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Bullet 4 Latin America’s responses to the Depression: Getúlio Vargas; Import Substitution Industrialization (ISI). Today’s lecture is brought to you by. Bullet 4 Latin America’s responses to the Depression: Getúlio Vargas; Import Substitution Industrialization (ISI). “An Idiot Abroad”.

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slide1

Bullet 4 Latin America’s responses to the Depression: Getúlio Vargas; Import Substitution Industrialization (ISI)

Today’s lecture is brought to you by

slide2

Bullet 4 Latin America’s responses to the Depression: Getúlio Vargas; Import Substitution Industrialization (ISI)

“An Idiot Abroad”

slide3

Bullet 4 Latin America’s responses to the Depression: Getúlio Vargas; Import Substitution Industrialization (ISI)

Pre-Depression Brazil -1

1920

slide4

Bullet 4 Latin America’s responses to the Depression: Getúlio Vargas; Import Substitution Industrialization (ISI)

Pre-Depression Brazil - 2

slide5

Bullet 4 Latin America’s responses to the Depression: Getúlio Vargas; Import Substitution Industrialization (ISI)

Effects of WWI - 3

slide6

Bullet 4 Latin America’s responses to the Depression: Getúlio Vargas; Import Substitution Industrialization (ISI)

Effects of WWI - 4

Rio de Janeiro

  • Industrialization and urbanization

Sugar cane

slide7

Bullet 4 Latin America’s responses to the Depression: Getúlio Vargas; Import Substitution Industrialization (ISI)

  • Cultural changes and unrest - 5

Workers raise the anarchist black flag during the São Paulo General Strike of 1917

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Bullet 4 Latin America’s responses to the Depression: Getúlio Vargas; Import Substitution Industrialization (ISI)

  • Political unrest - 6

President Bernardes

Washington Luis

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Bullet 4 Latin America’s responses to the Depression: Getúlio Vargas; Import Substitution Industrialization (ISI)

The Depression Begins - 7

<- Conservative Coalition

Liberal Alliance ->

Julio Prestes

Getulio Vargas

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Bullet 4 Latin America’s responses to the Depression: Getúlio Vargas; Import Substitution Industrialization (ISI)

Getulio Vargas - 8

- Attempts Valorization again

- Diversify agriculture

  • - Import Substitution Industrialization
  • Exchange controls
  • tax incentives
  • import quotas
  • lowered duties on imported machinery and raw materials
  • long term loans at low interest rates

- Result

  • Creates new industries designed to meet needs at home
  • Industrial production doubled 31-36
  • national income increases
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Bullet 4 Latin America’s responses to the Depression: Getúlio Vargas; Import Substitution Industrialization (ISI)

Getulio Vargas - 9

-1932 electoral code

  • est. secret ballot, voting age lowered to
  • 18, vote given to working women
  • still has a literacy requirement

-1934 constitution

  • Strengthens executive

Bertha Lutz

  • Article 119 Nationalization of
  • natural resources
  • Labor tribunal system
  • 86% of workers are in agriculture and their system isn’t touched

- Political decent

  • Growing Communist Party
  • National Liberation Alliance
slide12

Bullet 4 Latin America’s responses to the Depression: Getúlio Vargas; Import Substitution Industrialization (ISI)

Getulio Vargas - 10

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Bullet 4 Latin America’s responses to the Depression: Getúlio Vargas; Import Substitution Industrialization (ISI)

Getulio Vargas - 11

- Economic ties to Germany and Italy

  • Brazil has no expansionist ideals

- Direct investment in creation of industry

  • Manufacturing serves domestic market almost exclusively

- 44% of investment in Brazilian stock is from foreigners

  • 1920 there were13,336 plants
  • with 300,000 worker
  • 1941 there were 44,100 plants
  • with 944,000 workers
  • Banned strikes, but 1942
  • labor code was seen as most
  • advanced in the world
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Bullet 4 Latin America’s responses to the Depression: Getúlio Vargas; Import Substitution Industrialization (ISI)

Getulio Vargas - 12

Brazilian rubber plantation workers