Background Notes: Brazil
PA/PC
Source: Office of Public Communication, Bureau of Public
Affairs
Date: Oct 15, 199010/15/90
Category: Country Data
Region: South America
Country: Brazil
Subject: Cultural Exchange, Resource Management,
Military Affairs, History, International Organizations,
Trade/Economics
[TEXT]
Official Name: Federative Republic of Brazil
PROFILE
Geography
Area (1989): 8,511,965 sq. km. (3,290,000 sq. mi.). Cities (1989):
Capital--Brasilia (pop. 1.8 million). Other cities--Sao Paulo (11
million), Rio de Janeiro (6 million), Belo Horizonte (2.3 million),
Salvador (2 million), Fortaleza (1.8 million), Recife (1.4 million),
Porto Alegre (1.4 million), Curitiba (1.4 million). Terrain: Dense
forests in northern regions, incl. Amazon Basin; semiarid along
northeast coast; mountains, hills, and rolling plains in the
southwest (incl. Mato Grosso); and coastal strip. Climate: Mostly
tropical or semitropical with temperate zone in the south.
People
Nationality: Noun and adjective--Brazilian(s). Population (1989
est.): 150.1 million. Annual growth rate (1989): 2.1%. Density: 17.6
per sq. km. (45.6 per sq mi.). Ethnic groups: Portuguese, Italian,
German, Japanese, African, Indians, principally Tupi and Guarani
linguistic stock. Religion: Roman Catholic (89%). Education:
Literacy--78% of adult population. Health: Infant mortality rate--
109/1,000. Life expectancy--61.3 yrs. Work force (1989, 62.5
million): Agriculture--35%. Industry--25%. Services--40%. Trade
union membership--about 6 million.
Government
Type: Federative Republic. Independence: September 7, 1822.
Constitution: Promulgated October 5, 1988. Branches: Executive--
president (chief of state and head of government) popularly elected
to a single 5-year term. Legislative--Senate (81 members popularly
elected to 8-year terms), Chamber of Deputies (495 members
popularly elected to 4-year terms). Judicial--Supreme Federal
Tribunal.
Political parties (with congressional representation):
Brazilian Democratic Movement Party (PMDB), National
Reconstruction Party (PRN), Liberal Front Party (PFL), Democratic
Social Party (PDS), Democratic Workers Party (PDT), Workers Party
(PT), Brazilian Labor Party (PTB), Liberal Party (PL), Brazilian
Socialist Party (PSB), Communist Party of Brazil (PC do B),
Brazilian Communist Party (PCB), Christian Democratic Party (PDC),
Brazilian Social Democratic Party (PSDB). Suffrage: Compulsory
from 18-70. Subdivisions: 26 states, federal district (Brasilia).
Defense: 2.6% of 1990 government budget. Flag: A yellow diamond on
a green field; a blue globe with 23 white stars and a band with
"Ordem e Progresso" centered on the diamond. The globe represents
the sky and the vastness of the states and capital, and green and
yellow signify forest and mineral wealth.
Economy
GDP (1988): $352 billion. Annual real growth rate (1985-88): 5%.
Per capita GDP (1988): $2,434. Natural resources: Iron ore,
manganese, bauxite, nickel, uranium, gemstones, oil. Agriculture
(12% of GDP): Products--coffee, soybeans, sugarcane, cocoa, rice,
beef, corn, oranges, cotton, wheat. Land--17% arable, cultivable, or
pasture. Industry: Types--steel, chemicals, petrochemicals,
machinery, motor vehicles, consumer durables, cement, lumber,
shipbuilding. Trade (1988): Exports--$33.8 billion. Major markets--
US 26%, Japan 7%, Netherlands 8%, FRG 4%, Italy 4%, Argentina 3%.
Imports--$14.7 billion. Major suppliers--US 21%, FRG 10%, Japan
7%, Argentina 5%, France 4%. Official exchange rate: Cr 72.3=US$1
(Aug. 1990; changes frequently). Foreign direct investment and
reinvestment in Brazil (registered with Central Bank as of June
1988): $30.7 billion. Sources--US $8.7 billion (28%); FRG $4.8
billion (16%) Japan $2.9 billion (10%) Switzerland $2.9 billion (9%),
UK $1.9 billion (6%), Canada $1.4 billion (5%). Fiscal year: Calendar
year.
