21. Curso de Economia Brasileira - IE-Unicamp. Milagre Econômico Brasileiro (1968 - 1973)

Summary

The video discusses Brazil's economic 'miracle' from 1968 to 1973, a period marked by rapid growth but also extreme income inequality. The growth was driven by institutional and policy transformations following the 1964 coup. Key features included the concentration of wealth in the elite, state-driven financial reforms, and heavy reliance on external and internal debt. The economic expansion was fueled by durable consumer goods, increased credit, and an export shift towards manufactured goods. The video also touches on political repression, a concentration of power, and the legacy of this era in shaping modern Brazil's economic structure.

Takeaways

• 😀 The 'economic miracle' in Brazil (1968-1973) was marked by significant growth but was concentrated in a way that worsened income inequality.
• 😀 The economic growth during this period was the result of political and institutional changes following the 1964 military coup, which reorganized the Brazilian economic model.
• 😀 The core of the 'economic miracle' was a new model of accumulation that concentrated wealth among the elite while reducing the role of the working class.
• 😀 Key policies during the 'economic miracle' included increased credit in the economy, monetary and financial reforms, and the use of subsidies to stimulate economic growth.
• 😀 The government's goal was to boost accumulation among the elites, thereby stimulating consumption of durable goods, such as cars and appliances, which contributed to the economy's growth.
• 😀 While the economy grew rapidly, the growth was unbalanced and heavily reliant on external debt and high levels of credit, leading to long-term challenges.
• 😀 There was no significant structural transformation during this period in terms of industrialization or changing the relationships between sectors of the economy.
• 😀 The 'economic miracle' also relied heavily on Brazil's integration into global economic cycles, particularly with the U.S. and international capital, and a focus on exporting manufactured goods and commodities.
• 😀 The policy of concentration of income was accompanied by wage suppression and the expansion of credit to the elite, further exacerbating social inequality.
• 😀 The rapid economic growth was facilitated by institutional reforms, such as changes in fiscal policy and the increased participation of private credit institutions, leading to a greater dependence on external borrowing.

Q & A

What was the economic miracle in Brazil between 1968 and 1973?

The economic miracle in Brazil refers to the period of rapid economic growth between 1968 and 1973, marked by a significant increase in GDP. However, this growth was highly unequal and concentrated in the hands of the elite, resulting in rising income inequality.

How did the economic miracle affect income distribution in Brazil?

The economic miracle led to a concentration of wealth, where the elite saw significant economic gains while the lower classes did not experience comparable improvements. The model focused on increasing accumulation for the elites, exacerbating income inequality.

What role did political and institutional changes play in the economic miracle?

Political and institutional changes following the 1964 coup reorganized the Brazilian economy, shifting it toward a model that prioritized capital accumulation for the elites, suppressed labor rights, and fostered a high degree of state intervention to support this economic structure.

What was the relationship between industrialization and the economic miracle?

Although there was industrial growth during the period, the economic miracle did not focus on structural industrial transformation. Instead, it concentrated on consumer goods, particularly durable goods, which helped create a short-term boost in the economy but did not lead to long-term industrial diversification.

How did the economic miracle's growth model impact employment and wages?

The model led to higher employment in certain sectors, but wages were kept low due to tight labor policies. The government imposed wage controls and limited workers' rights to ensure that business costs remained low, which allowed the elite to accumulate wealth more efficiently.

How did credit play a role in the economic miracle?

Credit became a central instrument in the economic miracle, as the government expanded credit availability, particularly for the elite and large corporations. This facilitated consumption of durable goods and supported the overall economic growth, but also led to increased domestic and external debt.

What was the significance of the export diversification strategy during the economic miracle?

Brazil pursued a strategy of diversifying its exports, especially towards manufactured goods, in order to integrate more effectively into the global economy. This included a focus on the agribusiness sector, which played a significant role in generating foreign exchange.

What were the key reforms that supported the economic miracle?

Key reforms included the financial and monetary reforms, which helped centralize state control over credit and investment. Additionally, the government provided incentives to large corporations and restructured financial markets, including allowing companies to borrow from abroad.

What was the role of the military government in shaping the economic miracle?

The military government played a crucial role in the economic miracle by centralizing political and economic power, fostering a relationship with large corporations, and using state-driven policies to stimulate economic growth. However, this came at the cost of democratic freedoms and political repression.

What were the long-term consequences of the economic miracle in Brazil?

The long-term consequences of the economic miracle included persistent inequality, political repression, and economic vulnerabilities. The focus on rapid growth and external debt created an unsustainable economic model that eventually led to the economic crises of the 1980s.