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Brazil

Brazil. Daniel E. Goldfarb. Slow Transition. Economic Globalization began after the cold war with more liberalized markets.

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Brazil

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  1. Brazil Daniel E. Goldfarb

  2. Slow Transition • Economic Globalization began after the cold war with more liberalized markets. • “The sluggishness of the Brazilian reaction to globalization has been largely attributed to the “stickiness” of existing state structures and the historically embedded ideas and practices in the policy-making process.”

  3. Shifts of Power • Civil dictatorship(1937-45) • Populist democratic (1946-64) • Military dictatorship(1964-85)

  4. 1930’s • Radical shift from local-oligarchic to national-populists politics • President Getulio Vargas comes to power and starts the “developementalist model” of policy making • Facilitated economic growth by industrial production boosted by import substitution

  5. Political use of Economic Policy • Three major Policy Mechanisms • Monetary correction • Small exchange rate devaluations • Tax exemptions

  6. Transition to Democracy • Direct elections of state governors • Adoption of a new constitution in 1988 • Hyperinflation

  7. Fernando Cardoso • Fernando Cardoso becomes Minister of Finance • Produces Plano Real which stabilizes the economy and lowers the annual inflation from 700+% to 6%.

  8. Entering The World Economy with Cardoso • Goals: • Come out as a clean world player without corruption • Attract foreign capital • Remain economically stable

  9. Effects of liberalizing Brazil’s Market in the 1990’s • Country’s industries destroyed • Shrinking public sector • Fall in public services • Increased poverty • Social inequality • During this time mortality rates did not increase and were pretty low, literacy rates remained low

  10. Education • Quality of education is poor, students stay in school, but do not develop strong skills in public education at the primary level

  11. Job Market with Liberalised Economy • Job instability • Decreased amount of jobs in industrial sector and agricultural sector • About 50% population do not have social security

  12. Colonial Legacy • Still inequalities between African descendants and European descendants • Unequal educational opportunities • Inequalities in the labor market • Prejudice anddiscrimination

  13. Unequal Land distribution • Brazilians of African descent have not been given land since the liberalisation of the economy in the 1990s • A cause for the income gap • Poverty and unemployment

  14. Land Seizures • Land ownership has not been recorded, so ownership of land is determined by who has power in the region. • Also many farmers just take land which has lead to deforestation. • There is not enforcement and those who have money and guns are in control.

  15. Social Development in 21st Century • UN placed Brazil at the 73rd place • Low infant mortality and literacy • Bad income distribution (Schwartzman)

  16. Globalization • Globalization has been able to combat the racial inequalities through the exchange of ideas

  17. Brazilian Oil • New Oil discoveries ahs made Brazil the most oil abundant country in South America • Little to no competition with existing oil producing nations in South America. • “oil curse” will probably not occur.

  18. Sources • Castro, Marco. "Globalization and Recent Political Transitions In Brazil." International Political Science Review 24.4 (2003): 465-490. Web. 3 Feb 2010. <http://www.jstor.org/stable/1601633?cookieSet=1>. • Gibb, Tom. "Brazil's 'Africans' seek equality." BBC News. 28 Aug 2001. BBC, Web. 11 Feb 2010. <http://news.bbc.co.uk/2/hi/americas/1513246.stm>. • Journal of Black Studies, Vol. 34, No. 6, African Descendants in Brazil (Jul., 2004), pp. 766-786 • Schwartzman, Simon. "Globalization, poverty, and social inequity in Brazil." Feb 2003. IETS, Web. 11 Feb 2010. <http://www.schwartzman.org.br/simon/pdf/globalization.pdf>.

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