I) Military Dictatorship I. The first phase l964-l975
A) Civil-Military conspiracy ends populist democracy in l964.
B) Politics of military dictatorship. Military decrees a series of institutional acts between l964 and l968 that deprive leading politicians--including three ex-Presidents--of their political rights, i. e. the politics of cassation. Established political parties dissolved and multiparty system ended. Replaced with a government created two party system (a legal pro-government party and a legal opposition party).
C) Military repression, l968-l975. Student organizations dissolved. Union leadership purged. Parliament closed in l968. Press censorship (military censors present at newspapers). Severe repression of guerrilla groups whose leaders are hunted down and usually killed. Arrest and torture of regime opponents. Era of the disaparecidos, and of highly publicized human rights violations.
D) Brazilian "Economic Miracle" of l968-l975. Anti-inflation program of l964-l967 followed by recuperation of the Brazilian economy. Spectacular annual economic growth rates--in some years higher than 10%--between l968 and l975. Profile of income distribution is regressive as government policies favor upper and middle class consumers of industrial goods and hold down working class wages. One of the army dictator-Presidents summarised the process as follows: "A economia vai bem, mas o povo vai mal" ["The economy does well, but the people do poorly."] Military coin slogans: "Brazil: Love it or Leave it!" and "Para Frente, Brasil!"
E) Entreguismo replaced Brazilian economic nationalism in effort to "actualize" the economy. Brazilian nationalism replaced by "entreguismo" in which foreign transnational companies are welcomed in order to speed growth of the industrial economy and the acquisition of new technology. Government continues to play the role of an economic entrepreneur. That is, the government continues to own, administer and establish firms (state capitalism) in an effort to promote economic development.
II) Military Dictatorship II. Decay of the military dictatorship, l975-l985
A) Economic issues.
1) Economic stagnation and recrudesence of inflation, l975-l984. Oil shock price increases of l973 and l979--Brazil is a major importer of oil--do not deter government from carrying out a national economic plan to increase transportation and energy infrastructure, even though the cost will rise. Era of "pharaonic" projects (l974-l979), especially giant hydroelectric power dams (Itaipu, Tucurui) paid for by foreign loans.
2) Controversial "pharaonic" infrastructure projects. Supporters argue that increased energy capacity built during l970s allowed further economic growth and diversification in the l980's. Critics argue that too much money had to be borrowed and that foreign debt payments were beyond the nation's ability to pay by the early l980's as demonstrated by moratoriums, and the moratoria já movement. They also point to Amazon rainforest environmental damage that was a byproduct of the hydroelectric power dam construction.
3) Return of high inflation and economic stagnation in the early l980's leads to a "lost" economic decade, i. e. the l980's. Military blamed for mismanaging the economy.
B) Social investment. Military unwilling or unable to make socially responsible investments. Little or no investment in public education, public health or public housing when measured against the demand, especially after l975. Drastic declines in quality in these areas, especially when measured by the standards of the earlier Vargas' and populist governments.
C) Political issues: Redemocratization. Politics of "redemocratization", l975-l985.
1) Restoration of multi-party politics in l979. Return of competitive two party political competition in l974, and of multi-party political competition in l979. After l982, direct elections for all political positions except President. (Direct popular election of President restored in l989.)
2) End of press censorship, l978. (The last newspaper to have censorship lifted was that of the diocese of São Paulo.)
3) Amnesty decree of l979. Amnesty for cassated and exiled politicians, for former guerrillas, plus regime self-amnesty for military officers guilty of crimes against human rights, l979.
D) Opposition to military dictatorship led by the Church, civil society professional organization, and NGOs.
1) Roman Catholic Church and civil society groups such as journalists and lawyers, more than the political class, leads opposition between l968 and l984. Church speaks out against repression (especially torture), and defends the rights of urban and rural labor unions to strike and mobilize followers. Church either sponsors or defends popular organizations including CEBs (Base [i. e. grassroots] Ecclesiatical Communities), Mother's Clubs, the Movement against the Cost of Living, etc. In defending the right to strike, clergy allow striking workers to meet in churches. Activism of the Church partly based on the idea that organizations that represent political opposition have been suppressed, and that social space is not legally available for striking workers, ideological dissidents. Hence, the Church will make it available.
