Brazil's Economic and Political Landscape Before WWI

Old Republic

Period in Brazilian history before World War I.

Paulistas

Residents of São Paulo, influential in coffee production.

Valorization

Government program to stabilize coffee prices.

Merchant Houses

Foreign companies controlling Brazil's coffee trade.

Feudalistic

Socioeconomic system with landowning elites and peasants.

Monocultural

Economy reliant on a single crop, coffee.

Economic Theory: Classical Liberalism

Belief in minimal government intervention in the economy.

Export-Dependent

Economy reliant on exporting agricultural goods.

Import-Dependent

Economy reliant on imports for manufactured goods.

Commercial Dependence

Reliance on foreign control of commerce and banking.

Laissez faire economics

Economic system with minimal government interference.

Comparative advantage

Theory that countries should specialize in their strengths.

Extreme Federalism

Political system with strong state governments.

Oligarchic

Political power held by a small elite.

Coffee States

Regions in Brazil dominant in coffee production.

Economic Primacy of São Paulo

São Paulo's significant contribution to Brazil's economy.

Political Power

Control of national government by coffee-producing states.

Resentment of Other States

Opposition from northern states to coffee planters' dominance.

Overproduction

Excessive coffee supply leading to falling profits.

Government Intervention

State actions to stabilize coffee market.

Foreign Dependency

Reliance on foreign loans and markets.

Commercial Dependence

Dominance of foreign merchants in local trade.

Coffee Trade Structure

System favoring foreign merchants over local producers.

Effects of Coffee on Brazil

Coffee industry shaped political and economic landscape.