Changing Patterns of Economic Development in a Developing Country (Brazil
(Brazil)
One of the most influential factors affecting the economies of developing countries is their colonial pasts
A colony can be defined as a region once conquered and rules by another country. Colonialism began as early as the 14th century, with the expansion of Spain and Portugal into Latin America. This lasted well into the 18th and 19th centuries, with Europe exerting control over much of Africa, Asia and Australia. As a result, colonialism can be called an entire era in history where a few European nations invaded, conquered and controlled countries in far off places
The primary function of colonies was to provide the European mother countries with cheap food, agricultural raw materials and minerals. In turn, they provided large markets for the goods produced by the colonial nation
Brazil was colonised in the 16th century by the Portuguese and wasn’t freed until September 7th 1822. As a result, colonialism has greatly affected Brazils economic development
Brazil’s economy was once dominated by exporting raw materials eg, tea, coffee, sugar, timber, gold etc. These goods were produced by slave labour, with slaves being brought in from Africa
For at least the first 100 years after independence, Brazils economy was still dependent on the exporting of low value raw materials, with its colonial past retaining a significant stronghold over the economy (neo colonialism). The prices of such primary commodities fluctuated wildly on the world market, putting the whole economy of Brazil at risk
Because of this overdependence on such exports industries and services failed to develop. This resulted in high unemployment rates and widespread poverty. All manufactured goods required were still being imported from Portugal
During colonisation, Portugal introduced new agricultural methods and practices as well as industrial cash crops. Tea, coffee and bananas were all grown in large plantations known as fazendas, using prime agricultural land
Colonisation also transformed Brazilian culture. Portuguese is now the official language, with Roman Catholicism being the dominant religion. A multi-racial society has now also developed
Today, the country has adjusted very well to globalisation. It is now one of the leading producers of food in the world. Tea, coffee, sugar, timber, beef and soya and manufactured products such as cars, electronics, chemicals and textiles are exported from all over the world
In order to adapt to the rapidly developing global economy, Brazil had to undergo many significant economic changes. In the 1950s, the government introduced a major industrialisation policy designed to break its dependence on exporting low value raw materials to develop its own industrial wealth. As a result, the government began its Import Substitution Industrialisation (ISI) Policy. Under this, industries were purposely constructed to supply goods that the country was accustomed to importing; the Brazilian government was finally beginning to advocate to replace foreign imports with domestic production. This helped Brazil to start exporting high value manufactured goods for the first time. The economy soon transformed from depending on the exporting of low value raw materials to the exporting of high value manufactured goods
MNCs such as General Motors, Ford, Mercedes, Fiat and Shell have all been encouraged to locate their production plants. The government also nationalised all mineral resources, thus controlling their exploitation and profits (ie, where all major branches of industry or commerce are transferred to state ownership or control). Brazil was able to make such changes because of its policy of protectionism; placing taxes and tarifs on some and outright bans in other important goods, making them very expensive to buy or entirely unavailable. This meant that Brazilian industries now had a distinct advantage and rapid growth was encouraged.
In the 1970s, Brazil was forced to open its economy and allow imports once again. This was due to the worldwide oil crisis and global recession. They could no longer afford the large amounts of oil their industries needed. Brazil was now forced to trade with other countries again for the first time in a long time
In 1991, the Mercosul/Mercosur trading group was established, creating a common market between Brazil, Argentina, Paraguay, Uruguayan and Bolivia. Brazil is currently the largest economy in the Mercosul
In conclusion, the economy and culture of Brazil has been greatly influences and shaped by colonialism. However, it has successfully adjusted to globalisation in recent times