The Brazilian Economoy Uprising Story Essay

The Brazilian Economoy Uprising Story Essay

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First, before one can figure out the reason for Brazil’s growth one has to look into the past to see where the country was to be able to see how it got to where it is today. The Brazilian economy has been at a constant state of change, from the time of colonization in the 16th century to today. In the 16th century, Brazil had an imperial mercantile economy, and then in the 1930s Brazil began modernizing its industry to match the industrial economies of the time. Following the World War II the country as a whole began shifting, before the war about a third of the population lived in the metropolitan areas but as early as 1990s over 70% of the people live in the urban setting (Watkins). With the movement to the cities, the nation’s industrial sector grew 40% in GNP, with domestic and exportable products being created.
Around the 1930s, Brazil and Latin American began following the process of Import Substitution Industrialization, which lasted until the end of the 1980s. The ISI policies devaluated the currency in order to boost exports and discourage imports, followed by adopting different exchange rates for goods (Watkins). ISI in Brazil had an interesting effect; it created a three-prong system of governmental, private, and foreign capital being directed at the infrastructure and heavy industry, manufacturing, and the production of durable goods. The program worked at first, but then became a serious economic problem. When the 1980s came around Brazil realized that ISI policies lead to inefficient industries because of their lack of exposure to international competition, the policies ignored the rural sector, and finally limiting the local producers. Following the end of the ISI policies, Brazil went through many plans to correc...


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...ct. 2010. Web. 11 March 2014. 130329523/how-fake-money-saved-brazil>.
Smale, Will. "Brazil's Economy Marching to Samba Beat." BBC News. BBC, 01 Aug. 2012.
Web. 11 March 2014. .
"Trade Policy in Brazil." The Economist Intelligence Unit (2011): 1-15. Web.
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Watkins, Thayer. "The Economic History of Brazil." The Economic History of Brazil. San Jose
State University, 17 Oct. 2000. Web. 11 March 2014.
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"World Economic Outlook Database October 2012." World Economic Outlook Database.
International Monetary Fund, n.d. Web. 11 March 2014.
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