Economic Cycles in Brazil

Brazil’s economic cycles refer to the economic activities that were developed in the country at different times.Check out the main Brazilian economic cycles below.

Brazilwood Cycle

Cultivated during the pre-colonial period (1500-1530), the brazilwood cycle was the first to emerge in the country, with the arrival of the Portuguese.

At the time, they were searching for precious metals in the newly discovered lands. However, as they did not find any quickly, they began to realize the importance of this plant native to the Atlantic Forest, used to dye fabrics and with great value in the European market.Brazilwood

In light of this, the Portuguese began to negotiate with the Indians using barter, that is, in exchange for cutting and transporting wood, the Portuguese offered them objects and weapons unknown to the Indians. Later, they enslaved the Indians to become even richer.

However, the wood that had been overexploited began to show signs of extinction. In addition, sugar already had great value on the European market.

Thus, it was the end of the brazilwood cycle to begin the sugarcane cycle, which was already cultivated by them in other regions of the world.

Sugarcane Cycle

The sugar cane cycle was the second economic cycle developed during colonial Brazil. It was a product valued in the European market and the Portuguese were already planting sugar cane in other places and, therefore, had planting techniques.Sugar Cane

During this period, African slave labor was already being used, since the Indians were affected by various diseases and those who survived this exploitation tried to escape. As they knew the territory much better, the Portuguese had difficulty finding them.

This is how the slave trade and the transportation of African slaves began. Sugar was the main export product at that time. The main characteristics of the sugarcane cycle are:

  • Plantation System
  • Monoculture
  • Latifundia
  • Use of slave labor
  • Aimed at the foreign market

Gold Cycle

The gold or mining cycle began at the end of the 17th century when the Portuguese discovered several deposits of the mineral. This occurred mainly in the state of Minas Gerais, reaching its peak in the 18th century.

In addition to Minas, gold deposits were also found in the states of Goiás and Mato Grosso.

Gold

This was a period of peak colonial economic growth. The Portuguese, who were already suffering from global competition from sugar, began to invest in the extraction of minerals because they believed in economic stability.

This economic boom generated wealth for the metropolis, which sent all its gold to Europe. During this period, there was also a considerable increase in the country’s population. The gold cycle ended at the end of the 18th century when the country’s mines were exhausted.

The Inconfidência Mineira (1792) was one of the important movements that occurred during the Gold Cycle, which had as its main objective the liberation of the colony.

Cotton Cycle

With the exhaustion of the country’s gold mines, cotton (called “white gold”) became one of the main export products from the 18th century and early 19th century

With the advent of the Industrial Revolution in England and the need to obtain raw materials for the textile industry, cotton began to play a leading role in the country’s economy.

This phase is called the “Agricultural Renaissance” since many tropical products began to be cultivated simultaneously throughout the country, with the aim of supplying the European foreign market.

One of the determining factors was the growth of the European population during this period and, consequently, the increase in the consumption of tropical products.

Coffee Cycle

Coffee (also called “black gold”) was one of the main export products when the first seedlings of the plant arrived in the country. This happened in the mid-18th century, and this period reached its peak in the 19th century.

The west of São Paulo and the Paraíba Valley region were the main areas of cultivation, given the favorable soil present: terra roxo.

Coffee

This economic period began with the decline in sugarcane exports. Although slave labor was used at the beginning of coffee cultivation, many immigrants, especially Italians, arrived in the country to work on the plantations (in the monoculture system).

At the end of the 19th century, Brazil exported more than 50% of the product for global consumption.

Rubber Cycle

During this period, latex was the main export product, which was used for the production of rubber.

This economic cycle was developed in the northern region of the country, mainly in the cities of Manaus (Amazonas), Porto Velho (Rondônia) and Belém (Pará).

Likewise, the rubber cycle is directly linked to the occupation and subsequent purchase of the territory of Acre by Brazil, as there were many rubber plantations there.

Latex Extraction

It covered the period between 1890 and 1920, being divided into two phases: from 1879 to 1912 (first rubber cycle), and between 1942 and 1945 (second rubber cycle).

In the first phase, the main impetus for the production of this product, extracted from rubber trees, was the advent of the English Industrial Revolution, which required more raw materials for the manufacture of products. During this period, around 40% of all Brazilian exports came from the Amazon.

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