BRAZIL AND GETULIO VARGAS
Getulio Vargas first came to power following a revolution in 1930. This revolution was powered by popular resentment of the traditional elites who were based in Sao Paolo, and the effects of the Great Depression. Vargas was able to skillfully thread together a coalition of members of the bourgeoisie who were opposed to the politics of
cafe con leite
(i.e. pro-coffee growers and anti-industrialization), industrialists and working class.
He reached the peak of his power by 1937, with the introduction of a constitution which handed him authoritarian powers and created the Estado Novo (New State).
Vargas was President of Brazil between 1930 and 1945, and between 1950 and 1954.
Vargas' Rise to Power
Following his installation as interim president in 1930, he introduced a program of valorization to burn excess coffee beans and control prices. Not only did this reduce Brazilian dependence upon coffee exports, but it also raised funds to begin pro-industrialist policies. Following the fanning of popular fears of a communist revolution, a new constitution which granted Vargas authoritarian powers and created the Estado Novo.
How did he maintain power?
Fear
Like Peron, Vargas also embraced some of the methods of the European fascist leaders. Initially this began with increasingly harsh rhetoric regarding his critics and opponents, banning strikes, and attacking journalists. One journalist that was the victim of an assassination attempt was Carlos Lacerda, editor of a right-wing newspaper and a consistent critic of Vargas. When it was discovered that the gunman was working for Vargas' head of personal security and that there were close links between the assassination attempt and Vargas, it precipitated the end of the Vargas regime.
Gain
Vargas pursued a combination of pro-big business and populist economic policies. This were largely successful. The ISI policies helped to boost industrial output to 6% on an annual basis and tripled the size of the industrial workforce over a 20 year period. Brazil became an attractive place to do business- 44% of spending on Brazilian infrastructure came from overseas investors.
In 1940, Vargas introduced a Five Year plan which aimed to develop heavy industry and new sources of hydroelectric energy. Additional infrastructure projects initiated included:
In addition, Vargas earned the nickname of 'Father of the Poor' by ending price and wage controls in order to raise earnings.
Belief
For a long time, Vargas had managed to walk a tightrope of appearing to be all things to large sections of the Brazilian people. The corporate nature of Estado Novo certainly appealed to industrialists, while his label of being the "Father of the Poor" appealed to workers. Moreover, he skillfully exploited popular resentment of the Paulista s from many regions of the country. Combined with a period of sustained economic growth, it was no wonder that Vargas' retained a popular appeal for much of his first stint as president between 1930 and 1945.
Vargas was removed from power by the military in 1945. During the 1940's, various secret societies and opposition groups began to emerge. For example, a Women's Committee campaigned for women's rights and Afro-Brazilians (long marginalized by Vargas) used cultural expression as a source of resistance- especially Samba music and dancing which Vargas ardently disliked. Eventually the hypocrisy of fighting fascism abroad and using fascist tactics at home was too much for ordinary Brazilians to ignore. Recognizing political realities, Vargas announce the first free and open elections for a decade in 1945. Rather than allow Vargas to run for office again, the military removed him from power (they were ready to embrace a pro-right wing, pro-American and pro-capitalist agenda). In the ensuing election, General Dutra won the presidency.
Unfortunately for Dutra, while he introduced free market policies that attracted great foreign investment (while simultaneously curbing inflation by restricting credit, cutting social benefits and freezing wages), he mismanaged government spending. While he was able to add to existing infrastructure, including the building of 4000 new rural schools, the economy slumped when money ran out. By 1950, Vargas was ready to return to the front line of Brazilian politics.
Vargas's second presidency was not as successful as the first, while he added Electrobras as a state-owned enterprise, he had inherited a bankrupt economy and struggled to deal with labor unrest. He found himself increasingly caught between the conservative leanings of the military and the left-wing demands of the workers over issues such as raising the minimum wage. His presidency ended in 1954 over the Carlos Lacerda affair. Instead of agreeing to his military's demands to resign, he committed suicide instead.
How did he lose power?
Vargas ran into many of the same issues as Peron- he could not continue to use the same populist tactics to both win power and then govern. Increasingly, he found himself caught between competing interests, and as the international climate changed following the transition from World War II to the Cold War, he was unable to adjust accordingly.
He reached the peak of his power by 1937, with the introduction of a constitution which handed him authoritarian powers and created the Estado Novo (New State).
Vargas was President of Brazil between 1930 and 1945, and between 1950 and 1954.
Vargas' Rise to Power
- The Brazilian system of democracy was not meeting the challenges posed by the Great Depression. Brazil had a mono-cultural economy, based on the coffee industry, whose interests dominated Brazilian politics. As a result of international trade declining due to protectionism, Brazil's economy has especially hit hard. However, the Paulistas (coffee-growing elite based in Sao Paulo state) continued to dominate. Prior to the 1930 election, incumbent President Washington Luis (who was not running for re-election) attempted to control the election and ensure power passed to another Paulista (Julio Prestes).
