Agriculture and Economic Development in Brazil, 1960-1995

Agriculture and Economic Development in Brazil, 1960-1995

Olukoya Ogen

This paper attempts to emphasize the fact that the agricultural sector is the engine of growth in any developed economy. Specifically, the work limits itself to the important role of the agricultural sector in engendering sustainable development and a significant level of poverty reduction in Brazil. This is with a view to reiterating the fact that Nigeria and other Third World countries need to develop their monumental agricultural potentials because only therein lies their economic salvation. Indeed, researches have shown that the agricultural sector is strategically positioned to have a multiplier effect on any nation's socio-economic and cultural fabric because of the multifunctional nature of agriculture.

Theoretical Perspectives

In terms of its basic philosophical fundamentals, this work adopts two theoretical approaches in its analysis. These are the theory of geographical determinism, and liberal political economy. The theory of geographical determinism despite its limitations,1 affected the nature and type of agriculture that evolved in Brazil in a most radical manner. In fact, ecological factors provided most of the major pre-conditions for the development of the vibrant, sophisticated and complex agricultural sector of Brazil. For example, Brazil's highly acclaimed diversified agriculture which ranges from tropical to temperate zone products is as a result of its wide range of climatic zones. Furthermore, it is important to reiterate the fact that the ecosystem must not be treated merely as a backdrop to historical change, it needs to be adequately integrated into analyses of agricultural change.2

Thus, the approach establishes a close relationship between agricultural practices and the nature of environment. The agricultural conditions of Brazil typify a classical case of an agricultural scenario that effectively contended with the imperatives of geography. Indeed, it will be shown in this work that the organisation and patterns of agricultural production in Brazil have been highly influenced by soil types, rainfall patterns, crop diseases and other ecological variables.

The liberal political economy approach underscores the pervasive and fundamental relationship between economic activities in a given socio-political context.3 As far as agricultural development is concerned in Brazil, this approach highlights how the internal and external dynamics of the nation building process in Brazil affected the structure of its agriculture. The waves of migration and incursions by different racial and ethnic groups into Brazil were decisive in fashioning the social relations and the nature of the agricultural economy that evolved. Thus, the liberal political economy approach integrates both political and social factors as explanatory elements in agricultural analysis.4 This approach also emphasises the enduring relationship between agricultural activities in their social and political contexts.

A Survey of the Geography, History and Economy of Brazil

Since agricultural phenomena need to be situated in their socio-geographical and historical contexts, it is necessary to briefly attempt a survey of the geography, history and economy of Brazil.

Brazil is located in South America, it covers nearly half of the continent and it is South America's largest nation. It covers about 4,772 km from the north-south and 4,331 km from east-west. It borders every nation on the continent except Chile and Ecuador. Brazil may be divided into the Brazilian Highlands or plateau, in the south, and the Amazon River Basin in the north. More than a third of Brazil is drained by the Amazon and its more than 200 tributaries.5

Brazil's natural resources, such as, its fertile farmlands and rich mineral deposits, have been the backbone of the nation's economy throughout much of its history. These two important factors have also helped Brazil to become one of the world's leading manufacturing nations.6 Portuguese is widely spoken and it is the official language. 55% of the population is made up of Whites, which include Portuguese, Germans, Italians, Spanish and Poles. 38% is made up of mixed White and 6% of the population is made up of Africans, while Japanese, Arabs and Amerindians make up the remaining 1%.7 Brazil's current population figure is estimated at 176,029,560,8 though a national head count in August 1996 reported a population of 157,079,573.9 This figure makes Brazil the world's sixth most populous country.

The literacy rate is 81%. In year 2000, the Gross Domestic Product (GDP) was $1.13 trillion, per capita income was $6,500. Real growth rate was 4.2% and the inflation rate was 6%, while the rate of unemployment was 7.1%. Brazil has a work force of 79 million, the service sector employs 53.2%, the agricultural sector employs 23.1% and industry, 23.7%.10

The major industries are textiles, shoes, chemicals, cement, iron ore, tin, steel, aircraft, motor vehicles, machinery and equipment. Brazil's natural resources include bauxite, gold, iron ore, manganese, nickel, phosphates, platinum, tin, uranium, petroleum, hydropower and timber. Brazil has a highly developed telecommunication system with 17,039 million landlines, 4.4 million mobile cellular lines, 1822 radio stations and 138 television stations. It has 8.65million internet users and 3,264 airports.11

History and Economy: Brazil is the only Latin American nation that derives its language and culture from Portugal. The native inhabitants mostly consisted of the nomadic TupÐ"­-GuaranÐ"­ Indians. Admiral Pedro Alvares Cabral claimed the territory for Portugal in 1500. The early explorers brought back a wood that produced a red dye, pau-brasil, from which the land received its name. Portugal began colonization in 1532 and made the area a royal colony in 1549.12

During the Napoleonic Wars, King JoÐ"Јo VI, fearing the advancing French army, fled the country in 1808 and set up his court in Rio de Janeiro. Joao was drawn back to Portugal in 1820 by a revolution, leaving his son as regent. When Portugal tried to re-impose colonial rule, the regent declared Brazil's independence on September 7, 1822, becoming Pedro I, emperor of Brazil. Harassed by his Parliament, Pedro I abdicated in 1831 in favour of his son, who became emperor in 1840 (Pedro II). The son was a popular monarch, but discontent built up and, in 1889, following a military revolt, he abdicated. Although a republic was proclaimed, military dictatorships ruled Brazil until a revolt permitted a gradual return to stability under civilian presidents.13

President Wenceslau Braz co-operated with the Allies