Brazil Getulio Vargas and Brazilian

Brazil

Getulio Vargas and Brazilian reform

President Getulio Vargas is often called the father of Brazil's urban poor because of his efforts to politically enfranchise this economic interest group and to industrialize the nation as a whole. As a leader, Vargas' reforms transformed 20th century Brazil from a land dominated by wealthy landowners to a more representational and democratic republic. One of Vargas' most notable acts was to create a progressive tax structure for the Latin American nation to more fairly balance the incomes of rich and poor. Yet Vargas was not a communist -- in fact, he was forced to quash a communist challenge to his authority while in power. Much like his American contemporary leader during the world's Great Depression of the 1930s, Vargas did not strive to eliminate capitalism. Rather he introduced social security, a minimum wage, and expanded centralized state controls and universal education in the nation.

In 1929, after the world economy collapsed, Brazil suffered more than most nations because of its exclusive dependence upon the cash crops of coffee and rubber. The United States raised interest rates on Brazil's loans, which further reduced the ability of the Latin American government to buy surplus coffee and keep the international price of the good artificially high. Also, the federal government of Brazil had few defined powers -- Brazil was more of a confederation than a nation. When Vargas came to power in 1930 as president Brazil still had a very weak central government. Agricultural rather than urban elements dominated the local seats of government and the nation's government depended upon the taxes from agricultural exports.

Vargas originally ran as a reform candidate, but when he was defeated, his supporters overthrew the ruling government, which was popularly elected but dominated by social and economic elites. Vargas, although he claimed to represent the interests of 'the people,' effectively ruled with unchecked authority from then onward, without needing to submit his policies for approval by the legislature. His official title was that of provisional president from 1930-1934, after which he was elected president by the constituent assembly. Vargas was challenged unsuccessfully by forces on both his left and right during this period, including a Sao Paulo-led revolt in 1932, and an attempted communist revolution in 1935, which was then followed by a fascist revolt in 1938.

After the coffee-growers of Sao Paulo were contained, Vargas drew upon his newfound authority to limit state power, prohibited Brazil's states from taxing interstate goods, and from raising armies larger than the federal army. The new constitution introduced at this time at least in theory created a democratically elected bicameral legislature and president. The first president was to be named by Congress. Of course, Vargas was chosen as President. By 1937, Vargas had set aside all pretences of governing democratically and created what he called the Estado Novo or "New State" or populist dictatorship.

Yet another paradox in the legacy of Vargas became manifest -- while before Nazi Germany had maintained a close connection with Brazil, helping to modernize the army and Brazil's industry, Vargas used his new, singular authority to turn to the United States for support. Brazil became an important supplier of raw materials to the U.S. during World War II, in exchange for American investments in Brazil's infrastructure. The U.S. helped build Brazil's first major highways, railroads, ports, and airports. This increased national prosperity and affection for Vargas. The new, government-controlled unions formed the core of his urban power base.

The United States' funding helped create Brazil's first steel mill, as well as factories that manufactured truck and airplane engines. This expanded urban employment possibilities and consolidated Vargas' power as all of these powerful enterprises were state-controlled, in contrast to the coffee exporting business that was dominated by landowners. Thus while he was not a democrat, the transformations Vargas enacted were both populist and popular, as well as in his own interest. His changes in the tax structure reformed Brazil and made it a modern nation-state, with local and state government dependant upon federal authorities rather than upon powerful local landowners and officials. For local elections, Vargas did try to enfranchise more Brazilians: the electorate was quadrupled under his regime, partially because of the enfranchisement of women. Girls now had expanded access to education, reducing the authority of husbands and fathers over their lives. Vargas introduced the secret ballot, which meant that less powerful, poorer voters did not live in fear of repercussions from local elites because of the way they voted.