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Import Substitution Industrialization

introduced by Vargas. Brazil should reduce its dependency on foreign investment via local production of industrialized products. Encourage industrialization to substitute imports, "produce in Brazil for Brazil". Results= industrial production doubles, Brazilian national income increases, Economy no longer relies on external factors, diversification of agriculture

Article 119 (Constitution of 1934)

stressed the govt's responsibility for economic development. Nationalization of mines, mineral deposits, and waterfall and other sources of energy, as well as of industries considered as basis or essential to economic defense of the country

Estado Novo

changes in Industry and Labor, Constitution of 1934, the brazilian regime created by Getulio Vargas, 1937-1945. Its industrialization program and general expansion of government activities were typical of mid-1900s nationalist movements.

Patronage Based Politics

granted requests and extended favors to people selectively in return for their political support. State-appointed union leaders, military leaders. Sponsored Carnival activities and even funded samba schools. Held political rallies at soccer stadiums


govt price support; when commodity (coffee) is overproduced, govt intervenes to maintain prices by withholding stocks from market or restricts planting. Causes increase in coffee prices (less supply, price increases) = increase in loans needed to finance output. coffee planters dangerously dependent on valorization...especially with new emphasis on industrialization in Brazil


govt coordinates all economic activity within the nation (the distribution of working licenses to employees, management of the workers' unions, regulation of the economy, power removed from hands of working class). strengthened the power of the govt both legally and politically

Five Year Plan

expand heavy industry, create new sources of hyrdopower, expand rail networks

Labor Tribunal System (Constitution of 1934)

gave govt power to fix minimum wages and guaranteed the right to strike

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