politicians. They chose Getulio Vargas (a wealthy rancher) as their candidate Many workers sympathized with the Liberal Alliance and pressured Vargas to improve working conditions, establish a minimum wage, vacations, organize consumer cooperatives and regulate labor relations

15. 13 Principles of Berta Lutz Woman Activist women’s suffrage civil equality equal pay for work paid maternity leave affirmative action in government employment minimum wage the eight hour day paid vacations Medical, disability and retirement insurance - All were incorporated in the 1934 constitution-

16. 1930 Election The Tenentes of 1924 were his most ardent supporters, however their former leader, Prestes, became a Marxist and would not support Vargas Marxists began preaching about the struggle against American imperialism Prestes would soon become the leader of the Brazilian Communist Party

17. 1930 Election Vargas focused on the need to develop industry, advocated high tariffs to protect Brazilian industry, using local raw materials and called on Brazilians to “perfect our manufactures to the point where it will become unpatriotic to feed or clothe ourselves with imported goods.” He promoted social welfare and political, economic and judicial reforms

18. 1930 election Cautiously pledged to the slow extinction of the latifundio (large & politically powerful estates) without violence, and supported the organization of small landed property through transfer of small parcels of land to agricultural laborers. ( LAND REFORM) Coffee Oligarchs tried to deny him the presidency, he overthrew their government…Coffee Power is dead, thus begins “The era of the Bourgeois Revolution”

19. Questions What events led to the demise of the Coffee Oligarchs? What groups of people began to unite to support Vargas? What did Vargas promise the people? Why do you think after all of this time (1880-1930) the Coffee Oligarchy finally lost control? How does Vargas fit into the general characteristics of a populist?

20. Vargas and the Bourgeois Revolution, 1930-1945

21. Vargas’s coalition - Bourgeois groups who favored industrialization and modernization of economic, political and social structures - Conservatives who joined out of jealously of the Sao Paulo influence, but feared radical changes - Intellectuals & Tenentes who wanted agrarian reform, cooperatives, and nationalization of mines - Women’s groups - Brazilian Black Front (FNB) organized protests and demanded equality and representation in Congress

22. Foreign aspects… Besides his supporters at home, he had to consider the $ interests of foreign countries, although weakened by the Great Depression, they were still capable of applying pressure on the Brazilian economy This strange dichotomy (two distinct halves that are contradictory or opposed) helps to explain his abrupt shifts in course during his political career. What do you already know about Vargas’s political career? What should you be looking for as we continue?

23. Economics • Biggest problem…Great Depression. • He does not abandon Coffee, he attempts valorization by: restricting the plantings, the purchase of surplus stocks, and burning the surplus of coffee (blasphemy) • Vargas had more success diversifying agriculture: • WWII  increase in cotton

24. Industrialization The key to recovery was in industrialization, which allowed Brazil to substitute imports for home made goods Vargas encouraged industrialization through trade controls, import quotas, tax incentives, lowered duties on imported machinery and raw materials and long-term loans at low interest rates. Production doubled from 1931 to 1936. 1933 Brazil’s national income began to increase (Economy didn’t depend on external factors, but on internal ones)

25. Political Measures • Vargas tried to centralize political power by making strategic concessions to his various supporters • Sao Paulo – appeased with conservative ministerial appointments • 1932 a general strike breaks out (organized by the ladies) and Vargas is forced to intervene and aggress to most of their demands: future problems are to be negotiated by a commission of workers, employers and government • Bourgeois – 1932 he called for the secrete ballot, lowered the voting age to 18, extended the vote to working women (illiterates still denied)…95% still unable to vote…YET it allowed women to get elected in 18 of 20 state legislatures

26. Political Measures Rio de Janeiro appointed women to the cabinets of Labor and Education A new constitution was drafted and enacted in 1934, strengthening the executive powers. The assembly elected Vargas for a term extending to 1938. (so…what just happened? Explain in your own words)

27. Political Measures • Article 119 of the new constitution called for the nationalization of mines, mineral deposits, waterfalls and other sources of energy • Labor – Vargas felt government protection was important: • government tribunal (worker, boss, gov.) gave the government power to fix a minimum wage • guarantee the right to strike. • Set 8 hour work day • Social security system: pension, vacations, safety and health standards employment security

28. Political Measures LABOR Gained a lot of support from the government LOST their freedom of action: unions became part of the ministry of Labor, NO longer independent from the government Workers had no voice in drafting labor legislation Police brutally suppressed strikes not sanctioned by the government Labor legislation was unevenly enforced and did not apply to agricultural workers (85% of work force)

29. Political amnesia… Vargas did not touch the patrimonial system of work in the countryside. Vargas did nothing to breakup the latifundio power…no land reform This rightward shift alienated tenentes, intellectuals, and communists. Prestes(leader of comm.) advocated the end of the latifundio, nationalization of large foreign companies and cancelling payment of debts to imperialists…

30. Vargas and opposition… • He harassed the leftists, in 1935 he banned the ANL (National Liberation Alliance) and ordered the arrest of many leftist leaders • The Communists began an armed uprising in November…it is quickly crushed by the government and followed by savage repression: • 15,000 arrests  leaders were captured, tortured and sentenced to many years in prison • Communist Party is banned and goes underground for a decade

31. Vargas the Dictator November 10th , the 1938 elections are cancelled due to a “state of emergency” as a result of the uprisings Vargas dissolves Congress for its inadequacy and assumed dictatorial power under a new constitution modeled on European fascist regimes

32. Vargas the Dictator December 2, all political parties are abolished Estado Novo (New State) is established, copying fascist constitutions and repressive tactics. Press was censored Prisons filled up with teachers, workers and military officers suspected of subversion Special Police set up to hunt down and torture dissidents Pushed for women to return to the patriarchal structure of the family, leave jobs to men Tax code punished single mothers and married couples without children

