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Brazil-The Military Republic, 1964-85





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The military held power from 1964 until March 1985 not by design but because of political struggles within the new regime. Just as the regime changes of 1889, 1930, and 1945 unleashed competing political forces and caused splits in the military, so too did the regime change of 1964. Because no civilian politician was acceptable to all the revolutionary factions, the army chief of staff, Marshal Humberto Castelo Branco (president, 1964-67), became president with the intention of overseeing a reform of the political-economic system. He refused to stay beyond the term of deposed João Goulart or to institutionalize the military in power. However, competing demands radicalized the situation; military hard-liners wanted a complete purge of left-wing and populist influences, while civilian politicians obstructed Castelo Branco's reforms. The latter accused him of dictatorial methods, and the former criticized him for not going far enough. To satisfy the military hard-liners, he recessed and purged Congress, removed objectionable state governors, and decreed expansion of the president's (and thereby the military's) arbitrary powers at the expense of the legislature and judiciary. His gamble succeeded in curbing the populist left but provided the successor governments of Marshal Artur da Costa e Silva (1967-69) and General Emílio Garrastazú Médici (1969-74) with a basis for authoritarian rule. Anti-Goulart politicians understood too late the forces they had helped unleash.

Castelo Branco tried to maintain a degree of democracy. His economic reforms prepared the way for the Brazilian economic "miracle" of the next decade, and his restructuring of the party system that had existed since 1945 shaped the contours of government-opposition relations for the next two decades. He preserved presidential supremacy over the military and kept potential coup-makers in check, but in the process he had to expand presidential powers in the infamous Second Institutional Act of October 1965, and he had to accept the succession of Minister of Army Costa e Silva.

As in earlier regime changes, the armed forces' officer corps was divided between those who believed that they should confine themselves to their professional duties and the hard-liners who regarded politicians as scoundrels ready to betray Brazil to communism or some other menace. The victory of the hard-liners dragged Brazil into what political scientist Juan J. Linz called "an authoritarian situation." However, because the hard-liners could not ignore the counterweight opinions of their colleagues or the resistance of society, they were unable to institutionalize their agenda politically. In addition, they did not attempt to eliminate the trappings of liberal constitutionalism because they feared disapproval of international opinion and damage to the alliance with the United States. As the citadel of anticommunism, the United States provided the ideology that the authoritarians used to justify their hold on power. But Washington also preached liberal democracy, which forced the authoritarians to assume the contradictory position of defending democracy by destroying it. Their concern for appearances caused them to abstain from personalist dictatorship by requiring each successive general-president to pass power to his replacement.

The role of the United States in these events was complex and at times contradictory. An anti-Goulart press campaign was conducted throughout 1963, and in 1964 the Johnson administration gave moral support to the campaign. Ambassador Lincoln Gordon later admitted that the embassy had given money to anti-Goulart candidates in the 1962 municipal elections and had encouraged the plotters; that many extra United States military and intelligence personnel were operating in Brazil; and that four United States Navy oil tankers and the carrier Forrestal , in an operation code-named Brother Sam, had stood off the coast in case of need during the 1964 coup. Washington immediately recognized the new government in 1964 and joined the chorus chanting that the coup d'état of the "democratic forces" had staved off the hand of international communism. In retrospect, it appears that the only foreign hand involved was Washington's, although the United States was not the principal actor in these events. Indeed, the hard-liners in the Brazilian military pressured Costa e Silva into promulgating the Fifth Institutional Act on December 13, 1968. This act gave the president dictatorial powers, dissolved Congress and state legislatures, suspended the constitution, and imposed censorship.

In October 1969, when President Costa e Silva died unexpectedly, the democratic mask fell off as the officer corps of the three services consulted among themselves to pick General Garrastazú Médici for the presidency. Costa e Silva and Médici represented the hard-line, antipolitics segment of the military, which seemingly was content to hold authority as long as necessary to turn Brazil into a great power. The Médici government illustrated how it was possible to remain in power without popular support, without a political party, and without a well-defined program. It was the era of terrorist actions in the cities, replete with kidnappings of diplomats, including the United States ambassador, and an extensive antiguerrilla campaign in northern Goiás. The repressive apparatus expanded into various agencies, which spied on political opponents and engaged in dirty tricks, torture, and "disappearings" (see The Military Role in the Intelligence Services, ch. 5). Those operations caused an open break between the government and the hierarchy of the Roman Catholic Church for the first time in Brazilian history. They also produced a deterioration in relations with the United States, whose leaders had expected the Castelo Branco vision of the revolution to win out.