Membership in International Organizations
UN and some of its specialized and related agencies, World Bank
and the International Monetary Fund; General Agreement on Tariffs
and Trade (GATT); Inter-American Development Bank (IDB);
Organization of American States (OAS), Rio Pact, Latin American
Integration Association (ALADI); International Sugar Organization
(ISO); International Cocoa Organization (ICCO); International Coffee
Organization; INTELSAT; Group of 77.
PEOPLE
With an estimated population of 150 million, Brazil is the
most populous country in Latin America and ranks sixth in the
world. Most of the people live in the south-central area, which
includes the industrial cities of Sao Paulo, Rio de Janeiro, and Belo
Horizonte.
Urban growth has been rapid; by 1984 the urban sector
included more than two-thirds of the total population. Increased
urbanization has aided economic development but, at the same time,
has created serious social and political problems in the major
cities. Four major groups make up the Brazilian population:
indigenous Indians of Tupi and Guarani language stock; the
Portuguese, who began colonizing in the 16th century; Africans
brought to Brazil as slaves; and various European and Asian
immigrant groups that have settled in Brazil since the mid-19th
century. The Portuguese often intermarried with the Indians;
marriage with slaves was common. Although the basic ethnic stock
of Brazil was once Portuguese, subsequent waves of immigration
have contributed to a rich ethnic and cultural heritage. From 1875
until 1960, about 5 million Europeans emigrated to Brazil, settling
mainly in the four southern states of Sao Paulo, Parana, Santa
Catarina, and Rio Grande do Sul. In order of numbers, after the
Portuguese, the immigrants have come from Italy, Germany, Spain,
Japan, Poland, and the Middle East. The largest Japanese community
outside Japan is in Sao Paulo.
Despite class distinctions, national identity is strong, and
racial friction is a relatively new phenomenon. Indigenous full-
blooded Indians, located mainly in the northern and western border
regions and in the upper Amazon Basin, constitute less than 1% of
the population. Their numbers are rapidly declining as contact with
the outside world and commercial expansion into the interior
increase.
Brazilian government programs to establish reservations and
to provide other forms of assistance have been in effect for years
but are increasingly controversial. Brazil is the only Portuguese-
speaking nation in the Americas. About 90% of the population
belongs to the Roman Catholic Church, although many Brazilians
adhere to Protestantism and spiritualism.
As its geography, population size, and ethnic
diversity would imply, Brazil's cultural profile and achievements
are extensive, vibrant, and constantly changing. Popular culture
predominates, with a thriving popular music industry, relatively
active cinema, and a highly developed television empire, producing
an enormous number of soap operas (telenovelas) that have found a
world market.
The visual arts, especially painting, are lively, while
literature and the theatre, although important, play a less
prominent role in this fast-moving, media-oriented society.
Traditionally, Brazilian culture has developed around regional
subjects, with the country's northeast normally identified with
national themes, both nativist and Afro-Brazilian, while the urban
centers of Sao Paulo and Rio de Janeiro have demonstrated a
tendency toward a more international, and European-oriented
expression. With the post-1964 push to a more integrated national
culture, these tendencies have diminished somewhat but remain
central to understanding the uniqueness of this vast nation.
HISTORY
Recent archeological discoveries suggest that Brazil may
have been inhabited as long ago as 40,000 years. Additional
research must be undertaken before these hypotheses, which may
push the history of Western Hemisphere human occupation back by
as many as 20,000 years, are universally accepted. In addition,
there is continuing speculation that Brazil may have been visited by
the 15th century Portuguese explorers who sailed widely in the
South Atlantic, trading with Africa and settling the Azores and
Madeira Islands. Brazil was formally claimed in 1500 by the
Portuguese navigator Pedro Cabral. It was ruled from Lisbon as a
colony until 1808 when the Portuguese royal family, having fled
from Napoleon's army, established the seat of government first in
Salvador and later in Rio de Janeiro.