2) The Catholic Church was the one major institution that remained independent and beyond the reach of the military dictatorship.
E) Evalution of Military dictatorship period, l964-l985. Ended populist and nationalist politics; significant increase in human rights crimes; socially irresponsible; undertook excessive foreign borrowing; promoted income concentration and growth of poverty; oversaw the dramatic growth of street crime in large cities in the early l980's; seriously weakened military institutions which lose prestige and budget.
III) Brazilian democracy, l985 to present.
A) Politics. Multiparty politics. Direct election of the President in l989 (the first time since l960), and l994. President Fernando Coller impeached for corruption in l992. Various corruption scandals involving elected officials and government ministries.
B) Real Plan of l994 ends 15 year cycle of inflation. Brazilian economy sputters between l985 and l994. Succession of government anti-inflation programs fail to end high inflation. Adoption of the Real Plan of l994. New currency (the real) ends the culture of inflation. Government reduces budget deficits, and builds up foreign reserves. High interest rates keeps money in Brazil. Government owned firms sold to Brazilian investors, and foreign investors (privatization). Employees may also purchase stock in the privatized companies. Sales brings additional money to the treasury and reduces but does not eliminate government deficits. Foreign investment eagerly welcomed (politics of "Globalization"). Minimum wage doubles from $60 to $120 per month from l994 to l997). Success of Real Plan allows government to enjoy a moment of popularity among the low income majority of the population.
C) Fernando Henrique Cardoso, a cassated sociologist and left of center social democratic politician from São Paulo, gets credit for the success of the Real plan since he was the Minister of the Treasury in l993-94 who oversaw the design of the Real Plan and its successful initial implementation. Cardoso elected President in l994.
IV) Present Brazilian trends.
A) Chronic unemployment (the highest since l985), especially in Sao Paulo in early l998. Rate in São Paulo nearly 20% as of late April, l998. Modest economic growth in l999.
B) Supermarkets are looted by hungry people, especially in the drought stricken sertão in the Northeastern states. The National Conference of Brazilian Bishops (CNBB) issues a statement defending the right of hungry people to loot supermarkets ("Thanks be to God that the looting occurred" in the words of one bishop). Catholic bishops attack the "crippled" social relief program of the government. Claims the government has no emergency program for starving, homeless victims of the drought. President FHC sharply criticizes the bishops. He says that they are exploiting the despair of the poor.
C) Movimento Sem Terra [Landless People's Movement] or MST organizes invasions of unproductive rural properties and empty urban spaces during Presidency of FHC (l994 to present). Number of invasions grow during l997 and l998. MST also support looting of supermarkets. There is popular support for land reform a la the MST in large Brazilian cities. Brazilian Catholic bishops defend positions of MST.
D) Amazon rainforest destruction. Destruction of Amazon rainforest accelerating since l994 with various actors to blame, including peasant frontier farmers. El Niño produced drought causes forest fires. A vast forest fire burning out of control in Amazonian state of Roraima causes government finally to summons two pajes (native Brazilian witch doctors) to the site of the fire. They perform a ritual rain dance that is followed two hours later by a deluge that douses the fire.
E) President FHC widely criticized for pressuring Brazilian Congress to amend the l988 Constitution so that he is eligible for re-election. Some Congressmen who support the amendment accused of accepting bribes and other favors. Reelection seen as break with a hallowed republican tradition since no Brazilian constitution ever allowed a President to be reelected. Cardoso is reelected in 1998 defeating Luis Inácio Lula da Silva "Lula", candidate of the Partido dos Trabalhadores or Worker's Party. Although Lula loses his third election to be President, the Worker's Party continues to grow and emerges as the leading party on the left in Brazil's multiparty system, and the party favored to win the presidential election of 2002.