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Establishing Business Unit in Brazil


"" "This form of clientelism later evolves to "Patrimonialism,"" where the landed few had their private interests projected into public policy making."" This is analogous the Southern United States where plantation owners interests - cotton, tobacco - where the basis of policy. This period tended to "consecrate the power of the local elite."" .
             The Great Depression led to the end of the landed elite as patrimonial policy makers, and eventually took its toll on The Old Republic. "The Great Depression upset the economic and political base of the Old Republic, as its product - coffee - lost demand in the world markets of the 1930's- There is a great instability within the country during this time frame. This starts the era of President Getulio Vargas.
             The ensuing years of Vargas and the Great Depression shows a Brazil with so little stability that to get Vargas elected in 1930, the military intervened with a coup. "The international economic crisis compelled several regional oligarchies to unite in opposition to the coffee and financial policies of the government. The states, including the state of Sao Paulo, divided their support between two candidates for the presidency: one, Julio Prestes, supported by President Luis, and the other, Vargas, head of the opposistion. The two states of Minias Gerias and Rio Grande do Sul voted as a bloc in favor of Vargas, but he lost in the 1930 election. Immediately after his loss, a conspiracy among discontented military and political leaders led to the coup of October 1930, which installed Vargas in Power."" .
             The Vargas regime eventually stabilized the country through strict authoritarianism. "Although the new state's constitution had fascist overtones, Vargas' policies were much inspired by the New Deal of U.S. President Franklin D. Roosevelt."" It should be noted that in the Vargas era, the military became an integral part of Brazilian politics also.


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