Brazil became a kingdom under Dom Joao VI, who returned to
Portugal in 1821, leaving his son, Dom Pedro I, as regent. Dom Pedro
I successfully declared Brazil's independence on September 7, 1822,
and became emperor. Dom Pedro II, ruled from 1831 to 1889, when a
federal republic was established. From 1889 to 1930, the
government was a constitutional democracy with a limited
franchise. The presidency alternated between the dominant states
of Sao Paulo and Minas Gerais.
This period ended with a military coup by Getulio Vargas,
who remained as dictator until 1945. From 1945 to 1961, Eurico
Dutra, Vargas, Juscelino Kubitschek, and Janio Quadros were the
elected presidents. When Quadros resigned in 1961, he was
succeeded by Vice President Joao Goulart. Goulart's years in office
were marked by high inflation, economic stagnation, and the
increasing influence of radical political philosophies. The armed
forces, alarmed by these developments, staged a coup on March 31,
1964. The coup leaders chose as president Army Marshal Humberto
Castello Branco, who was elected by the National Congress on April
11, 1964.
Castello Branco was followed by retired Army Marshal
Arthur da Costa e Silva (1967-69), Gen. Emilio Garrastazu Medici
(1969-74), and retired Gen. Ernesto Geisel (1974-79). Geisel began
the political liberalization process, known as abertura or "opening,"
which was carried further by his successor, Gen. Joao Baptista de
Oliveira Figueiredo (1979-85). Figueiredo not only permitted the
return of politicians exiled or banned during the 1960s and early
1970s but also allowed them to run for state and federal offices in
1982, including the first direct elections for governor since 1966.
However, the electoral college, consisting of all members of
Congress and six delegates chosen from each state, continued to
choose the president. In January 1985, the electoral college picked
Tancredo Neves from the opposition Brazilian Democratic Movement
Party (PMDB). However, Tancredo Neves became ill in March and died
a month later. His vice president, the former Senator Jose Sarney,
who had been acting president since inauguration day, became
president upon Neves' death. Brazil completed its transition to a
popularly elected government in 1989, when Fernando Collor de
Mello won 53% of the vote in the first direct presidential elections
in 29 years.
GOVERNMENT
Brazil is a federative republic with broad powers granted to
the federal government. A Constituent Assembly drafted a new
constitution in late 1988. At the national level, the constitution
establishes a presidential system with three "independent and
harmonious powers"--executive, legislative, and judicial. It forbids
delegation of powers and provides for a series of checks and
balances. The president is assisted by a vice president (elected
with the president), a presidentially appointed cabinet, and
specialized administrative and advisory bodies. The bicameral
National Congress consists of 81 Senators (three for each state and
the federal district) elected to 8-year terms, and 495 Deputies
elected at large in each state to 4-year terms. The elections are
based on proportional representation weighted in favor of less
populous states. The next congressional elections are scheduled for
October 1990.
The apex of the judicial system is the Supreme Federal
Tribunal. Its 11 Justices, including the Chief Justice, are
appointed by the president to serve until age 70. Brazil is divided
administratively into 26 states and a federal district, Brasilia. The
framework of state and local governments closely parallels that of
the federal government. Governors, elected for 4-year terms, have
more limited powers than do their counterparts in the United
States. This is due to the highly centralized nature of the Brazilian
system. The limited taxing authority granted to states and
municipalities--the only territorial subdivisions of the states--
further weakens their power.
The federal district, which moved from Rio de Janeiro to
Brasilia in April 1960, is governed by a governor and vice governor,
both of whom will be chosen in direct elections in 1990.
Principal Government Officials
President--Fernando COLLOR de Mello
Vice President--Itamar FRANCO
Foreign Affairs--Jose Francisco REZEK
Ambassador to the United States--Marcilio M. Moreira
Ambassador to the United Nations--Paulo Nogueira
Brazil maintains an embassy in the United States at 3006
Massachusetts Avenue NW., Washington, DC 20008 (tel. 202-745-
2700). Brazil maintains consulates general in New Orleans, New
York, Chicago, and Los Angeles, and consulates in Miami, Houston,
Dallas, San Francisco, and Atlanta.