- There continued to be significant economic problems that had been exaggerated by the Great Depression. Brazil had a mono-cultural, agrarian economy, based on coffee, while policies that would diversify the economy and introduce greater industrialization were ignored. In addition to the collapse of the the international coffee market, Brazil had high levels of foreign debt.
- As a result, there were large social divisions. There was great resentment towards the Paulistas from industrialists, middle classes not residing in Sao Paulo, and the working class.
- There were fears that these socio-economic conditions would lead to a state of anarchy. Following the contentious 1930 election and the assassination of another leading political figure, the army seized power in a bloodless coup and Vargas was initially installed as an interim president.
- Vargas managed to introduce pro-corporatist policies that challenged the power of the traditional Paulista elites. After 1934, following the success of Vargas' economic reforms and the rise of fascism in Europe, Vargas' regime became more authoritarian in nature.
- Vargas also successfully used economic nationalism to galvanize support for his policies. These policies can best be summed up by Import-Substitution Industrialization (ISI), which imposed a combination of protectionist measures and economic stimulus to reduce reliance on overseas imports and boost domestic industry,
Following his installation as interim president in 1930, he introduced a program of valorization to burn excess coffee beans and control prices. Not only did this reduce Brazilian dependence upon coffee exports, but it also raised funds to begin pro-industrialist policies. Following the fanning of popular fears of a communist revolution, a new constitution which granted Vargas authoritarian powers and created the Estado Novo.
How did he maintain power?
Fear
Like Peron, Vargas also embraced some of the methods of the European fascist leaders. Initially this began with increasingly harsh rhetoric regarding his critics and opponents, banning strikes, and attacking journalists. One journalist that was the victim of an assassination attempt was Carlos Lacerda, editor of a right-wing newspaper and a consistent critic of Vargas. When it was discovered that the gunman was working for Vargas' head of personal security and that there were close links between the assassination attempt and Vargas, it precipitated the end of the Vargas regime.
Gain
Vargas pursued a combination of pro-big business and populist economic policies. This were largely successful. The ISI policies helped to boost industrial output to 6% on an annual basis and tripled the size of the industrial workforce over a 20 year period. Brazil became an attractive place to do business- 44% of spending on Brazilian infrastructure came from overseas investors.
In 1940, Vargas introduced a Five Year plan which aimed to develop heavy industry and new sources of hydroelectric energy. Additional infrastructure projects initiated included:
- CVRD- responsible for mining iron ore deposits
- Petrobras- or National Petroleum Company
- National Steel Company
- National Motor
In addition, Vargas earned the nickname of 'Father of the Poor' by ending price and wage controls in order to raise earnings.
Belief
For a long time, Vargas had managed to walk a tightrope of appearing to be all things to large sections of the Brazilian people. The corporate nature of Estado Novo certainly appealed to industrialists, while his label of being the "Father of the Poor" appealed to workers. Moreover, he skillfully exploited popular resentment of the Paulista s from many regions of the country. Combined with a period of sustained economic growth, it was no wonder that Vargas' retained a popular appeal for much of his first stint as president between 1930 and 1945.
Vargas was removed from power by the military in 1945. During the 1940's, various secret societies and opposition groups began to emerge. For example, a Women's Committee campaigned for women's rights and Afro-Brazilians (long marginalized by Vargas) used cultural expression as a source of resistance- especially Samba music and dancing which Vargas ardently disliked. Eventually the hypocrisy of fighting fascism abroad and using fascist tactics at home was too much for ordinary Brazilians to ignore. Recognizing political realities, Vargas announce the first free and open elections for a decade in 1945. Rather than allow Vargas to run for office again, the military removed him from power (they were ready to embrace a pro-right wing, pro-American and pro-capitalist agenda). In the ensuing election, General Dutra won the presidency.
Unfortunately for Dutra, while he introduced free market policies that attracted great foreign investment (while simultaneously curbing inflation by restricting credit, cutting social benefits and freezing wages), he mismanaged government spending. While he was able to add to existing infrastructure, including the building of 4000 new rural schools, the economy slumped when money ran out. By 1950, Vargas was ready to return to the front line of Brazilian politics.
Vargas's second presidency was not as successful as the first, while he added Electrobras as a state-owned enterprise, he had inherited a bankrupt economy and struggled to deal with labor unrest. He found himself increasingly caught between the conservative leanings of the military and the left-wing demands of the workers over issues such as raising the minimum wage. His presidency ended in 1954 over the Carlos Lacerda affair. Instead of agreeing to his military's demands to resign, he committed suicide instead.
How did he lose power?
- Vargas was unable to continue to consolidate competing economic interests. This was especially true during his second presidency, when conservative elements in the military become more emboldened. Moreover, the Brazilian economy had to deal with greater competition in terms of trade once World War II ended.
- His fascist treatment of opponents troubled many Brazilians.
- His economic policies alarmed the USA. His left-wing policies and government economic intervention were viewed increasingly suspiciously.
Vargas ran into many of the same issues as Peron- he could not continue to use the same populist tactics to both win power and then govern. Increasingly, he found himself caught between competing interests, and as the international climate changed following the transition from World War II to the Cold War, he was unable to adjust accordingly.