The Médici administration wrapped itself in the green and gold flag when Brazil won the World Cup in soccer in 1970, began to build the Trans-Amazonian Highway through the northern rain forests, and dammed the Rio Paraná, creating the world's largest hydroelectric dam at Itaipu. From 1968 to 1974, parallel with the darkest days of the dictatorship, the military-civil technocratic alliance took shape as the economy boomed, reaching annual GDP growth rates of 12 percent. It looked as if Brazil's dreams of full industrialization and great-power status were possible. Sadly, in those years of the supposed "economic miracles," criticism and labor unrest were suppressed with arrests, torture, and censorship. Moreover, this apparent success of mixing authoritarian rule and economic growth encouraged officers in Argentina, Chile, Bolivia, and Uruguay to seize power in their countries.

It was in this atmosphere that retired General Ernesto Geisel (1974-79) came to the presidency with Médici's approval. There had been intense behind-the-scenes maneuvering by the hard-liners against him and by the more moderate supporters of Castelo Branco for him. Fortunately for Geisel, his brother, Orlando Geisel, was the minister of army, and his close ally, General João Baptista de Oliveira Figueiredo, was chief of Médici's military staff.

Although not immediately understood by civilians, Ernesto Geisel's accession signaled a move away from repression toward democratic rule. Geisel replaced several regional commanders with trusted officers and labeled his political program distensão , meaning a gradual relaxation of authoritarian rule. It would be, in his words, "the maximum of development possible with the minimum of indispensable security."

President Geisel sought to maintain high economic growth rates, even while seeking to deal with the effects of the oil shocks. He kept up massive investments in infrastructure--highways, telecommunications, hydroelectric dams, mineral extraction, factories, and atomic energy. Fending off nationalist objections, he opened Brazil to oil prospecting by foreign firms for the first time since the early 1950s. His government borrowed billions of dollars to see Brazil through the oil crisis.

Brazil shifted its foreign policy to meet its economic needs. "Responsible pragmatism" replaced strict alignment with the United States and a worldview based on ideological frontiers and blocs of nations. Because Brazil was 80 percent dependent on imported oil, Geisel shifted the country from a pro-Israeli stance to closer ties with oil-rich Saudi Arabia and Iraq. His government also recognized China, Angola, and Mozambique and moved closer to Spanish America, Europe, and Japan. The 1975 agreement with the Federal Republic of Germany (West Germany) to build nuclear reactors produced confrontation with the Carter administration, which was also scolding the Geisel government for the human rights abuses that it was fighting to stop. Frustrated with what he saw as United States highhandedness and lack of understanding, Geisel renounced the military alliance with the United States in April 1977.

In 1977 and 1978, the succession issue caused further confrontations with the hard-liners. Noting that Brazil was only a "relative democracy," Geisel attempted in April 1977 to restrain the growing strength of the opposition parties by creating an electoral college that would approve his selected replacement. In October he dismissed the far-right minister of army, General Sylvio Cueto Coelho da Frota. In 1978 Geisel maneuvered through the first labor strikes since 1964 and through the repeated electoral victories of the opposition Brazilian Democratic Movement (Movimento Democrático Brasileiro--MDB). He allowed the return of exiles, restored habeas corpus, repealed the extraordinary powers decreed by the Fifth Institutional Act, and imposed General João Figueiredo (1979-85) as his successor in March 1979.

The last military president, João Figueiredo, said that he took over the presidency more out of a sense of duty than political ambition. He signed a general amnesty into law and turned Geisel's distensão into a gradual abertura (the opening of the political system), saying that his goal was "to make this country a democracy." The hard-liners reacted to the opening with a series of terrorist bombings. An April 1981 bombing incident confirmed direct military involvement in terrorism, but Figueiredo proved too weak to punish the guilty. The incident and the regime's inaction strengthened the public's resolve to end military rule. Moreover, Figueiredo faced other significant problems, such as soaring inflation, declining productivity, and a mounting foreign debt.

