Pressures On Brazil
The economic pressures faced by Brazil
Published on: Mar 4, 2016
Transcripts - Pressures On Brazil
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