Brazil during the Great Depression

Effects

Impact

• Local shop owners reported a 40% decline in sales in December 1929
• Foreign debts had increased to $1181 million, 3/4 of which was owed directly by the government.
• Approximately 1 million people suffered directly from the state of the economy, many of which were farm labourers that farmers couldn't afford.
• There a 7% decrease in industrial production.

Bibliography

• The lower class of the city areas of Brazil were largely helped by labour laws put in place during the Depression.
• A minimum wage was put in place and the work day was limited to 8 hours.
• Women- In industrial level jobs women were required to be given maternity leave for the first time. Women also gained suffrage in 1932.
• Although this was great for industrial workers in the cities, the large amount of people who worked as farm labourer were still left without rights in the workplace.
• The media was controlled by Vargas, many people were jailed for dissent against the government.

• History of the Americas 1880-1981 Course Companion
• Import Substitution Industrialization Packet
• http://countrystudies.us/brazil/

The effects of the great depression in Brazil impacted people of all classes and was very widespread. Many of the industries were hurt by the loss of the largest part of the economy.

Responses

Cure

Causes

• Exports- Brazil relied heavily, almost solely, on coffee exports for thier economy, during the 1920's coffee exports are 70% of the economy. In May 1929, prices dropped, taking away the main part of the income of the people. Prices dropped from 22 cents/lb to 15 cents/lb. (economic)
• Valorization- programs to control the price of coffee failed, leading to an even larger supply and flooding the market even more (political)
• Imports- Brazil imported most manufacured goods, with a very small, local industrial base, despite the best efforts of programs to build it up. All of these imports also lead to massive debts, as much as $900 million in foreign debts right before the depression (economic)

• The Brazilian government was largely democratic much like the US, but in 1930 Getúlio Vargas took power after a series of revolts.
• The government implemented the decrease of coffee trees and burning of excess coffee to decrease supply and dependence on the crop.
• Farmers were encouraged to diversify crops by planting other plants, such as cotton. Cotton exports increased from 2% in the 1920's to 18% in the 1930's.
• Moves were made to increase local production providing tax exemptions to investors.
• Imports were also decreased to decrease foreign dependence. Imports fell by 75% between 1929 and 1932.

• WWII- War is what caused the biggest growth in the Brazilian economy. Steel was in high demand and the first, large steel plant was built in Brazil
• Diversification- In agriculture, the crops that had previously sustained the country were largely replaced with other plants to decrease dependency. Local industry was also grown with a decreased dependency on foreign imports.

Brazil during the Great Depression

Samantha Abolos