Political liberalization and the declining world economy contributed to Brazil's economic and social problems. In 1978 and 1980, huge strikes took place in the industrial ring around São Paulo. Protesters asserted that wage increases indexed to the inflation rate were far below a livable level. Union leaders, including the future 1990 presidential candidate Luis "Lula" Inácio da Silva, were arrested for violation of national security laws. The IMF imposed a painful austerity program on Brazil. Under that program, Brazil was required to hold down wages to fight inflation. In the North, Northeast, and even in relatively prosperous Rio Grande do Sul, rural people seized unused, private land, forcing the government to create a new land reform ministry. Tension with the Roman Catholic Church, the major voice for societal change, peaked in the early 1980s with the expulsion of foreign priests involved in political and land reform issues.

To attack the soaring debt, Figueiredo's administration stressed exports--food, natural resources, automobiles, arms, clothing, shoes, even electricity--and expanded petroleum exploration by foreign companies. In foreign relations, the objective was to establish ties with any country that would contribute to Brazilian economic development. Washington was kept at a certain distance, and the North-South dialogue was emphasized.

In 1983 the economy leaped ahead with 5.4 percent GDP growth, but it was lost in the rising inflation and the failure of political leadership. Figueiredo's heart condition led to bypass surgery in the United States, removing him from control of the situation. In an impressive display, millions of Brazilians took to the streets in all the major cities demanding a direct vote (diretas já! ) in the choice of the next president. In April 1984, Congress failed to achieve the necessary numbers to give the people their wish, and the choice was left to an electoral college. Figueiredo did not act forcefully to back a preference, so it became a scramble as candidates pursued the collegial votes.

On January 15, 1985, the electoral college elected Tancredo Neves of Minas Gerais, Vargas's minister of justice in the 1950s, and former federal deputy, senator, and prime minister. Neves was a sensible politician with a reputation for honesty. However, he collapsed the night before his inaugural, and the presidency passed to Vice President José Sarney (president, 1985-90), long-time supporter of the military regime. Neves died on April 21. The hopes that 1985 would be a quick transition to a new regime faded as Brazilians watched this turn of events in a state of shock. Like the regime changes of 1822, 1889, 1930, 1946, and 1964, the 1985 change also proved to be long and difficult (see Politics, 1985-96, ch. 4).

*          *          *

Charles Wagley's An Introduction to Brazil , although dated, is still valuable for an understanding of Brazilian history. Darcy Ribeiro provides a stimulating overview in O povo brasileiro . For an examination of how race influenced thought and nationalism, see Thomas E. Skidmore's Black into White . E. Bradford Burns's Nationalism in Brazil: Historical Survey focuses on the creation of Brazilian nationalism. There are several general histories, such as Burns's A History of Brazil , Ronald M. Schneider's Order and Progress: A Political History of Brazil , and Leslie Bethell's two edited volumes for The Cambridge History of Latin America . Modern Brazil: Elites and Masses in Historical Perspective , edited by Michael L. Conniff and Frank D. McCann, sets contemporary Brazilian society into its historical context.

The starting point for the vast literature in English on the 322-year-long colonial era, is Francis A. Dutra's A Guide to the History of Brazil, 1500-1822 . Not to be missed are books by Charles R. Boxer, Stuart B. Schwartz, Dauril Alden, and Kenneth R. Maxwell. The numerous books covering the period 1808-22, when the Portuguese crown ruled from Rio de Janeiro, into the independent Brazilian imperial era, include Roderick J. Barman's Brazil: The Forging of a Nation, 1798-1852 ; Clarence H. Haring's Empire in Brazil ; Neill Macauley's Dom Pedro: The Struggle for Liberty in Brazil and Portugal ; Roderick Cavaliero's The Independence of Brazil ; and Emília Viotti da Costa's The Brazilian Empire . A fascinating study of Pedro II's Brazil is O Brasil no tempo de Dom Pedro II, 1831-1889 by Frédéric Mauro. Slavery is a key topic of many studies, including Stanley J. Stein's Vassouras ; Mary C. Karasch's Slave Life in Rio de Janeiro, 1808-1850 ; Joaquim Nabuco's Abolitionism: The Brazilian Antislavery Struggle ; and Robert Conrad's The Destruction of Brazilian Slavery, 1850-1888 .

An excellent overview of the 1889-64 period is in José Maria Bello's A History of Modern Brazil, 1889-1964 . On the political economy of 1889-1930, see Steven C. Topik's The Political Economy of the Brazilian State, 1889-1930 . For daily life, work, and the roles of women, see Ina von Binzer's Os meus Romanos , Maria Odila Silva Dias's Power and Everyday Life , and Joel Wolfe's Working Women, Working Men .