POLITICAL CONDITIONS
Following the 1964 military coup, the 13 existing political
parties were abolished, and two political organizations, the pro-
government National Renewal Alliance (ARENA) and the opposition
Brazilian Democratic Movement (MDB), were formed. In 1979, under
a government-sponsored bill approved by the congress, this two-
party system was abolished, and a multiparty system was allowed
to reemerge. In 1989, more than 20 political parties participated in
the campaign. The major parties are:
PMDB--Brazilian Democratic Movement Party (Partido do Movimento
Democratico Brasileiro). The country's largest party suffered
defections in the 1989 campaign. Known as the MDB from 1966 to
1979, under military-dominated governments, the PMDB includes
politicians ranging from conservative to left of center. Most state
governors and almost all PMDB cabinet members belong to the
conservative wing of the party. PMDB popular support is strongest
in urban areas. PFL--Liberal Front Party (Partido da Frente Liberal).
The country's second largest party; defeated in the 1989
presidential campaign, it is now aligned with President Fernando
Collor de Mello. The PFL espouses views similar to those of the PDS,
but looks to different political leaders and maintains fewer ties to
the military establishment. The PFL is strongest in medium-sized
towns and the more conservative cities, especially in the northeast.
It was founded in 1985 by Democratic Social Party (PDS) dissidents.
PSDB--Brazilian Social Democracy Party (Partido da Social
Democracia Brasileira). Led by Senator Mario Covas, the PSDB was
founded in 1988 and includes prominent politicians who quit the
PMDB, PFL, and PDT over political differences with national or state
leaders of those parties. The PSDB advocates adoption of a
parliamentary system of government in Brazil.
PDS--Democratic Social Party (Partido Democratico Social).
Founded in 1982, the PDS is the modern version of the ARENA party,
which represented GOB interests during 21 years of military-
dominated governments (1964-85). It advocates using foreign
capital for economic development. Its popular support is greatest in
certain rural strongholds and among upper/middle class in urban
areas.
PDT--Democratic Workers Party (Partido Democratico Trabalhista).
The PDT is a populist party led by Leonel Brizola. It is strongest in
Rio de Janeiro and Rio Grande do Sul, where Brizola was governor.
Much of its support comes from slum dwellers and the rural poor.
Founded in 1980 by former members of the Brazilian Labor Party
(PTB).
PTB--Brazilian Labor Party (Partido Trabalhista Brasileiro).
The PTB, founded in 1945, is a populist party without a major
national leader. It strongly supports organized labor but advocates
center-right positions on many economic issues. PTB was the party
of Getulio Vargas, one of Brazil's most popular presidents. For
several decades, beginning in 1945, the PTB exercised political
control over Brazil's labor sector. PTB support currently is
strongest among urban working class, professionals, and small
shopkeepers, particularly in Sao Paulo and Parana states.
PT--Workers' Party (Partido dos Trabalhadores). Formed in 1978,
the PT is Brazil's "European-style" leftist party, with a clearly
defined ideology and program, strict party discipline, a hierarchical
structure, and internal party democracy. It is strongest among
intellectuals, organized labor, and the economically disadvantaged.
It draws considerable support from the liberation-theology wing of
the Catholic Church and from the labor confederation, the sole
Workers Central (CUT). In 1988, it won mayoralities of important
industrial cities, including that of Luiza Erundina in Sao Paulo and
Olivio Dutra in Porto Alegre. In 1989, PT presidential candidate
Luiz Inacio Lula da Silva lost to Collor in the second-round run-off
election.
PL--Liberal Party (Partido Liberal). The PL is a center-
right party that is popular among small businessmen and has
growing strength in Sao Paulo and Rio de Janeiro. Presidential
candidate Guilherme Afif Domingos has given the party greater
name recognition.
PRN--National Reconstruction Party (Partido da
Reconstrucao Nacional). The PRN was created by Collor in 1989 and
served as the vehicle for his 1989 presidential campaign. Collor
and his advisers generally advocate free-market solutions to
Brazil's economic problems. His electoral support was greatest in
rural areas and in small towns across the country.
PCB--Brazilian Communist Party (Partido Comunista Brasileiro).
