History of Brazil (1985-present)
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After the end of the military dictatorship, Brazil went into a troubled process of redemocratization.
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[edit] Transitional period
In 1984 many public demonstrations were held in main Brazilian cities making clear that military rule could not continue. Brazilians started to demand changes in the electoral system, aiming to directly elect the President. As public pressure build up, opposition party (MDB) proposed a law to implement this change. Congress was controlled by government party (ARENA) and failed to pass the law.
The momentum though was seized by Tancredo Neves of Minas Gerais, Getúlio Dornelles Vargas' minister of justice in the 1950s, and former federal deputy, senator, and prime minister. Neves was a sensible politician with a reputation for honesty.
His abilities allowed him to build up an alliance between the opposition party (MDB) and defectors from the government party (ARENA): The Democratic Alliance (Alianca Democratica) presented itself tuned with 1984's demands for political change and end of military rule.
It presented Tancredo Neves as opposition candidate against Paulo Maluf in the Electoral College. As public opinion put pressure on Electoral College demanding the end of the regime, Tancredo was elected my majority vote in January 15, 1985.
Tancredo however collapsed the night before his inauguration, and the presidency passed to Vice President José Sarney (president, 1985-90), long-time supporter of the military regime. Neves died on April 21. The hopes that 1985 would be a quick transition to a new regime faded as Brazilians watched this turn of events in a state of shock. Like the regime changes of 1822, 1889, 1930, 1946, and 1964, the 1985 change also proved to be long and difficult.
Sarney called a National Assembly to write a new Democratic Constitution. It was presided by Ulysses Guimarães, who led the civilian resistance to the military rule.
The New Constitution was proclaimed in October 1988 and restored civilian and public rights such as: Free speech, end of any previous censorship, independent Public Prosecutors (Ministerio Publico), free economics, direct and free elections and universal health system. It also decentralized government, empowering local and state governments.
As politic transition developed, economy suffered with high inflation and stagnancy. Sarney tried to control inflation with many economic acts, or Plans: Plano Cruzado 1, Plano Cruzado 2, Plano Verao. All them included government control over prices, price freezings and ultimately changing national currency. During Sarneys's presidency, Brazil had 3 currency units: Cruzeiro, Cruzado and Cruzado Novo. Economic domestic troubles led to canceling payments of Brazilian International Debt in 1988. This closed international financial markets for Brazil and economic situation got worse.
Despite initial decrease, inflation returned higher than before economic plans, achieving 84% a month at 1990. Government's inability to deal with inflation ultimately led parties that conducted political transition to be defeated in 1989's election.
[edit] The Collor and Franco administrations
The first direct presidential election after 29 years was held on October 15, 1989 (first round) and November 15th, 1989 (second round). Fernando Collor de Mello ran against Luis Inacio Lula da Silva. Collor was elected with 53% of the vote for a 5-year term.
Collor's agenda focused on fighting corruption in Sarney's administration and completing the transition from the 21-year military rule to civilian government. Economic changes aimed to control soaring inflation and modernization.
Though he had massive support in direct vote, the administration had short parliamentary base as Collor's recently founded party had few deputies and no senators and faced fierce opposition from main parties that splintered out from Democratic Alliance: Democratics (PMDB), Liberals (PFL), and Social Democrats (PSDB).
His first act was known as Plano Collor: all savings accounts and financial investment were frozen, national currency was changed from Cruzado Novo to Cruzeiro (NCz$1,000 = Cr$1). Plano Collor had an initial success, but afther 6 months it failed its main goal, as inflation accelerated again. This started to erode Collor's prestige.
Other economic changes included lifting import barriers exposing local companies to international competition. Many companies went bankrupt or were sold, unemployment grew and government support deteriorated.
The parliamentary elections were held on October 15, 1990 and the government failed to elect a reliable base in Congress and the president started to lose support.
In 1992, a major corruption scandal led to the impeachment and resignation of President Collor.
His vice-president, Itamar Franco, assumed the presidency for the remainder of Collor's term.
Franco moved away from Collor and made arrangements for a National Coalition Government including main leaders from PMDB, PFL, and PSDB. Franco appointed Fernando Henrique Cardoso as Minister of Treasury and gave him the responsbility to control inflation (3.5% per year).
Cardoso put together a successful stabilization program (Plano Real) that brought inflation to 6% year. Franco's approval ratings boosted and he supported Cardoso to succeed him.
In the October 3, 1994 presidential elections, Fernando Henrique Cardoso, was elected with 54% of the votes.
[edit] The Cardoso administration
The third president, Fernando Henrique Cardoso, started his first term in January 1, 1995 and was reelected in 1998. President Cardoso has sought to establish the basis for long-term stability and growth and to reduce Brazil's extreme socioeconomic imbalances. His proposals to Congress include constitutional amendments to open the Brazilian economy to greater foreign participation and to implement sweeping reforms - including social security, government administration, and taxation - to reduce excessive public sector spending and improve government efficiency.
But the growth of country's wealth and power was not followed by any improvements of people's life conditions. Although Brazil is today South America's leading economic power and the world's ninth largest economy, highly unequal income distribution, which had been at the root of political conflict throughout Brazilian history, especially during the Vargas years, remains a pressing problem. These socio-economic contradictions helped usher Lula da Silva, Brazil's first elected leftwing president, into the presidency in January 1, 2003.
Brazil started to negotiate with foreign powers in order to have its prominent role in the third world recognized. In 2004, the Brazilian government started to put pressure on United Nations to gain a permanent seat on UN Security Council.
[edit] The Lula administration
The Workers Party (PT) government of Luiz Inácio da Silva, known as Lula, maintained relations with foreign banks and the IMF, and declined to adopt policies of nationalization of private companies or collectivization of land. Social movements such as the Landless Rural Workers Movement (MST) and the Unemployed People Movement started agitation in urban and rural areas, invading farms, buildings and even government buildings and courthouses in major cities. While Lula's mainstream economic policies disappointed his most radical allies, it restored investor confidence in the country that underwrote moderate economic growth and employment expansion.
In spite of the PT's reputation for clean and efficient government at the local level, a burgeoning corruption scandal in mid-2005 threatens to collapse Lula's administration. After PT ally and Labor Party leader Roberto Jefferson was implicated in a bribery case, he accused the PT in June of paying members of congress illegal monthly stipends to vote for government-backed legislation. Then in August, campaign manager Duda Mendonça admitted that he had used illegal money to finance the PT electoral victory of 2002. Lula's previously high popularity ratings fell and his re-election in 2006 was thrown into doubt at that time. Recent polls however showed that Lula was able to regain part of his lost popularity, mostly by exalting the achievements of his administration.
[edit] See also
| History of Brazil: Timeline & Topics Indians | Colonial | Empire | 1889–1930 | 1930–1945 | 1945–1964 | 1964–1985 | 1985–present |