The military is the subject of José Augusto Drummond's fine study of Tenentismo : O movimento tenentista ; Neill Macaulay's The Prestes Column ; Stanley E. Hilton's 1932 and A rebelião vermelha ; Alfred C. Stepan's The Military in Politics , Authoritarian Brazil , and Rethinking Military Politics ; Frank D. McCann's "The Brazilian Army and the Problem of Mission, 1939-1964" in Journal of Latin; American Studies ; and Amado Luiz Cervo and Clodoaldo Bueno's História da política exterior do Brasil . Foreign relations are the focus of E. Bradford Burns's The Unwritten Alliance: Rio-Branco and Brazilian-American Relations ; Joseph Smith's Unequal Giants ; McCann's The Brazilian-American Alliance, 1937-1945 ; Elizabeth A. Cobbs's The Rich Neighbor Policy ; Ruth Leacock's Requiem for Revolution ; Michael W. Weis's Cold Warriors and Coups d'État ; and Amado Luiz Cervo (ed.), O desafio internacional .

The literature on politics after 1930 is extensive. Some suggestions are Thomas E. Skidmore's Politics in Brazil, 1930-1964 and The Politics of Military Rule in Brazil, 1964-85 ; Ronald M. Schneider's The Political System of Brazil ; Maria Helena Moreira Alves's State and Opposition in Military Brazil ; and Stepan's Democratizing Brazil . For religion and the role of the Catholic Church, see Scott Mainwaring's The Catholic Church and Politics in Brazil, 1916-1985 and Rowan Ireland's Kingdoms Come . (For further information and complete citations, see Bibliography.)

Data as of April 1997



BackgroundFollowing more than three centuries under Portuguese rule, Brazil peacefully gained its independence in 1822, maintaining a monarchical system of government until the abolition of slavery in 1888 and the subsequent proclamation of a republic by the military in 1889. Brazilian coffee exporters politically dominated the country until populist leader Getulio VARGAS rose to power in 1930. By far the largest and most populous country in South America, Brazil underwent more than half a century of populist and military government until 1985, when the military regime peacefully ceded power to civilian rulers. Brazil continues to pursue industrial and agricultural growth and development of its interior. Exploiting vast natural resources and a large labor pool, it is today South America's leading economic power and a regional leader. Highly unequal income distribution and crime remain pressing problems.
LocationEastern South America, bordering the Atlantic Ocean
Area(sq km)total: 8,514,877 sq km
land: 8,459,417 sq km
water: 55,460 sq km
note: includes Arquipelago de Fernando de Noronha, Atol das Rocas, Ilha da Trindade, Ilhas Martin Vaz, and Penedos de Sao Pedro e Sao Paulo
Geographic coordinates10 00 S, 55 00 W
Land boundaries(km)total: 16,885 km
border countries: Argentina 1,261 km, Bolivia 3,423 km, Colombia 1,644 km, French Guiana 730 km, Guyana 1,606 km, Paraguay 1,365 km, Peru 2,995 km, Suriname 593 km, Uruguay 1,068 km, Venezuela 2,200 km

Coastline(km)7,491 km

Climatemostly tropical, but temperate in south

Elevation extremes(m)lowest point: Atlantic Ocean 0 m
highest point: Pico da Neblina 3,014 m
Natural resourcesbauxite, gold, iron ore, manganese, nickel, phosphates, platinum, tin, uranium, petroleum, hydropower, timber
Land use(%)arable land: 6.93%
permanent crops: 0.89%
other: 92.18% (2005)