Founded in 1922, the PCB is ideologically communist but has
cooperated with mayors and governors of more moderate parties. It
supported the Sarney administration. It maintains ties with West
European communist parties and identifies with Soviet President
Gorbachev's reforms.
PC do B--Communist Party of Brazil (Partido Communista do
Brasil). The PC do B generally advocates more "revolutionary"
positions than the PCB but has supported noncommunist candidates.
Its electoral support is based within the universities. Former PCB
members founded the party in 1961. In the presidential elections,
the PC do B was one of three parties in the Brazilian Popular Front
(PF) coalition formed to support the PT candidacy of Lula.
PSB--Brazilian Socialist Party (Partido Socialista Brasileiro).
Founded in 1946, the PSB, a leftist party enjoying little popular
support, was the third partner in Lula's PF. Brazil also boasts
several dozen small parties, some of which (e.g., National
Mobilization Party--PMN, Christian Democratic Party--PDC) are
significant in specific regions or states.
ECONOMY
Brazil is a country rich in resources in resources and natural
advantages. To date, however, its economic performance has lagged
behind its potential. Economically, it is a country of contrasts
ranging from sophisticated economic centers around Sao Paolo to
relatively undeveloped trading outposts on the Amazon. Industrial
development has been concentrated in the southeastern states of
Rio de Janeiro, Sao Paulo, Parana, and Rio Grande do Sul but is now
expanding to include the northeast and center west. In 1988,
Brazil's gross domestic product (GDP) totaled $352 billion, with an
estimated per capita GDP of $2,434. During the 1950s, GDP rose at
an annual rate of more than 6%. It slowed from 1963 to 1965 but
averaged above 11% annually during the 1968-73 "economic
miracle." Growth slowed between 1974-80 and from 1981 to 1983
was either negative or nominal.
In 1984, the economy began to improve again, and during
1985-86, GDP grew more than 8% per year. After slowing in 1987,
growth dropped in 1988 to a negative -0.3% but climbed again in
1989 to 3%-4%.
Agriculture, Industry, and Natural Resources
About one-half of Brazil is covered by forests. The largest
rainforest in the world is located in the Amazon Basin and is so
impressive in character and extent that the entire Amazon region is
identified with it. Recent migrations into the Amazon region and
controversial large-scale burning of forest areas placed the
international spotlight on Brazil. The government has since reduced
incentives for such activity and has begun to implement an
ambitious environmental plan.
Eastern Brazil has tropical and semideciduous forests and soil
of limited agricultural value; the nutrients in the small amount of
humus usually are exhausted after only a few years of farming. The
softwood forests of the southern highlands still provide a
substantial portion of the construction timber used in Brazil.
However, fears that these forests are being
cut down so fast that they are in danger of extinction within the
next few decades have led the industry to move north. Major timber
supplies for domestic and export markets now come from the
tropical hardwoods of the Amazon.
The thorn forests of the northeastern interior contain dry,
cactus-infested, drought-resistant vegetation, its sparseness due
as much to overgrazing and overcultivation as to the unreliability of
rainfall. In Central Brazil, the states of Mato Grosso, Mato Grosso do
Sul, Goias, and parts of Minas Gerais and Sao Paulo contain
substantial areas of grassland, with only scattered trees.
Unlike the plains of North America, the Brazilian grasslands
are less fertile, and large areas of these grasslands are best suited
to pastures. The agricultural sector employs 35% of Brazil's
population and accounts for about 12% of its GDP and almost 40% of
the country's exports. Except for wheat, Brazil is largely self-
sufficient in food. It is the world's leading exporter of coffee and
orange juice concentrate; the second largest exporter of cocoa and
soybeans; and a major exporter of sugar, meat, and cotton. During
the past decade, in an effort to expand its agricultural exports,
Brazil began opening new regions to cultivation. The most important
of these are devoted to soybean production in Mato Grosso do Sul,
Rio Grande do Sul, Sao Paulo, Parana and, more recently, Minas
Gerais and Goias. Brazil also has expanded cultivation of sugarcane,
the raw material used to produce the ethyl alcohol fuel that powers
more than half of the nation's cars.
