Brazil and the Great Depression
- Created by: Beth Ismay
- Created on: 13-03-14 12:10
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- Brazil and the Great Depression
- 1920s
- Dependent on agriculture, particularly coffee
- Coffee exports over 70% of revenue
- Sao Paulo Institute for Permanent Defense of Coffee created in 1925
- Institute purchased and withheld goods from the global market to keep prices high
- Limited Brazil's dominance of the international market
- In 1927, all time high 27 million coffee bags produced and Institute prevented a price fall by buying the bags when the global coffee price fell
- Foreign debt was $900 million and $175 million per year of loan repayments were paid out
- May 1929 world coffee price fell fast whilst Brazil had a huge surplus
- Weakened Brazil's economic standing
- May 1929 world coffee price fell fast whilst Brazil had a huge surplus
- Dependent on agriculture, particularly coffee
- Brazil after the Wall Street Crash
- Devastating impact on export economy
- In Sept 1929 coffee sold at 22 cents per pound, Dec 1st had fallen to 15 cents
- Sao Paulo faced bankruptcy and pleas for government assistance was denied by President Washington Luis
- His unwillingness to help increased resentment
- Shop owners reported 40% sales decline in Dec 1929
- Prestes won the March 1930 elections
- 29 million coffee bags were produced and prices dropped again
- Coffee prices fell to 10 cents per pound and debt increased to $1,181 million
- 29 million coffee bags were produced and prices dropped again
- Landless laborers were not paid and faced starvation
- Led to urban migration
- Devastating impact on export economy
- Vargas
- Oct 24 1930 a revolutionary junta was formed
- Nov 4th Vargas was installed as provisional president
- 1937 Estado Novo created
- National Department of Coffee created
- Coffee tree planting reduced from 3 billion to 2.5 billion
- 1939 60 million coffee bags burned
- Cotton production rose from 2% to 18% of exports
- Led to increasingly diversified economy
- Cotton production rose from 2% to 18% of exports
- Oct 24 1930 a revolutionary junta was formed
- 1920s
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