Modern Development

In World War I Brazil was the only South American nation to declare war on the Central Powers. International competition in rubber, Brazil's primary export, disrupted the economy in the 1920's, and political revolts, often led by military leaders, were frequent. A revolution in 1930 put Getulio Vargas in power as dictator; he was forced to resign in 1945 following a military coup. During World War II, Brazil had been the only South American country to send troops to aid the Allies. At the war's end it became a charter member of the United Nations. Vargas returned to power as an elected president in 1950, but military leaders again forced him out of office in 1954 after months of rioting, strikes, and inflation.

Under President Juscelino Kubitschek, 1956–61, industry expanded and newly built Brasília replaced Rio as the capital. Severe inflation aggravated a political crisis that occurred in 1961, when President Janio Quadros resigned. Vice President João Goulart claimed the presidency. In 1964 Goulart, who was considered pro-Communist by the military, was deposed in a coup led by General Humberto Castelo Branco. Castelo Branco assumed the presidency, beginning a long period of military domination of the government. The regime soon became unpopular because of its authoritarian rule and the austerity measures it introduced.

A new constitution was adopted in 1967. It increased the powers of the federal government, especially those of the president. In 1968 the president suspended the congress and ruled by decree. A new congressȁ3;one whose powers had been diminished through a constitutional revisionȁ3;was convened in 1969.

The economy grew stronger in the 1960's, although inflation remained a problem. In the early 1970's the Trans-Amazonian Highway, linking the eastern seaports with the jungle interior and Peru, was built. Late in the decade, a gradual return to democracy began. In 1982, free elections were held for congressional and local offices. Meanwhile, the inflation rate and the national debt had reached enormous proportions.

With the election of Tancredo Neves as president in 1985, civilian government was fully restored. Neves died before taking office; Vice President José Sarney succeeded to the presidency. In 1988 a new constitution, which reduced presidential powers, was adopted. Fernando Collor was elected president in the same year. In September, 1992, Collor was impeached by the Chamber of Deputies on corruption charges. He resigned in December and was succeeded by Vice President Itamar Franco. In 1994 a new president was electedȁ3;Fernando Henrique Cardoso, the finance minister, whose economic plan had lowered inflation.

Fernando Henrique Cardoso was reelected president in 1998. Workers’ Party candidate Luiz Inacio Lula da Silva was elected president in 2002 and 2006.