The beginning of Brazilian industrialization. Industrialization in Brazil

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Brazilian industrial development it happened slowly and only happened after obstacles and political measures had been broken, as in governments by Getúlio Vargas and Juscelino Kubistchek, who were essential for industries to proliferate in the Brazil. For the long years in which the Brazilian territory was a Portuguese colony, the economy was restricted to the practice of agriculture also known as monoculture, that is, the planting of a single type of product, such as sugar.

The Portuguese crown forbade the installation of the manufacturing trade in Brazil precisely to prevent the growth of its colony, so that it would continue only supplying agricultural products to the market external. However, it was after Brazil's independence process that small economic changes began, mainly in the middle of the century XIX, with the development of the coffee economy in which the high profits provided investments in other economic activities, such as the industry.

It was in this scenario of the great profits of the coffee economy that entrepreneurs such as Irineu Evangelista de Souza (the Baron of Mauá), concerned with the development of railways, cities and all the infrastructure necessary for the growth of the parents. However, the first industries were gradually emerging, in the late nineteenth and early twentieth century, they still represented a low participation in the national economy.

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Through this, Brazil imported practically all industrialized products, as its industries had not developed enough. Europe, as the most industrialized region of the globe, did not want Brazilian industrial development, as it would lose the consumer market. Brazil, therefore, depended exclusively on the agricultural economy until the mid-twentieth century and, therefore, faced serious economic and political problems.

The 1929 crisis was an example of the fragility of the Brazilian economy and also a warning that the country needed to diversify its production. It was with the entry of Getúlio Vargas in 1930 that the industrialization process became the guiding axis for political discussions and measures. It was also during the Vargas era that important measures were taken for Brazilian industrial development.

An example of Vargas' policy was the construction of the Volta Redonda Plant in Rio de Janeiro as well as the construction of the Companhia Vale do Rio Doce, destined for the exploration of iron ore in Minas Gerais, and Petrobrás in 1953, which contributed significantly to the acceleration of growth industrial. In addition, Vargas created labor laws preparing the country to organize the growth of industries, as was the case with CLT – Consolidation of Labor Laws.

Industrial growth gained greater dimension after the government of Juscelino Kubistchek (1956 – 1961) with the creation of customs measures for the arrival of international companies in Brazil. This period was known for its optimism regarding the growth of the Brazilian economy in measures such as the Goals plan encouraged industrial production.

This JK policy to stimulate industrial growth became known as national developmental, she focused her attention on investments in energy and transport. For this, JK used foreign capital allowing the entry of multinational companies to Brazil, such as the automobile manufacturer, Volkswagen.

Thus, it was with these political measures of the government of Getúlio Vargas and Juscelino Kubistchek that industrialization Brazil acquired a life of its own and had a dizzying growth, especially in the last years of the 20th century and the beginning of the XXI century.


By Fabricio Santos
Graduated in History

Source: Brazil School - https://brasilescola.uol.com.br/historiab/industrializacao-brasileira.htm

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