Irrigated land(sq km)29,200 sq km (2003)
Total renewable water resources(cu km)8,233 cu km (2000)
Freshwater withdrawal (domestic/industrial/agricultural)total: 59.3 cu km/yr (20%/18%/62%)
per capita: 318 cu m/yr (2000)
Natural hazardsrecurring droughts in northeast; floods and occasional frost in south
Environment - current issuesdeforestation in Amazon Basin destroys the habitat and endangers a multitude of plant and animal species indigenous to the area; there is a lucrative illegal wildlife trade; air and water pollution in Rio de Janeiro, Sao Paulo, and several other large cities; land degradation and water pollution caused by improper mining activities; wetland degradation; severe oil spills
Environment - international agreementsparty to: Antarctic-Environmental Protocol, Antarctic-Marine Living Resources, Antarctic Seals, Antarctic Treaty, Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Environmental Modification, Hazardous Wastes, Law of the Sea, Marine Dumping, Ozone Layer Protection, Ship Pollution, Tropical Timber 83, Tropical Timber 94, Wetlands, Whaling
signed, but not ratified: none of the selected agreements
Geography - notelargest country in South America; shares common boundaries with every South American country except Chile and Ecuador
Population198,739,269
note: Brazil conducted a census in August 2000, which reported a population of 169,872,855; that figure was about 3.8% lower than projections by the US Census Bureau, and is close to the implied underenumeration of 4.6% for the 1991 census (July 2009 est.)
Age structure(%)0-14 years: 26.7% (male 27,092,880/female 26,062,244)
15-64 years: 66.8% (male 65,804,108/female 67,047,725)
65 years and over: 6.4% (male 5,374,230/female 7,358,082) (2009 est.)
Median age(years)total: 28.6 years
male: 27.8 years
female: 29.3 years (2009 est.)
Population growth rate(%)1.199% (2009 est.)
Birth rate(births/1,000 population)18.43 births/1,000 population (2009 est.)
Death rate(deaths/1,000 population)6.35 deaths/1,000 population (July 2009 est.)

Net migration rate(migrant(s)/1,000 population)-0.09 migrant(s)/1,000 population (2009 est.)
Urbanization(%)urban population: 86% of total population (2008)
rate of urbanization: 1.8% annual rate of change (2005-10 est.)
Sex ratio(male(s)/female)at birth: 1.05 male(s)/female
under 15 years: 1.04 male(s)/female
15-64 years: 0.98 male(s)/female
65 years and over: 0.73 male(s)/female
total population: 0.98 male(s)/female (2009 est.)
Infant mortality rate(deaths/1,000 live births)total: 22.58 deaths/1,000 live births
male: 26.16 deaths/1,000 live births
female: 18.83 deaths/1,000 live births (2009 est.)

Life expectancy at birth(years)total population: 71.99 years
male: 68.43 years
female: 75.73 years (2009 est.)

Total fertility rate(children born/woman)2.21 children born/woman (2009 est.)
Nationalitynoun: Brazilian(s)
adjective: Brazilian
Ethnic groups(%)white 53.7%, mulatto (mixed white and black) 38.5%, black 6.2%, other (includes Japanese, Arab, Amerindian) 0.9%, unspecified 0.7% (2000 census)

Religions(%)Roman Catholic (nominal) 73.6%, Protestant 15.4%, Spiritualist 1.3%, Bantu/voodoo 0.3%, other 1.8%, unspecified 0.2%, none 7.4% (2000 census)
Languages(%)Portuguese (official and most widely spoken language); note - less common languages include Spanish (border areas and schools), German, Italian, Japanese, English, and a large number of minor Amerindian languages

Country nameconventional long form: Federative Republic of Brazil
conventional short form: Brazil
local long form: Republica Federativa do Brasil
local short form: Brasil
Government typefederal republic
Capitalname: Brasilia
geographic coordinates: 15 47 S, 47 55 W
time difference: UTC-3 (2 hours ahead of Washington, DC during Standard Time)
daylight saving time: +1hr, begins third Sunday in October; ends third Sunday in February
note: Brazil is divided into four time zones, including one for the Fernando de Noronha Islands
Administrative divisions26 states (estados, singular - estado) and 1 federal district* (distrito federal); Acre, Alagoas, Amapa, Amazonas, Bahia, Ceara, Distrito Federal*, Espirito Santo, Goias, Maranhao, Mato Grosso, Mato Grosso do Sul, Minas Gerais, Para, Paraiba, Parana, Pernambuco, Piaui, Rio de Janeiro, Rio Grande do Norte, Rio Grande do Sul, Rondonia, Roraima, Santa Catarina, Sao Paulo, Sergipe, Tocantins
Constitution5-Oct-88

Legal systembased on Roman codes; has not accepted compulsory ICJ jurisdiction

Suffragevoluntary between 16 and 18 years of age and over 70; compulsory over 18 and under 70 years of age; note - military conscripts do not vote
Executive branchchief of state: President Luiz Inacio LULA da Silva (since 1 January 2003); Vice President Jose ALENCAR Gomes da Silva (since 1 January 2003); note - the president is both the chief of state and head of government
head of government: President Luiz Inacio LULA da Silva (since 1 January 2003); Vice President Jose ALENCAR Gomes da Silva (since 1 January 2003)
cabinet: Cabinet appointed by the president
elections: president and vice president elected on the same ticket by popular vote for a single four-year term; election last held 1 October 2006 with runoff 29 October 2006 (next to be held 3 October 2010 and, if necessary, 31 October 2010)
election results: Luiz Inacio LULA da Silva (PT) reelected president - 60.83%, Geraldo ALCKMIN (PSDB) 39.17%

