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Challenges resulting from colonialism faced by Brazil (a developing…
Challenges resulting from colonialism faced by Brazil (a developing economy)
Colonised by the Portuguese in 1500s
Independence in 1822
Portuguese exported unprocessed raw materials back to Portugal as cheap
Secondary economic activities not encouraged
Large farms&ports on east coast
First exported timber
Large coffee bean farms exported coffee beans to Portugal, other European countries & USA
All manufacturing took place in Portugal & the developed North; Brazil's industry could not develop
Pattern of trade shifted from Colonial to
Neo-Colonial
The economic arrangements used to maintain control over Brazil & Brazil continued to export unprocessed raw materials until the late 1950s
During the 1950s, Brazil became a closed economy operating a policy of import substitution
Tariffs placed on goods coming from abroad
Aim: To replace imported manufactured goods with goods produced in Brazil
Oil crisis of the 1970s forced Brazil to start exporting goods
Ruled by military dictatorship 1964-1985, plunged country into debt crisis
In 1985 the IMF introduced a number of Structural Adjustment Programmes
Insisted that Brazil open its economy to foreign investment & remove trade barriers
Emphasis placed on growing cash crops e.g soya
Spending on healthcare & education reduced