Early in 1986, the situation became desperate, prodding the implementation of the plan. markets, still directs f ar too much international lending.- Until Ũ�T�UW?gc�'Cz����3�^�sM��O�n��'�I{��W�/�/_� @media (orientation: portrait) and (min-height: 641px) { The post-1964 reforms and other policies of the military government, together with the state of the world economy, created conditions for very rapid growth between 1968 and 1973. @media (min-aspect-ratio:14/9){ These countries (Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Mexico, Peru, Uruguay, and Venezuela) dismal growth rates lead to this decade being called the 'lost decade' for them. 2019. Within industry, the leading sectors were consumer durables, transportation equipment, and basic industries, such as steel, cement, and electricity generation. [11] From September 2014 to February 2015, Petrobras, the largest energy corporation in Brazil, lost 60% of its market value. The regime gradually introduced incentives to direct investment, domestic and foreign, and tackled balance of payments problems by reforming and simplifying the foreign-exchange system. In the 1980s, the world experienced a debt crisis in which highly indebted Latin America and other developing regions were unable to repay the debt, asking for help. 0000037728 00000 n This meant their productivity was far lower than people in countries who had already been using computers for one or two decades, and who had, for example, already made the transition from typing and re-typing drafts of documents on manual typewriters to simply entering print commands into word processing software. Initially, this growth was based on increased use of the productive capacity and later on moderate spurts of investment. During the Estado Novo, the government made initial attempts at economic planning, and in the late 1930s began to establish the first large government enterprise, an integrated steel mill, Companhia Siderúrgica Nacional. Finally, the military government adopted measures to attract foreign capital and to promote exports. These events, and a large foreign debt, led to an external crisis that took almost a decade to resolve. The president appointed a determined minister of finance, Fernando Henrique Cardoso, and a high-level team was put in place to develop a new stabilization plan. background-size: cover; @media (orientation: landscape) and (min-width: 641px) { In the early 1960s, Brazil already had a fairly diversified industrial structure, but one in which vertical integration was only beginning. [7] By that point, computer usage in most economic sectors in most developed countries was exceeding 90 percent. background-size: cover; In November, the International Monetary Fund and the Clinton administration announced a plan to help shore up the ailing real, with a $41.5 billion rescue package meant to contain a crisis before it became full-blown. The first two factors are classical causes of inflation; the last became an important mechanism for propagating hyperinflation and in preventing the usual instruments of inflation control from operating. Simultaneously, political instability increased sharply, with negative impacts on the economy. As a result of the period's outward-looking development strategy, Brazil's industrial exports increased from US$1.4 billion in 1963 to US$6.2 billion in 1973. The decade of the 1930s was a period of interrelated political and economic changes.