Legislative branchbicameral National Congress or Congresso Nacional consists of the Federal Senate or Senado Federal (81 seats; 3 members from each state and federal district elected according to the principle of majority to serve eight-year terms; one-third and two-thirds elected every four years, alternately) and the Chamber of Deputies or Camara dos Deputados (513 seats; members are elected by proportional representation to serve four-year terms)
elections: Federal Senate - last held 1 October 2006 for one-third of the Senate (next to be held in October 2010 for two-thirds of the Senate); Chamber of Deputies - last held 1 October 2006 (next to be held in October 2010)
election results: Federal Senate - percent of vote by party - NA; seats by party - PFL 6, PSDB 5, PMDB 4, PTB 3, PT 2, PDT 1, PSB 1, PL 1, PPS 1, PRTB 1, PP 1, PCdoB 1; Chamber of Deputies - percent of vote by party - NA; seats by party - PMDB 89, PT 83, PFL 65, PSDB 65, PP 42, PSB 27, PDT 24, PL 23, PTB 22, PPS 21, PCdoB 13, PV 13, PSC 9, other 17; note - as of 1 January 2009, the composition of the entire legislature is as follows: Federal Senate - seats by party - PMDB 21, DEM (formerly PFL) 12, PSDB 13, PT 12, PTB 7, PDT 5, PR 4, PSB 2, PCdoB 1, PRB 1, PP 1, PSC 1, PSOL 1; Chamber of Deputies - seats by party - PMDB 95, PT 79, PSDB 59, DEM (formerly PFL) 53, PR 44, PP 40, PSB 29, PDT 25, PTB 19, PPS 14, PV 14, PCdoB 13, PSC 11, PMN 5, PRB 4, PHS 3, PSOL 3, PTC 1, PTdoB 1

Judicial branchSupreme Federal Tribunal or STF (11 ministers are appointed for life by the president and confirmed by the Senate); Higher Tribunal of Justice; Regional Federal Tribunals (judges are appointed for life); note - though appointed "for life," judges, like all federal employees, have a mandatory retirement age of 70

Political pressure groups and leadersLandless Workers' Movement or MST
other: labor unions and federations; large farmers' associations; religious groups including evangelical Christian churches and the Catholic Church
International organization participationAfDB (nonregional member), BIS, CAN (associate), CPLP, FAO, G-15, G-20, G-24, G-77, IADB, IAEA, IBRD, ICAO, ICC, ICCt, ICRM, IDA, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC, LAES, LAIA, LAS (observer), Mercosur, MIGA, MINURCAT, MINURSO, MINUSTAH, NAM (observer), NSG, OAS, OPANAL, OPCW, Paris Club (associate), PCA, RG, SICA (observer), UN, UN Security Council (temporary), UNASUR, UNCTAD, UNESCO, UNFICYP, UNHCR, UNIDO, Union Latina, UNITAR, UNMIL, UNMIS, UNMIT, UNOCI, UNWTO, UPU, WCL, WCO, WFTU, WHO, WIPO, WMO, WTO
Flag descriptiongreen with a large yellow diamond in the center bearing a blue celestial globe with 27 white five-pointed stars (one for each state and the Federal District) arranged in the same pattern as the night sky over Brazil; the globe has a white equatorial band with the motto ORDEM E PROGRESSO (Order and Progress)

