How developed is Brazil?

In the 1970's five main pressures created the debts:

1. Oil prices rose (doubled then quadrupled by 1979) so Brazils import bill increased as it tried to fuel growing industry.
2. Oil rich countries had money to lend – Brazil borrowed from them and World Bank etc…
3. Export profits have had to be used to pay interest on international debts (from loans)
4. Prices for Brazil's exports fell on the world market (coffee, other food items).
5. The International Monetary Fund has pressured Brazil to change the economy – gave government targets to reduce government spending and borrowing (called Structural Adjustment Policy)  

Pressure: debt repayment forced exploitation of natural resources:

• The rainforest
• Fast flowing rivers
• Mineral wealth beneath the surface e.g gold, iron, bauxite, copper, manganese
• Land available for creating estate farming cash crops

Issues facing Brazil in late 20th century:

Interest rates have continued to rise ----- Brazil has paid it's debt many times over.  Poor have continued to get poorer and poorer.  Brazil finds it hard to produce the food it needs as it is taking up any growing area with cash crops and making products that suit other countries' needs. The industries that there are have slumped and there are very few jobs to go around. Each product that they make can be bought more cheaply elsewhere, so their debt increases as their products decrease.

What strategies are the government using to boost development ?

The government has set up several new schemes.

1. Trans Amazon Highway (interior on west – east axis). Built in 1970’s. Designed to open up Rondonia state.
2. New network of motorways interconnecting the cities on south (South East region)- eastern coastal strip: multi lane highways. This has helped attract new business e.g Pepsi’s massive new bottling plant and new shopping malls and leisure complexes.
3. New inland capital city Brasilia (Centre West region)– decentralising population from cities on coast to new capital in land. This has boosted image of inland area but has not halted rural to urban migration to already overcrowded coastal strip.
4. Baixo Acu (Rio Grande do Norte state) Dams and Reservoirs in Caatinga (Norte region) – new HEP schemes with dams to reduce drought. 17,000 new reservoirs – new mechanised farms. Also smaller irrigation schemes. HEP schemes designed reduce dependence on oil imports. Irrigation designed to improve farming and reduce rural poverty. Benefits felt mainly by wealthy farmers and fruit companies. 270 families have been relocated. Transnational companies created estates growing cash crops. Many small farmers feel let down by promises of pumping kits & canal digging equipment.
5. Grand Carajas Mining Project in Para state in Norte (North) region. Scheme run by the government. Includes ranching , resettlement, forestry and open-cast iron ore mines. As well as iron, mines also built for bauxite, copper, manganese, nickel.  Carajas exports 8% of world’s iron ore. Funded by USA (300 $ millions) and EU ($600 millions). A further $ 70 millions spent on environment and indigenous peoples schemes. Gold mines also – problems of mercury poisoning in rivers.  Protected zones and reserves are being created. Landscaping after open cast mining.
6. New city Curitiba on coast, south west of Sao Paulo (South East region)– urban planning – garbage & recycling schemes to clean up shanty towns, flood control systems to reduce swamp flooding, rebuilding old zones and arcades, pollution controls, cycle path network, integrated public transport system.
7. Site and Service / Self help schemes Sao Paulo / Rio de Janeiro (South East region) - urban notes) and case study on Sao Paulo.
8. Developing steel industry (South East region)– cheap labour has attracted new developments to Sao Paulo region – first integrated steel works in Brazil built 1947. 1998 there are 5 integrated plants in south est region where all raw materials; iron, coal, limestone are found. Near market – car industry in Sao Paulo (Volkswagen, Fiat, General Motors and Ford all located there, 4 of 2,000 foreign companies in Sao Paulo). Aircraft / defence industry big steel use too. 
9. New weapons industry in Sao Paulo / Rio de Janeiro area (South East region) – major growth 1975 – 1995. Located near major steel works. Defence commitments are important to Brazil (military government in 1960’s – 1970’s) – drug trafficking & guerilla wars along its borders. Located on new motorway routes – near decision making and industrial centres. 80% of Brazil’s weapons are produced here as well as nuclear research near Sao Paulo. Brazil now exports weapons. The RAF makes a Tuscano training aircraft in Belfast, made from parts manufactured in Brazil !