Brazilian Economies
A short history of commerce and development in Brazil.
Early Colonial Economies of Brazil
When Portuguese explorers first reached what is now Brazil in 1500, they found a rich land primarily used for subsistence lifestyles. Abundant fish, fruit, game, and soil meant the cultures living there had little need to form extensive trade networks or civilizations. The Portuguese, meanwhile, were representatives of a growing colonial empire hungry for raw resources and labor. They claimed ownership of this faraway land based on a prior agreement with Spain, the Treaty of Tordesillas, which divided the New World by longitude. The indigenous people of Brazil had little to no say in the matter; most of those who survived the first wave of disease faced the choice to accept slavery, intermarry, fight, or run.
For the next few years, Portuguese colonists established port towns and trading posts along the coast of Brazil. Authority gradually shifted to the Portuguese monarchy, which found a valuable resource in the red-hued brazilwood tree. Land began to pass into individual hands, leading to vast estates that would support the later upper classes of Brazil. To build and staff these estates, landowners imported African slaves in increasing numbers. These policies all ensured a steady supply of exports to the markets of Europe.
Sugar, Gold, Gems, and Cattle
After this initial period of colonization, Portuguese Brazil’s economy grew, expanded, and navigated the perilous climate of European colonialism. Competing interests from France and the Netherlands proved to be a physical threat to the colony on several occasions. Meanwhile, whole communities of escaped slaves, free Amerindians, and colonial outcasts formed on the outskirts of society. Brazilwood harvesting was followed by a boom in sugar plantations and cattle ranching. By the mid 17th century, however, Portugal had lost its near-monopoly over sugar through competition from plantations in the Caribbean. This pushed the colony to explore further inland, where it found large deposits of valuable metals like gold and silver as well as precious gems. These resources powered the colonial economy into an era of abolished slavery and independence.
The Coffee Boom in Brazil
Independent Brazil faced a new series of challenges. Instead of receiving support from a larger empire in exchange for raw resources, the monarchy needed to build its own economy and provide for its citizens. While dozens of industries developed, coffee came to be the major export of Brazil in the 19th century. Many of the leading figures of Brazil at this time were coffee plantation owners, who formed powerful oligarchies. Former slaves and immigrants from around the world found work on their plantations.
The ripples of the Great Depression sent coffee markets and Brazil’s larger economy into crisis during the 1930s. This in turn led to political instability and a number of both successful and unsuccessful coup d’etats. The end result was a liberal revolution, which supported greater industrialization and rights for the lower and middle classes. Despite these gains, growth remained uneven, often divided along racial and geographic lines.
Modern Economics of Brazil
After supporting the Allies in World War II, Brazil entered a period of political turmoil, booming development, and periodic recession. Its government swung between military dictatorship and democracy, which also destabilized its economic policies. Nonetheless, modernization continued, and the nation’s economy grew more complex and productive. An inflation crisis in the 1980s triggered several failed stabilization plans like the Plano Cruzado and the more successful Plano Real in 1994.
Since that time, the country has worked to balance its growth with concerns over wealth inequality, public corruption, and infrastructure challenges. Today, Brazil represents the eighth-largest economy in the world. Among its major industries today are textiles, industrial manufacturing, mining, and lumber. Widespread poverty is still present in Brazil, most apparent in the favela shantytowns built around the outskirts of large cities.
References
Amann, Edmund, Carlos Azzoni, and Werner Baer, eds. The Oxford Handbook of the Brazilian Economy. Oxford University Press. 2018.
Fausto, Boris. A Concise History of Brazil. Cambridge University Press. 2014.
MacLachlan, Colin. A History of Modern Brazil: The Past Against the Future. Rowman & Littlefield. 2003.
Meade, Teresa. A Brief History of Brazil. Infobase Publishing. 2014.
“The World Factbook: Brazil.” Central Intelligence Agency, Central Intelligence Agency, 1 Feb. 2018, www.cia.gov/-library/publications/the-world-factbook/geos/br.html.
Vincent, Jon S. and George Woodyard. Culture and Customs of Brazil. Greenwood Publishing Group. 2003.
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