Brazil's power, transportation, and communications systems
generally have kept pace with development, but, in recent years,
facilities in some areas have not met demand due to lack of
investment and maintenance funds. The country has a large and
increasingly sophisticated industrial base, producing basic
industrial products such as steel, chemicals, and petrochemicals
and finished consumer goods and aircraft. A computer industry is
also emerging. Within the past decade, industry has been the
greatest contributor to economic growth. Today, it accounts for
nearly 35% of GDP and 60% of exports. Brazil is one of the world's
leading producers of hydroelectric power, with a potential of
106,500 megawatts.
Existing hydroelectric plants provide 90% of the nation's
electricity. Two large hydroelectric projects, the 12,600-
megawatt Itaipu Dam on the Parana River -- the world's
largest dam -- and the Tucurui Dam in Para in northeast Brazil are
in operation. Proven mineral resources are extensive, and additional
exploration is expanding the resource base. Large iron and
manganese reserves provide important sources of industrial raw
materials and export earnings.
Deposits of nickel, tin, chromite, bauxite, beryllium, copper,
lead, tungsten, zinc, and gold, as well as lesser known minerals, are
exploited. Oil exploration is less urgent now, because of Brazil's
reduced dependence on oil and to lower world prices. High-quality
coal, especially of the coking grade required in the steel industry,
is in short supply. The government is beginning to implement coal
extraction and gasification projects to tap Brazil's ample deposits
of low-grade coal in the south. Brazil's first commercial nuclear
reactor, Angra I, located near Rio de Janeiro, began operating in
early 1982. Site preparations began the same year for Angra II and
III.
With a combined capacity of 1,245 megawatts, these are the
first of eight nuclear plants envisioned under the 1975 nuclear
accord between the Federal Republic of Germany and Brazil.
However, continued troubles with Angra I and scarce funds have
slowed construction of nuclear plants, limiting expansion for the
foreseeable future to the two reactors already under construction.
Brazil also is engaged in research to master the nuclear fuel cycle.
The Brazilian government has undertaken an ambitious program to
reduce dependence on imported oil. Imports previously accounted for
more than 70% of the country's oil needs but now account for only
50%. In addition to developing hydroelectric, nuclear, and coal
resources, Brazil has become a world leader in the development of
alcohol fuel derived from sugarcane.
Brazilian automotive gasoline is a mixture containing up
to 22% ethyl alcohol. Its auto manufacturers began large-scale
production of 100% alcohol-powered cars in 1979, and today more
than 1.5 million are on the road. Alcohol production has not kept
pace, however, leading to alcohol shortages in 1989-90. The Collor
government cut alcohol subsidies, and car makers have regarded to
increase production of gasoline-powered automobiles.
Economic Strategy
Following the 1964 coup, the Brazilian government focused on
two major economic goals, high growth rates and control of
inflation. In the 1970s, escalating oil prices, governmental
indebtedness, and high interest rates brought the Brazilian economy
to a virtual standstill, forcing reduced government expenditures and
subsidies and income tax increases. Nevertheless, budget deficits
have persisted. The combined public sector deficit in 1989 was at
least 7% of GDP.
Taking office in 1985, the Sarney administration
brought inflation to a halt by freezing all prices and ending
indexation of wages and other facets of the economy. Real wage
increases led to a consumer spending boom which created shortages
and tight profit margins. This plan collapsed in November 1986, and
inflation rose to record heights--1,700%--in 1989. In addition, high
levels of imports so reduced foreign exchange reserves that
interest payments on foreign loans were suspended in February
1987. Foreign indebtedness rose to $112 billion (about $18 billion
is held by US commercial banks), the largest of any developing
country.
Debt service claimed most of Brazil's balance of payments,
and periodically the federal government has suspended some forms
of debt service, including a de facto moratorium on payments to
commercial banks in September 1989. In the spring of 1990,
President Collor introduced measures to stabilize and liberalize the
economy. The initial phase of the program, which focused on
drastically reducing liquidity and cutting inflation, appeared to be
achieving its objectives. Inflation slowed nearly to zero within the
first month, rising gradually to about 10% monthly by August.
Although fiscal and monetary performance to date have been
convincing, it is still too early to guage whether Brasilia will be
successful over the long-term in eliminating government red ink.