Economy - overviewCharacterized by large and well-developed agricultural, mining, manufacturing, and service sectors, Brazil's economy outweighs that of all other South American countries and Brazil is expanding its presence in world markets. From 2003 to 2007, Brazil ran record trade surpluses and recorded its first current account surpluses since 1992. Productivity gains coupled with high commodity prices contributed to the surge in exports. Brazil improved its debt profile in 2006 by shifting its debt burden toward real denominated and domestically held instruments. LULA da Silva restated his commitment to fiscal responsibility by maintaining the country's primary surplus during the 2006 election. Following his second inauguration in October of that year, LULA da Silva announced a package of further economic reforms to reduce taxes and increase investment in infrastructure. Brazil's debt achieved investment grade status early in 2008, but the government's attempt to achieve strong growth while reducing the debt burden created inflationary pressures. For most of 2008, the Central Bank embarked on a restrictive monetary policy to stem these pressures. Since the onset of the global financial crisis in September, Brazil's currency and its stock market - Bovespa - have significantly lost value, -41% for Bovespa for the year ending 30 December 2008. Brazil incurred another current account deficit in 2008, as world demand and prices for commodities dropped in the second-half of the year.
GDP (purchasing power parity)$1.998 trillion (2008 est.)
$1.901 trillion (2007 est.)
$1.798 trillion (2006 est.)
note: data are in 2008 US dollars
GDP (official exchange rate)$1.573 trillion (2008 est.)
GDP - real growth rate(%)5.1% (2008 est.)
5.7% (2007 est.)
4% (2006 est.)
GDP - per capita (PPP)$10,200 (2008 est.)
$9,800 (2007 est.)
$9,400 (2006 est.)
note: data are in 2008 US dollars
GDP - composition by sector(%)agriculture: 6.7%
industry: 28%
services: 65.3% (2008 est.)
Labor force93.65 million (2008 est.)

Labor force - by occupation(%)agriculture: 20%
industry: 14%
services: 66% (2003 est.)
Unemployment rate(%)7.9% (2008 est.)
9.3% (2007 est.)
Population below poverty line(%)31% (2005)
Household income or consumption by percentage share(%)lowest 10%: 1.1%
highest 10%: 43% (2007)
Distribution of family income - Gini index56.7 (2005)
60.7 (1998)
Investment (gross fixed)(% of GDP)19% of GDP (2008 est.)
Budgetrevenues: NA
expenditures: NA
Inflation rate (consumer prices)(%)5.7% (2008 est.)
3.6% (2007 est.)

Stock of money$95.03 billion (31 December 2008)
$131.1 billion (31 December 2007)
Stock of quasi money$724.5 billion (31 December 2008)
$792.8 billion (31 December 2007)
Stock of domestic credit$1.249 trillion (31 December 2008)
$1.377 trillion (31 December 2007)
Market value of publicly traded shares$589.4 billion (31 December 2008)
$1.37 trillion (31 December 2007)
$711.1 billion (31 December 2006)
Economic aid - recipient$191.9 million (2005)

Public debt(% of GDP)38.8% of GDP (2008 est.)
52% of GDP (2004 est.)
Agriculture - productscoffee, soybeans, wheat, rice, corn, sugarcane, cocoa, citrus; beef
Industriestextiles, shoes, chemicals, cement, lumber, iron ore, tin, steel, aircraft, motor vehicles and parts, other machinery and equipment

Industrial production growth rate(%)4.3% (2008 est.)

Current account balance-$28.19 billion (2008 est.)
$1.551 billion (2007 est.)
Exports$197.9 billion (2008 est.)
$160.6 billion (2007 est.)

Exports - commodities(%)transport equipment, iron ore, soybeans, footwear, coffee, autos
Exports - partners(%)US 14.4%, China 12.4%, Argentina 8.4%, Netherlands 5%, Germany 4.5% (2008)
Imports$173.1 billion (2008 est.)
$120.6 billion (2007 est.)

Imports - commodities(%)machinery, electrical and transport equipment, chemical products, oil, automotive parts, electronics
Imports - partners(%)US 14.9%, China 11.6%, Argentina 7.9%, Germany 7% (2008)

Reserves of foreign exchange and gold$193.8 billion (31 December 2008 est.)
$180.3 billion (31 December 2007 est.)
Debt - external$262.9 billion (31 December 2008)
$240.5 billion (31 December 2007)

Stock of direct foreign investment - at home$294 billion (31 December 2008 est.)
$248.9 billion (31 December 2007 est.)
Stock of direct foreign investment - abroad$127.5 billion (31 December 2008 est.)
$107.1 billion (31 December 2007 est.)
Exchange ratesreals (BRL) per US dollar - 1.8644 (2008 est.), 1.85 (2007 est.), 2.1761 (2006), 2.4344 (2005), 2.9251 (2004)

Currency (code)real (BRL)

