History of Brazil

The history of Brazil begins with the arrival of the first Native Americans, over 8,000 years ago, into the present territory of that nation. By the end of the 15th century, all parts of those lands were inhabited by semi-nomadic tribes, who subsisted on a combination of fishing, hunting, gathering, and agriculture.

Related Topics:
Native Americans - 15th century

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Brazil was discovered by Europeans on January 26, 1500, by Vicente Yáñez Pinzón, followed by Pedro Álvares Cabral. The first permanent Portuguese settlement—São Vicente, a coastal town just south of the Tropic of Capricorn—was founded in 1532. The Dutch also established themselves in Brazil, around the city of Recife in the northeast corner of the country, in the 1630s. The Dutch were driven out of Brazil by the Portuguese in 1654.

Related Topics:
Brazil - January 26 - 1500 - Vicente Yáñez Pinzón - Pedro Álvares Cabral - São Vicente - Tropic of Capricorn - 1532 - Dutch - 1630s - 1654

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From the 16th to the 18th centuries, Brazil was a colony of Portugal, exploited mainly for brazilwood at first, and later for sugarcane agriculture. During this period most Indians were exterminated, pushed out of the way or assimilated, and large numbers of African slaves were brought in. On September 7, 1822, the country declared its independence from Portugal and became a constitutional monarchy, the Empire of Brazil. A military coup in 1889 established a republican government. The country has been nominally a democratic republic ever since, except for three periods of overt dictatorship (1930–1934, 1937–1945, and 1964–1985).

Related Topics:
16th - 18th - Brazilwood - Sugarcane - Africa - September 7 - 1822 - Empire of Brazil - 1889 - Republic - Democratic - Dictator - 1930 - 1934 - 1937 - 1945 - 1964 - 1985

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Through most of its independent history, the country's politics were dominated by agrarian oligarchies, at all levels of government. Their influence was lessened (but by no means abolished) after the revolution of 1930, when the state began to assert itself in the economy, drawing support from the emerging industrial sector and through control of industrial worker unions. Nevertheless, in spite of all changes of regime, Brazilian politics has continued to be dominated by the same relatively small elite. This oligarchic legacy, coupled with heavy state intervention in the economy, poor infrastructure, corruption, inadequate education levels and an insular trade policy have all conspired to hamper economic growth and create one of the most unequal income distributions in the Western world.

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Thanks to vast natural resources and cheap labor, Brazil is today South America's largest economy, the world's ninth largest economy, and fifth most populous nation. In 1994 Fernando Henrique Cardoso embarked on the Real plan (a double entendre in Portuguese since "real" means both "real" and "royal") by launching a new currency, the real, and instituting a disciplined macroeconomic policy that sharply reduced inflation. The new currency, backed by sound economic policies, proved a resounding success at taming the runaway inflation which had plagued Brazil for decades. Fallout from the Asian economic crisis led to a devaluation of the currency in 1999, despite the receipt of a $41.5 billion IMF bailout. This also led to a decline in industrial capacity and an increase in the public debt (over 55% of annual GDP). Growth in real GDP remained at near-stagnation levels (2% p.a, for a demographic growth of 1.5%). The later Cardoso government was once again challenged by rising consumer inflation and interest rates, and taxation rose to a record 40% of GDP.

Related Topics:
South America - 1994 - Fernando Henrique Cardoso - Asian economic crisis - Devaluation - 1999 - IMF - Real GDP

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These socio-economic problems helped in 2003 to elect former union leader Luiz Inácio Lula da Silva, Brazil's first left-wing president, on the promise that he would put the country back on a path of economic development, while also adhering to an orthodox economic policy—and especially avoid default either on foreign or on public debt. Lula had some success in forging an assertive Brazilian foreign policy while grappling with the issues of inequality, public debt, comparatively high taxes, and the attraction of foreign investment at home. After a year and a half of office, there was a marked improvement in Brazil's current account, foreign reserves, and balance of trade, but sustained economic growth has so far failed to materialize.

Related Topics:
2003 - Luiz Inácio Lula da Silva - Current account - Foreign reserves - Balance of trade

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