IMPACT OF COLONIALISM

1. IMPACT OF COLONIALISM BRAZIL

2. Key concepts 1. Impact of colonisation on the economic development of a developing economy. 2. Explain how a developing country has adjusted to the global economy after colonisation.  Globalisation

3. What was colonisation? • Colonisation led to the exploitation of large areas of the world in the interests of a small number of powerful countries. • A colony was a place or region that was conquered and ruled by another country. • Neo-colonialism is the process of economic dominance and political influence over independent developing countries by former colonial powers.

4. colonisation

5. Why colonise? • To control and exploit raw materials and food produce of colonies, which were vital to supply the growing economies and populations of colonial powers. • To provide markets for goods manufactured by the colonial power. • To increase the importance and wealth of colonial powers.

7. Case study: brazil • Population – 193 million (203 million est. July 2011) • Population density - only 22 people per km2 • Young people – 2/3 of population are under the age of 30 • Birth rate – 18.83 births per 1,000 population • Death rate – 6.35 per 1,000 population • Life expectancy – 72.6 years average • 60% of the population live in poverty (huge inequalities) • Average income per capita in 2009 was €2,237. However over 40 million live on less than €1 per day • Favelas (Brazilian shanty towns) are found around all of the major urban areas • Official language is Portuguese, with 163 indigenous languages • Governed similar to USA –26 states and one federal district  Brasilia • 5th largest country in the world

8. Brazil

9. Colonialism and trading patterns • Brazil’s main function was to export its raw materials and unprocessed agricultural products to Portugal and other European countries. • Brazil wood – first raw material to be exported • Sugar cane – exported in 16th and 17th centuries from plantations in north-east • Coffee – in 1958 70% of Brazil’s exports consisted of coffee beans • Rubber – from 1850 it was collected from the Amazon River basin

10. After colonialism: adjusting to the global economy • Even after independence in 1822, the trading pattern was neo-colonial – Brazil still exported raw materials to Portugal and other European countries. • Concentration on raw materials meant that manufacturing and services were underdeveloped. • In the 1950s the government introduced its Import Substitution Industrialisation (ISI) policy.

11. Import substitution industrialisation (isi) • Industries were developed to supply the goods Brazil used to import. • Brazil changed from being dependent on exports of raw materials to being an exporter of manufactured goods. • Govt. introduced policy of protectionism – placed tariffs and bans on imported goods. • More expensive • Economic advantage for Brazilian industries • Brazilian ‘economic miracle’ – 1960’s and 1970’s as the economy grew rapidly. • Establishment of semi-state bodies – develop mineral resources • Multinational corporations – Volkswagon, Ford, Shell etc. • Private investment and capital – private industries

12. Change in trading patterns During colonialism and for many decades after, Brazil had a limited number of trading partners. The ISI allowed Brazil’s industry to supply its own market and therefore it did not need to trade with other nations. Since the 1970s, three events impacted greatly on Brazilian trading. • 1970’s Oil Crisis • The Debt Crisis • Formation of the Mercosur/ Mercosul Trading Group

13. 1. 1970S Oil Crisis-Shift no.1 to being export oriented • Heavily dependent on cheap imported oil • When oil prices rose, Brazil could not afford to pay for the oil it without increasing exports. • A new drive to increase trade with Argentina and other South American countries began. Result: Brazil became more integrated into international trade and investment flow of money.

14. 2. The debt crisis-Shift no.2 to being export oriented • Brazil was ruled by the military from 1964 until 1985. • The govt. introduced the ISI programme at the expense of massive international debt. • Initially, during the ISI phase, the wasteful spending and massive government loans were not too obvious. • During the export focused expansion, the loans and debt became a very significant issue. • By 1985, the debt was very significant and the government was unable to repay the climbing interest payments.

15. Structural adjustment programme -SAPs • The International Monetary Fund (IMF) forced Brazil to undergo a Structural Adjustment Programme (SAP). • This ‘encouraged’ the expansion of the economy through increased exports. • The increased exports led to the development of cash crop agricultural expansion – crops such as soya were grown for export at the expense of staple food for the people. • There were also extensive cutbacks in health care and education. • Today, the IMF continues to apply stringent conditions to any loans to Brazil.

16. 3. Mercosur trading group-Shift no. 3 to being export oriented • After Military Rule ended in 1985 and Brazil began to focus on exports, it began to also remove trade barriers, making it a more open economy. • In 1991, Brazil, Argentina, Paraguay and Uruguay formed the Mercosur, the Southern Common Market. • Later Chile and Bolivia became associate members. Venezuela has applied to join. • Almost totally free circulation of goods and services between member countries has gradually been achieved. • A common external tariff exists for importing goods from non-members. • This opened up new export and import markets for Brazil. • Brazil’s other major trading pattern is the E.U.

17. Mercosur Trading group

18. Recap on regional notes • Using Regional Geography notes • Describe Brazil’s economy TODAY • Exports • Key manufacturing areas • Development of tourism • Population, poverty/ inequality, migration patterns, education