Brazil After the Miracle: An Analysis of the Brazilian Economy

Introduction

In his book "Brazil After the Miracle", Celso Furtado provides a comprehensive analysis of the Brazilian economy from the 1960s to the 1980s. Furtado argues that the Brazilian economy experienced a period of rapid growth during the 1960s and early 1970s, but that this growth was unsustainable and led to a severe economic crisis in the late 1970s and early 1980s.

The Brazilian Miracle

The Brazilian Miracle refers to the period of rapid economic growth that Brazil experienced from the mid-1960s to the early 1970s. During this period, Brazil's GDP grew at an average annual rate of 10%, making it one of the fastest-growing economies in the world. This growth was driven by a number of factors, including:

• Increased investment in infrastructure: The Brazilian government invested heavily in infrastructure during this period, including roads, bridges, ports, and airports. This investment helped to improve the country's transportation network and make it more attractive to foreign investors.
• Industrialization: Brazil also experienced a period of rapid industrialization during this period. The government provided incentives to domestic industries, and foreign companies were attracted to Brazil by the country's low wages and large domestic market.
• Export growth: Brazil's exports also grew rapidly during this period, thanks to the country's comparative advantage in commodities such as coffee, soybeans, and iron ore.

The End of the Miracle

The Brazilian Miracle came to an end in the late 1970s and early 1980s. A number of factors contributed to this, including:

• The oil crisis: The oil crisis of the 1970s led to a sharp increase in the price of oil, which had a devastating impact on Brazil's economy. Brazil was heavily dependent on imported oil, and the increase in the price of oil made it difficult for the country to pay for its imports.
• The debt crisis: Brazil also experienced a debt crisis in the 1980s. The country had borrowed heavily from foreign banks in the 1970s, and the increase in interest rates in the 1980s made it difficult for Brazil to repay its debts.
• Political instability: Brazil also experienced a period of political instability in the 1970s and 1980s. The military dictatorship that had ruled Brazil since 1964 was overthrown in 1985, and the country transitioned to democracy. This transition was accompanied by a period of economic uncertainty.

The Legacy of the Miracle

The Brazilian Miracle had a profound impact on the Brazilian economy. The country experienced a period of rapid growth, but this growth was unsustainable and led to a severe economic crisis in the late 1970s and early 1980s. The legacy of the Miracle is a mixed one. On the one hand, the Miracle helped to modernize Brazil's economy and improve the living standards of its citizens. On the other hand, the Miracle also led to a number of problems, including inflation, unemployment, and poverty.

Conclusion

"Brazil After the Miracle" is a valuable resource for anyone interested in understanding the Brazilian economy. Furtado provides a comprehensive analysis of the Brazilian economy from the 1960s to the 1980s, and he offers a number of insights into the challenges that Brazil faces today. This book is a must-read for anyone interested in Brazil's economic history and its future prospects.