Telephones - main lines in use41.141 million (2008)
Telephones - mobile cellular150.641 million (2008)
Telephone systemgeneral assessment: good working system; fixed-line connections have remained relatively stable in recent years and stand at about 20 per 100 persons; less expensive mobile cellular technology is a major driver in expanding telephone service to the low-income segment of the population with mobile-cellular telephone density reaching 80 per 100 persons
domestic: extensive microwave radio relay system and a domestic satellite system with 64 earth stations; mobile-cellular usage has more than tripled in the past 5 years
international: country code - 55; landing point for a number of submarine cables, including Atlantis 2, that provide direct links to South and Central America, the Caribbean, the US, Africa, and Europe; satellite earth stations - 3 Intelsat (Atlantic Ocean), 1 Inmarsat (Atlantic Ocean region east), connected by microwave relay system to Mercosur Brazilsat B3 satellite earth station (2008)
Internet country code.br
Internet users64.948 million (2008)
Airports4,000 (2009)
Pipelines(km)condensate/gas 62 km; gas 9,892 km; liquid petroleum gas 353 km; oil 4,517 km; refined products 4,465 km (2008)
Roadways(km)total: 1,751,868 km
paved: 96,353 km
unpaved: 1,655,515 km (2004)

Ports and terminalsGuaiba, Ilha Grande, Paranagua, Rio Grande, Santos, Sao Sebastiao, Tubarao
Military branchesBrazilian Army (Exercito Brasileiro, EB), Brazilian Navy (Marinha do Brasil (MB), includes Naval Air and Marine Corps (Corpo de Fuzileiros Navais)), Brazilian Air Force (Forca Aerea Brasileira, FAB) (2009)
Military service age and obligation(years of age)21-45 years of age for compulsory military service; conscript service obligation - 9 to 12 months; 17-45 years of age for voluntary service; an increasing percentage of the ranks are "long-service" volunteer professionals; women were allowed to serve in the armed forces beginning in early 1980s when the Brazilian Army became the first army in South America to accept women into career ranks; women serve in Navy and Air Force only in Women's Reserve Corps (2001)
Manpower available for military servicemales age 16-49: 52,523,552
females age 16-49: 52,628,945 (2009 est.)
Manpower fit for military servicemales age 16-49: 38,043,555
females age 16-49: 44,267,520 (2009 est.)
Manpower reaching militarily significant age annuallymale: 1,690,031
female: 1,630,851 (2009 est.)
Military expenditures(% of GDP)2.6% of GDP (2006 est.)
Disputes - internationalunruly region at convergence of Argentina-Brazil-Paraguay borders is locus of money laundering, smuggling, arms and illegal narcotics trafficking, and fundraising for extremist organizations; uncontested boundary dispute with Uruguay over Isla Brasilera at the confluence of the Quarai/Cuareim and Invernada rivers, that form a tripoint with Argentina; the Itaipu Dam reservoir covers over a once contested section of Brazil-Paraguay boundary west of Guaira Falls on the Rio Parana; an accord placed the long-disputed Isla Suarez/Ilha de Guajara-Mirim, a fluvial island on the Rio Mamore, under Bolivian administration in 1958, but sovereignty remains in dispute

Electricity - production(kWh)438.8 billion kWh (2007 est.)
Electricity - production by source(%)fossil fuel: 8.3%
hydro: 82.7%
nuclear: 4.4%
other: 4.6% (2001)
Electricity - consumption(kWh)404.3 billion kWh (2007 est.)
Electricity - exports(kWh)2.034 billion kWh (2007 est.)
Electricity - imports(kWh)42.06 billion kWh; note - supplied by Paraguay (2008 est.)
Oil - production(bbl/day)2.422 million bbl/day (2008 est.)
Oil - consumption(bbl/day)2.52 million bbl/day (2008 est.)
Oil - exports(bbl/day)570,100 bbl/day (2007 est.)
Oil - imports(bbl/day)632,900 bbl/day (2007 est.)
Oil - proved reserves(bbl)12.62 billion bbl (1 January 2009 est.)
Natural gas - production(cu m)12.62 billion cu m (2008 est.)
Natural gas - consumption(cu m)23.65 billion cu m (2008 est.)
Natural gas - exports(cu m)0 cu m (2008)
Natural gas - proved reserves(cu m)365 billion cu m (1 January 2009 est.)
HIV/AIDS - adult prevalence rate(%)0.6% (2007 est.)
HIV/AIDS - people living with HIV/AIDS730,000 (2007 est.)
HIV/AIDS - deaths15,000 (2007 est.)
Literacy(%)definition: age 15 and over can read and write
total population: 88.6%
male: 88.4%
female: 88.8% (2004 est.)

School life expectancy (primary to tertiary education)(years)total: 14 years
male: 14 years
female: 15 years (2005)
Education expenditures(% of GDP)4% of GDP (2004)








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