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Slow TransitionEconomic 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.”
Shifts of PowerCivil dictatorship(1937-45)
Populist democratic (1946-64)
Military dictatorship(1964-85)
1930’sRadical shift from local-oligarchic to national-
populists politicsPresident Getulio Vargas comes to power and
starts the “developementalist model” of policy making
Facilitated economic growth by industrial production boosted by import substitution
Political use of Economic Policy
Three major Policy Mechanisms• Monetary correction
• Small exchange rate devaluations
• Tax exemptions
Transition to DemocracyDirect elections of state governorsAdoption of a new constitution in 1988Hyperinflation
Fernando CardosoFernando Cardoso becomes Minister of
Finance
Produces Plano Real which stabilizes the economy and lowers the annual inflation from 700+% to 6%.
Entering The World Economy with CardosoGoals:
Come out as a clean world player without corruption
Attract foreign capitalRemain economically stable
Effects of liberalizing Brazil’s Market in the 1990’sCountry’s industries destroyedShrinking public sector
Fall in public servicesIncreased povertySocial inequality
During this time mortality rates did not increase and were pretty low, literacy rates remained low
EducationQuality of education is poor, students stay in
school, but do not develop strong skills in public education at the primary level
Job Market with Liberalised EconomyJob instabilityDecreased amount of jobs in industrial sector
and agricultural sectorAbout 50% population do not have social
security
Colonial LegacyStill inequalities between African
descendants and European descendants
Unequal educational opportunities
Inequalities in the labor market
Prejudice anddiscrimination
Unequal Land distributionBrazilians of African descent have not been
given land since the liberalisation of the economy in the 1990s
A cause for the income gapPoverty and unemployment
Land SeizuresLand 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.
Social Development in 21st CenturyUN placed Brazil at the 73rd place Low infant mortality and literacyBad income distribution (Schwartzman)
GlobalizationGlobalization has been able to combat the
racial inequalities through the exchange of ideas
Brazilian OilNew 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.
SourcesCastro, 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>.