Brazil's Economic And Political Future

As in other Latin American countries that have returned to democracy this decade after bitter experiences under military regimes, Brazil's "New Republic" came to power with wide public support. The 1985 transfer of power from the military to the politicians went smoothly. The political and labor climate was relatively calm. The productive base of the economy was solid and business sectors wanted to give democracy a chance. Brazil had a foreign debt of over $100 billion, but huge trade surpluses made foreign creditors willing to refinance the debt. Under these circumstances the transition did not have to go badly. But it has.