Brazil’s economic pressures

In the 1970's five main pressures created huge

debts for Brazil.

Oil prices rose

Brazil’s import bill increased as it tried to fuel growing industry.

Oil rich countries had money to lend

Brazil borrowed from these rich countries.Brazil also borrowed from the World Bank.

Debt servicing

Export profits have had to be used to pay interest on international debts (from loans)

Prices for Brazil's exports fell

The main products were coffee, foodstuffs.This meant that Brazil got less income.

The International Monetary Fund

The IMF pressured Brazil to change their economy, giving the government targets to reduce spending and borrowing (called Structural Adjustment Policy)

Consequences of these pressures:

Debt repayment forced exploitation of Brazil’s natural resources:the rainforest, Fast flowing rivers, mineral wealth beneath the surface e.g gold, iron, bauxite, copper, manganese, land available for creating estate farming cash crops