Changing Patterns of Economic Development in a Developing Country (Brazil)
(colonialism)
One of the most influential factors affecting the economies of developing countries is their colonial pasts
A colony can be defined as a region that was 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 into the 18th and 19th centurues.
Europe controlled much of Africa, Asia and Australia. Colonialism can be referred to as an entire era of history when a few European nations invaded, conquered and controlled other countries.
The primary function of colonies was to provide their European mother countries with cheap food, 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. It was not freed until September 7th 1822. Colonisation has greatly affected the economic development of Brazil as a result.
Brazil’s economy was once dominated by the exporting of raw materials e.g. tea, coffee, sugar, timber, gold etc. These goods were produced by slave labour. The slaves were brought in from other colonies in Africa.
For at least 100 years after independence, Brazil was still dependent on the exporting of low value raw materials. Its colonial past retained a significant stronghold over the economy (this is known as neo-colonialism)
The prices of such primary commodities fluctuated on the world market, which put Brazil’s economy at risk
Because of the overdependence on such exports, industries and services failed to develop. This resulted in high unemployment rates and widespread poverty. All manufactured goods required by Brazilians were still being imported from Portugal
During its dominance, Portugal (the mother country) introduce new agricultural methods and practices as well as industrial cash crops to the country. Tea, coffee, bananas, rubber and sugar cane were all grown in large plantations known as fazendas.
Colonisation also transformed the culture of Brazil. Portuguese is now the official language. Roman Catholicism is the dominant religion. A multi-racial society has also developed in Brazil.
Today, Brazil has adjusted well to globalisation. It is now one of the leading producers of food in the world (e.g. Tea, coffee, sugar, timber, beef, soya) as well as manufactured products (e.g. cars, tractors, electronics, chemicals and textiles).
In order to adapt to the rapidly developing global economy, Brazil has had to undergo many significant economic changes. In the 1950s, the government introduced a major industrialisation policy, designed to break its dependence on the exporting of low value raw materials and to develop its own industrial wealth.
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. Brazilian powers were finally starting to advocate to replace foreign imports with domestic production. This also helped Brazil to start exporting high value manufactured goods for the first time in its history. The economy transformed from being dependent of 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 in Brazil to further develop its secondary sector. The gov also nationalised all mineral resources, controlling their exploitation and profits (this is where all major branches of industry or commerce are transferred to state ownership or control). Brazil was able to make these changes because of its policy of protectionism; this placed taxes and tariffs on some and outright bans on other imported goods. This makes them very expensive to purchase and in some cases entirely unavailable to buy in others. This meant that Brazilian industries now had a distinct advantage and rapid growth was encouraged.
In the 1970s, however, 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. This created a common market between the countries of Brazil, Argentine, Paraguay, Uruguay and Bolivia. Brazil is currently the largest economy is Mercosul/Mercosur.
In conclusion, the economy and culture of Brazil has been greatly influenced and shaped by colonialism. However it has successfully adjusted to globalisation in recent times.