Brazil’s Quest for Brazil’s Quest for Economic GrowthEconomic Growth

Economic ChallengesEconomic Challenges

Most of Brazil’s poor live in favelasMost of Brazil’s poor live in favelas Small number of wealthy own plantationsSmall number of wealthy own plantations Rural workers have to find jobs on plantations Rural workers have to find jobs on plantations

or become subsistence farmersor become subsistence farmers The government promised land redistribution The government promised land redistribution

that never happenedthat never happened People living in the sertao face high poverty People living in the sertao face high poverty

because of the weak soilbecause of the weak soil

Government PoliciesGovernment Policies

Brazilian government has tried to boost the Brazilian government has tried to boost the growth of industry and encourage development growth of industry and encourage development of interiorof interior

Economic ActivitiesEconomic Activities Government built first steel mill and oil refinery in Government built first steel mill and oil refinery in

the 1940sthe 1940s It also built hydroelectric plants along the riversIt also built hydroelectric plants along the rivers A bank was established to loan money to new A bank was established to loan money to new

business ownersbusiness owners Brazil’s economy moved from agriculture to industry Brazil’s economy moved from agriculture to industry

during the 1950s because of auto, chemical, and during the 1950s because of auto, chemical, and steel industriessteel industries

Government Policies Government Policies contd.contd.

Patterns of SettlementPatterns of Settlement Brasilia was created to encourage people to Brasilia was created to encourage people to

move from Rio and Sao Paulomove from Rio and Sao Paulo Government built thousands of roads with Government built thousands of roads with

Brasilia at the centerBrasilia at the center The government gave away plots of land in The government gave away plots of land in

the north to encourage settlementthe north to encourage settlement 1 million people migrated to the Amazon 1 million people migrated to the Amazon

between 1970 and 1985between 1970 and 1985

Economic GrowthEconomic Growth

Industry makes up 1/3 of Brazil’s GNPIndustry makes up 1/3 of Brazil’s GNP Gasohol (mix of gasoline and alcohol) helped Gasohol (mix of gasoline and alcohol) helped

country respond to high gas prices in the country respond to high gas prices in the 1970s1970s

Ethanol is now made from sugar caneEthanol is now made from sugar cane 1/3 of the workforce is in mining, 1/3 of the workforce is in mining,

manufacturing, and constructionmanufacturing, and construction Service industries are also being developedService industries are also being developed These moves have created an educated These moves have created an educated

workforce and growing middle-classworkforce and growing middle-class

Environmental Environmental ChallengesChallenges

Economic development has led to more Economic development has led to more poverty because people can’t find jobspoverty because people can’t find jobs

Government has tried to create low cost Government has tried to create low cost housing to helphousing to help

Challenges and opportunitiesChallenges and opportunities Farming in the Amazon is difficultFarming in the Amazon is difficult

Thick vegetation that was cut down led to soil washing Thick vegetation that was cut down led to soil washing awayaway

Soil is not very fertileSoil is not very fertile Settlers must clear more land after a growing seasonSettlers must clear more land after a growing season

Environmental Environmental Challenges contd.Challenges contd.

New EffortsNew Efforts Deforestation is becoming a very serious Deforestation is becoming a very serious

problemproblem Brazil’s military patrols the rain forest to cut Brazil’s military patrols the rain forest to cut

down on illegal forestrydown on illegal forestry Taxes encourage people to maintain forest Taxes encourage people to maintain forest

areasareas Ecotourism allows people to vacation Ecotourism allows people to vacation

without affecting the ecosystemwithout affecting the ecosystem