33. Vargas Dictator • Brazil was increasingly developing closer ties to Italy and Germany • Germany was the main market for Brazilian cotton • Germany 2nd largest buyer of Brazilian coffee & cacao • German Bank for South America opened 300 branches in Brazil Vargas did not support their expansionist goals, he only supported new markets for Brazil to gain the upper hand with the US. Estado Novo still strove for economic independence and modernization

34. Estado Novo - Industry State intervened more actively to encourage economic growth Went against Laissez Faire, instead focused on planning and direct investment to create important industrial complexes in mining, oil, steel, electric power and chemicals 1940 – Created 1st 5 year plan, goal was to expand heavy industry, create new sources of hydroelectric power and railroad

35. Estado Novo 1942 – Vargas creates Companhia Vale do Rio Doce to exploit the rich iron-ore deposits 1944 created a company for production of materials needed by a chemical industry 1946 creates the National Motor Company, producing trucks 1946 creates the National Steel Company, producing at the Volta Reponda plant

36. Industry 1920 – Brazil had 13,336 factories employing 300,000 workers 1941 – Brazil had 44,100 factories employing 944,000 workers Vargas made no effort to check the foreign capital because he believed that the growth of Brazilian state and private capitalism would keep the foreign sector in subordinate status.

37. Estado Novo and Labor He banned strikes and lock outs, but retained the protective social and labor legislation 1942 – labor laws consolidated into a labor Code, which was ahead of its time, but not strongly enforced and did not help agricultural workers WWII accelerated economic growth, Brazil exported vast amounts of food and raw materials and stored up foreign exchange reserves (the foreign comp. could not pay right away) 1945 – $707 million

38. Vargas the exploiter Vargas played Great Power rivalries against each other to secure financial and technical assistance from the US to build the Volta Redonda steel plant (Good Neighbor Policy) US was slow to move, except when Vargas stated he would have to turn to Hitler for help, then all obstacles were gone. Vargas allowed the US to lease air bases in northern Brazil.

39. WWII & Estado Novo The fight against fascist Europe and the reality of fascist Estado Novo were very apparent and as the war came to an end, calls for the end of the EN grew louder. Women and African-Brazilians continued to organize for rights, many expressed in protest in sambas, secret organizations, spreading absenteeism, and personal appeals to Vargas

40. We’re not gonna take it! Frustrations boiled over in February 1945 Hundresd of protestors rioted Summer, 1945- Women organized thousands in a strike, destabilizing Brazilian industry and threatening Vargas’s regime Vargas, apt at reading the signs of the times, declared amnesty for political prisoners and allowed political parties to function openly…New elections were set for Dec. 2nd

41. A Military Coup Vargas announced he would not run for reelection, but his supporters, queremistas, created a well-organized campaign to try to get him back Soon after issuing political freedom, Vargas declared himself the “father of the poor” and authorized the expropriation of any organization whose actions were harmful to the national interest

42. Military Coup The “authorization decree” was meant to keep the cost of living down, but alarmed foreign and domestic conservatives. Senior military saw Vargas’s swing to the left as a threat Brazil’s alliance with the US (Good Neighbor) had strengthened their belief in free enterprise and Cold War politics turned them against world communism

43. October 29th 1945 Generals Monteiro and Dutra staged a coup, forced Vargas to resign, repealed his “authorization decree” and repressed the communist party. • Refused to expand the vote to illiterates and organized elections that guaranteed Dutra’s victory as president (1946-51) • Neocolonial interests gain power they had lost under Vargas

44. Military Coup President Dutra showed blind loyalty to anti-communist policies 1945 communist party polled 500,000 votes and Brazilian Women’s Federation (leading feminist organization) joined the communist Women’s International Democratic Federation…which alarmed Dutra, who then outlawed it and expelled their elected representatives from congress

45. Dutra’s witch-hunt He declared the Worker’s Federation illegal Government intervened in a large number of unions to eliminate “extremist elements” A wage freeze and failure to raise minimum wage caused real income of workers to decline

46. Dutra Dutra pursued a laissez-faire policy that meant the virtual abandonment of the Vargas strategy of a state-directed movement toward economic independence Foreign $ flowed into Brazil, and on advice from US, pursued a restrictive credit policy harmful to Brazilian businessmen and industrial growth People still organized: Afro-Brazilians created National Black Convention & Black Women’s National Congress to expose hypocrisy of “racial democracy”  antidiscrimination law: AfonsoArinos Act

47. Vargas Returns 1950, Vargas was assured of military neutrality and drew upon support from workers, industrialists and members of the urban middle class. Campaign concentrated on the need to accelerate industrialization and expand/strengthen social welfare legislation People were so frustrated with Dutra, Vargas easily won

48. Vargas Returns He inherited a bad economy, after a short coffee boom, inflation reared its head His state-directed industrialization using state corporations as his major instrument  increased hostility from neocolonial interests at home and abroad. Eisenhower decided Vargas had not created the proper climate for private investment and ended the US-Brazilian Economic Commission

49. Vargas Returns His programs faced sabotage from the state governments and Congress that was dominated by rural interests This showed Vargas’s ability to maneuver different social groups had greatly diminished He continued his populist program: created a mixed public-private petroleum corporation (Petrobras), giving the state a monopoly on oil drilling and refineries

50. Vargas Returns Vargas believed the state must own/control the economy and reduce the balance-of-payments deficit by substituting domestic sources of oil for imported oil. Vargas appeased domestic and foreign foes by leaving the distribution of oil in private hands and allowing existing refineries to remain privately owned.