Brazil Research Paper

3949 Words16 Pages
The beginning of Brazils economy started when Portugal colonized the country that is known today as Brazil. The Portuguese were in search of vast riches and they got their first taste of earnings around the 1540’s. With the popularity of sugar cane growing in Europe, the Portuguese quickly started an agricultural enterprise in their colony. The Portuguese took advantage of the Dutch through their commercial skills and financing; in order to quickly get a foothold and build a small sugar monopoly. The financing from the Dutch allowed them to set up this whole sugar cane trade remarkably fast. Allowing the Dutch to also ship the sugar back to Europe made it one less risk the Portuguese had to worry about. The trading of sugar also impacted…show more content…
Never the less, coffee was and is still today a focal point of Brazils agriculture and economy. * In 1930 the revolution abolished the Old Republic that existed from 1889 – 1930. This was a federation of semiautonomous states. In 1937 a Coup established the New State (Estado Novo), which was a dictatorship that lasted from 1937-1945. Both the Revolution and the Coup started because of economic problems that began in 1930. At this time world demand for coffee, which was one of Brazil’s major exports, declined significantly as a result of the Great Depression as well as the fact that there was an excess of coffee produced in the 20’s. This drove prices down sharply and they remained at low levels into the 1930’s. Another factor that led to the crisis was foreign debt.

During this period the government was forced to suspend part of the country’s debt payments. State programs were created to support coffee prices but finally went bankrupt in 1930. This led to the central government getting involved by buying huge amounts of coffee to avoid further decreases in prices. This intervention not only provided support for the coffee industry but eventually the rest of the country.

By the late 1930’s with the government interference in coffee production, the economy was ready to grow, however, WW II got in the way. Although output increased through better utilization of existing capacity, there was little industrial and infrastructure investment, except for

More about Brazil Research Paper

Get Access