Daniel E. Goldfarb

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.”

Shifts of Power Civil dictatorship( ) Populist democratic ( ) Military dictatorship( )

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

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

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

Fernando Cardoso Fernando 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 Cardoso Goals: Come out as a clean world player without corruption Attract foreign capital Remain economically stable

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

Education Quality 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 Economy Job instability Decreased amount of jobs in industrial sector and agricultural sector About 50% population do not have social security

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

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

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.

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

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

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.

Sources Castro, Marco. "Globalization and Recent Political Transitions In Brazil." International Political Science Review 24.4 (2003): Web. 3 Feb Gibb, Tom. "Brazil's 'Africans' seek equality." BBC News. 28 Aug BBC, Web. 11 Feb Journal of Black Studies, Vol. 34, No. 6, African Descendants in Brazil (Jul., 2004), pp Schwartzman, Simon. "Globalization, poverty, and social inequity in Brazil." Feb IETS, Web. 11 Feb