The Great Depression in Brazil

Causes of the great depression

political inestability and dependence on exports

Political inestability

Prestes, elected in 1930, was overthrown by Vargas

Economy dependent on coffee

Once the great depression hit, the main economy source of Brazil was affceted by reducing their coffee exports

Vargas’s economy response

Import Subsitution Industralization (ISI), Ministry of Labour 

Import Substitution Industrialization (ISI)

Coffee barons started investing in the industries which produced good that were before imported.

Ministry of Labour

Unions were able to be part of the management. The legislation included minimum wages, maximum working week hours. As well as security system.

Limitations of Ministry of Labour

Only for industrials workers, Vargas used labour laws to take actions against individuald and particular state that not cooperate with Vargas regime. 

As well as to avoid revolutionary force. 

Repression

Alianca Nacional Libertadora (ANL) leftist parties, communist party.

Communist Party

They tried to overthrown the government. Vargas took extreme decision and used labour policies. Arresting ANL and communist leader and applying press censorship.