BrazilDaniel E. Goldfarb

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>.