Collor has put into place the administrative machinery to
implement an ambitious privatization program and has opened
Brazil's markets to foreign goods. Foreign direct investment
represents a relatively small but important part of Brazil's capital
base. The share of foreign direct investment and reinvestment
registered with the central investments totaled $8.7 billion, largely
in manufacturing and finance. The constitution restricts the entry
of new foreign investors in the financial services area, although US
and other foreign institutions established before the prohibition
continue to have a prominent role. The constitution also contains
provisions that restrict investment in petroleum and minerals
exploration, health care, chemicals, biotechnology, and new
materials. The congress has not yet completed legislation on
foreign investment.
Trade and Investment
Brazil's industrial development strategy through the 1980's
was based on a policy that combined import substitution, foreign
investment, and government participation in and regulation of the
economy. This policy contributed to significant growth and, in the
late 1980's, to large trade surpluses. The country recorded a $19
billion surplus in 1988 and $16 billion in 1989--a remarkable
turnaround from the deficits experienced at the beginning of the
decade.
FOREIGN RELATIONS
Traditionally, Brazil has been a leader in the inter-American
community and has played an important role in collective security
efforts as well as in economic cooperation in the Western
Hemisphere. Brazil aligned with the allies in both World Wars and,
during World War II, its expeditionary force in Italy played a key
role in the allied victory at Monte Castello. It is a party to the
Inter-American Treaty of Reciprocal Assistance (Rio treaty) and the
Organization of American States (OAS).
In recent years, Brazil has given high priority to expanding
relations with its South American neighbors and is a founding
member of the Amazon Pact and the Latin American Integration
Association (ALADI), the successor to the Latin American Free
Trade Association (LAFTA). Brazil is a charter member of the United
Nations and participates in many of its specialized agencies. It has
contributed troops to UN peacekeeping efforts in the Middle East,
the former Belgian Congo, and Cyprus. As Brazil's domestic economy
has grown and diversified, the country has become increasingly
involved in international politics and economics. The United States,
Western Europe, and Japan are primary markets for Brazilian
exports and sources of foreign lending and investment. Brazil's
dependence on imported petroleum has resulted in more intensive
political and economic ties with Middle Eastern countries.
In the 1970s, Brazil expanded its relations with black African
countries. In 1986, it introduced a proposal at the UN General
Assembly to establish a Zone of Peace and Cooperation in the South
Atlantic. As an indication of Brazil's broader international role,
trade with other developing countries increased from 9% of the
total in the 1970s to nearly 30% in 1983. The Brazilian Government
has diplomatic relations with the USSR, China, all of the Eastern
and Central European countries, and Cuba but not with Vietnam,
Cambodia, or North Korea.
US-BRAZILIAN RELATIONS
The United States was the first country to recognize Brazil's
independence in 1822. Brazil's 19th-century leader, Emperor Dom
Pedro II, admired Abraham Lincoln and visited the United States
during the 1876 centennial. President Eisenhower was given a hero's
welcome when he visited Brazil in 1960. Presidents Roosevelt and
Truman made earlier visits; President Carter visited in 1978 and
President Reagan in 1982. President Sarney visited the United
States in 1986. In the 1950s and 1960s, Brazil received about $2.4
billion in US economic assistance--$1.4 billion under the auspices
of the US Agency for International Development (AID) and the
remainder under PL 480 (Food for Peace) and Peace Corps programs.
After 1972, US programs stressed training Brazilian in technology
and physical and social sciences (in the United States), especially
at the graduate level.
Some 14,000 persons were trained by AID during this period,
22,000 from all US Government sources. In view of Brazil's
impressive economic development and its increased ability to
obtain loans and technical assistance from private and multilateral
sources, US assistance programs were phased out in the 1970s,
major AID activities in Brazil ended in 1979, and the
Peace Corps program was ended in 1980.
Currently, AID maintains a small advanced developing country
program that emphasizes cooperation in science and technology and
family planning and responds to endemic disease, emergencies, and
natural disasters.
The United States is Brazil's most important commercial
partner and largest investor. The US share of Brazilian trade
averages 22%, and two-way trade amounted to $14.3 billion in 1988.
