Economy of Brazil

Developing Natural Resources

 Brazil is a country that could be a world power because of all its plentiful resources.  Poor organization and leadership and inefficient methods have led to large debts.  Brazil’s Amazon rain forest is called the “World’s Medicine Cabinet” because of all the plants that can only be found in Brazil.  They have only studied and found out about 10% of the plants in the rain forest.  Many scientists feel that the cure for aids will be found in the Amazon if the plants aren’t destroyed by deforestation and pollution.  Brazil’s land is also rich with a wide selection of gold, minerals and semi-precious stones.  In order to get these things, though; they must cut down large sections of the rain forest.  Poor leadership and organization have contributed to many of these resources being wasted and destroyed.

 History of the Economy

          Brazil’s economy has a lot of potential for growth.  Brazil however,  is struggling because of poor management in the past.  Brazil’s first big industry was sugarcane.  Then they had a brief gold and diamond boom.  In the late 18^th century, Brazil started growing coffee.  It is still a very important industry today.  Brazil had a very powerful rubber industry in the 1800s.  In 1888, the rubber boom was at full speed and Manaus was the center of all the action.  The coffee barons gained control of Brazil which ensured the rich became richer.  Fortunately, this ended after only a short time.  This and other industries have used slavery in the past. Later in the early 90's Brazil was trying to industrialize, but the country had insufficient funds.  They got a large loan from the World Bank.  Then, their industries lost power and Brazil was left with a large debt.  Brazil is still struggling with that debt today.

 Human Resources

The Socio Economic status of Brazil is based on two main classes.  There are the very rich and the very poor.  There are very few people who could be classified as middle class. The large landowners have control of the government, the industry and the trade.  There is a literacy requirement for voting, so the poor who can’t afford to go to school, don’t get to vote.  The government doesn’t supply any funding for those who can’t afford an education.  So the poor are stuck in the cycle of poverty for their entire lives.  Brazil isn’t having enough people in the workforce because these people don’t have an education, so they have to bring in foreigners. 

Student Activities

1. Research one of the major economic booms in Brazil’s history.  Explain the background of the product, when and why it was important in Brazil and why the boom ended.

2.  What would you do if you were a peasant in Brazil?  Explain how you would get food, education, shelter and where you would work.  

 Created By:  
Heather Balsom 
( Grade 8 student at École Dickinsfield School)

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