The growing diversification of U.S.-Brazil trade has led to trade
disputes.
Brazilian trade practices, including prohibition of some
imports and difficult import licensing procedures, market reserve
requirements on computer products, and the lack of intellectual
property protection (especially patents in certain areas)--led to
frictions with the United States and other major trading partners.
These culminated in 1988 and 1989, when the United States named
Brazil in a number of formal trade action and took retaliatory steps
against some Brazilian imports under US trade law. The US
objective was to stimulate negotiations as well as action by the
Government of Brazil to reduce the trade barriers in question. For
its part, Brazil was critical of the United States for singling it out
and of high US tariffs on products of interest to Brazil such as steel
and orange juice. Efforts by both sides during the middle and latter
part of 1989 began to reduce the tensions arising from these issues.
The agreements between Brazil and the United States include
a treaty of peace and friendship; an extradition treaty; a joint
participation agreement on communication satellites; and scientific
cooperation, civil aviation, and maritime agreements. Brazil and the
United States exchange professors under Fulbright and other
academic programs and carry out university cooperation projects.
Principal US Officials
Ambassador--Richard H. Melton
Deputy Chief of Mission--Robert E. Service
Economic Counselor--M. Gordon Jones
Commercial Counselor--Kevin C. Brennan
Political Counselor--John F. Keane
Public Affairs Counselor (USIS)--Robert Jordan
Defense Attache--BG Joseph Stringham, US Army
The US Embassy in Brazil is located at Lote 3, Avenida das
Nacoes, Brasilia, DF (tel. 061-321-7272, telex 061-1091). US
Consulates General are in Rio de Janeiro and Sao Paulo. Consulates
are at Porto Alegre and Recife. Branch offices of the US
Information Service (USIS) and of the US and Foreign Commercial
Service are located in all of these cities and Belo Horizonte.
Consular agents are in Manaus, Sao Luis, Belem, and Salvador da
Bahia.
TRAVEL NOTES
Entry requirements: Visas are required of US citizens. No
inoculations are required for entry. Within Brazil, travelers may be
required to present a yellow fever certificate when transiting
between certain cities.
Climate and clothing: In most parts of the country, days
range from warm to hot, except during the rainy period from
November through February. The extreme south of Brazil does get
cold during the winter (June-August). Wear spring or summer
clothes.
Health: Sanitation facilities in many places are being
expanded. Carefully prepared and thoroughly cooked foods are safe
for consumption. Tapwater is not recommended. Yellow fever,
rabies, gamma globulin, typhoid, and polio immunizations are
recommended.
Telecommunications: Telegraph and long distance telephone
services are good. Brasilia is two time zones ahead of eastern
standard time; however, time differences vary, due to daylight
savings time, in both Brazil and the United States.
Transportation: Direct air service is available. Rio is the
normal point of entry, but Sao Paulo, Manaus, Recife, and Belem also
have international flights. Domestic flights are expensive. Trains
are limited. Inter-city buses run frequently and are inexpensive but
often crowded. Metered taxis with red license plates have
relatively low rates after 11 pm and on weekends. Tipping is the
same as in the US. The highway system in southeastern Brazil and
as far north as Salvador is adequate, but road maintenance is
sometimes incomplete. Security: Street crime is common in
Brazil's larger cities and tourists should take precautions such as
not wearing jewelry, flashing money, or otherwise calling attention
to expensive personal belongings.
For more information, check the Department of State's Tips
for Travelers. Available from the Superintendent of Documents, US
Government Printing Office, Washington, DC 20402: American
University. Area Handbook for Brazil. 1983. US Department of
Commerce. Overseas Business Reports. Foreign Economic Trends.
Foreign Labor Trends.US Department of State. Key Officers of
Foreign Service Posts (Guide for Business Representatives).
Revised triannually.Published by the United States Department of
State -- Bureau of Public Affairs -- Office of Public
Communication -- Editorial Division -- Washington, DC -- October
1990, Editor: Juanita Adams. Department of State Publication
7756 Background Notes Series -- This material is in the public
domain and may be reprinted without permission; citation of this
source is appreciated. For sale by the Superintendent of Documents,
US Government Printing Office, Washington, DC 20402.(###)