David Yang | IB History [1] | Modern Latin America Vargas Notes Brazil: Development for Whom? Getúlio Vargas and the Estado Novo Brazi Brazill was was hit hit hard hard by by the the world world econom economic ic cras crash h in 1929 1929 o Coffee exporters suffered a huge drop in foreign exchange earnings as growers became stuck with an unsellable harvest. Instead of aiding the most important commodity in the economy, President Washington Luís instead pleased foreign o creditors by maintaining convertibility convertibility of the currency (mil reis). As material supply and thus convertibility became exhausted, the government fell into an aggravated balance-ofo payments crisis. crisis. In this critical moment, the government had decided to use an economic policy that had no support from the o Brazilian society. Unsurpri Unsurprisingl singly, y, Washing Washington ton Luís’ Luís’ss term term was was soon ended by the the militar military, y, as in 1889 1889 o An opposition movement formed around Getúlio Vargas, a politician of Rio Grande whose bid at presidency had been denied by Luís’s Luís’s political political machine Instead of challenging the political system, Vargas’s presidential campaign ran strictly from within the elite. His supporters composed dissenting factions in several states; outsiders anxious at a chance at power. Thus, it was only after the election that a successful conspiracy arose among the disgruntled of politicians and officers. The coup of October 1930 was not really a ‘revolution’ o The top military commanders deposed Luís, replacing him with Vargas The cabinet invoked revolutionary power to take the ad hoc steps required. Though some officers wished to keep power after deposition, the three commanders all transferred power to Vargas after 4 days With military intervention, the armed conflict never reached a climax. Withou Withoutt a legisl legislatu ature, re, Vargas Vargas gover governed ned by dec decree ree.. Vargas swiftly replaced state governors with the exception of Minas Gerais o These new “interventors” reported directly to the president. The level of activism adopted by the government often threw the state machines off balance, giving benefit to the dissenting factions, most of them having aided Vargas in 1930. Political rivalries rivalries within states were now being settled by decisions in Rio. Political forces in São Paulo were realigned o As Vargas’s interventor had proved inept and tactless, drawing the anger of the paulistas, the city united against Vargas using state loyalty. Leaders demanded a constituent assembly that would write a new constitution, and dissention erupted into armed rebellion in 1932. After four months of standstill combat in the Constitutionalist Revolution, the rebels surrendered because they were surrounded. The cause of decentralized government was further discredited, favoring once again centralization in Rio de Janeiro. The tenente, or army lieutenant, movement was disintegrated. o As the young military officers never achieved a cohesive organization, they split as some joined Vargas. The remnants (October 3rd Club), focusing on radical social changes, were isolated and vulnerable; they were soon raided by the police and disintegrated. Meanwhil Meanwhile, e, Vargas Vargas stren strengthe gthened ned his his network network of politi political cal allie alliess and collabora collaborators tors.. In the constituent assembly of 1933-34, his success was clearly shown. o State autonomy was reduced; they were no longer allowed to tax goods shipped interstate The bicameral legislature remained, to be directly elected. Nationalist measured measured appeared for for the first time, restricting restricting foreign ownership ownership of land and alien participation in in professional occupations. occupations. The constitution confirmed that the revolution of 1930 had grown beyond simply elite infighting, most importantly importantly o electing Vargas as the first president under it. 1934 signif signified ied the the start start of of one of the the most most agitate agitated d periods periods in its political political history. history. o Two national and highly ideological movements arose, both committed to mass mobilization Integralism – rightist movement with affinities to European fascist parties • Founded in late 1932 and leg by Plínio Salgado, their membership rapidly grew by 1935. • Their dogma was Christian, nationalist and traditionalist, and their style was paramilitary. • Middle-class, they drew support from military officers, especially those in the navy.
David Yang | IB History [1] | Modern Latin America Vargas Notes Unbeknownst to the public, Integrality were financed in part by the Italian embassy. National Liberation Alliance ( Aliança Libertadora Nacional or ALN) – popular front movement launced in 1935. Appeared as a coalition of socialists, communists and other radicals, but was actually run by the Brazilian Communist Party carrying a strategy formulated by Mosciw. First stage was to mobilize on conventional lines; rallies, local offices, and fund-raising efforts to forge a broad coalition on the left in opposition to Vargas, Integralism, and Liberal Constitutionalists. By mid-1935, politics had reached a fevered pitch o Integralists and the ALN were feeding off of each other as brawls and terrorism increased. Brazil’s major cities began to adopt the appearance of Berlin of 1932-33 in its Nazi-Communist battles. The ALN was far more vulnerable than the Integralists in their opposition of Vargas; the government soon targeted them. The communists replied with the second stage of their strategy: a revolution triggered by a barracks revolt Starting in November 1935 in the northeastern state capital of Natal, it spread to Recife and Rio in days. However, though Natal was controlled for days, rebels in Recife and Rio did not have the element of surprise and thus was quickly contained. Seeing a perfect opportunity to revoke normal constitutional guarantees, Vargas imposed a crackdown on the entire left. The Integralists became elated as their chief rival became eliminated. Smelling power, they expected Vargas to logically favor their party. Their illusion was broken in two years; though the Integralists were convinced that they would receive presidential-level power by 1938, Vargas had other plans. On November 10, 1937, Vargas read the text of another constitution over the radio to a nation that witnessed another military intervention. The Congress had been dissolved, its premises occupied by soldiers. o Brazil entered the Estado Novo, a hybrid of Salazar’s Portugal and Mussolini’s Italy that dissolved all democratic o hopes and replacing them with authoritarianism. Though Brazil’s change into dictatorship in 1937 was fitting, they lacked the mass mobilization typical of other o fascist governments. Many thought the Integralists to play that role for Brazil. In 1937, Integralists discussed not government involvement but the terms of involvement, playing into Vargas’s own game. Salgado rejected Vargas’s offer of a cabinet post, thinking that he could hold out for more. By 1938, the government had banned all paramilitary organizations, obviously targeting Integralists. Integralists organized an armed assault on the presidential residence in February. Began in early morning hours with a shoot-out and a standoff at the gates o Army units easily won by dawn, arresting remaining Integralist besiegers. o The government proceeded to crack down, destroying the Integralist movement. Vargas could now survey a political scene without any organized opposition. o During the coup. Vargas committed to another presidential term until the elections at 1943, but few believed his commitment due to his abortion of the 1938 election. Once 1943 arrived, Vargas proceeded to put elections below wartime emergencies, remaining president until October 1945. Significance of Vargas’s rule [1937-1945] Vargas and collaborators attained a free hand in maneuvering Brazil to maximize its advantage in a capitalist system o moving towards war. Important questions: Who could help the Brazilians in modernizing and equipping themselves? Who would offer the o most favorable conditions in foreign trade? Before the coup of 1937, Nazi Germany fulfilled both criteria – however, having adopted Allies in WWI, it was a dangerous choice Meanwhile, the U.S. spared no effort in bringing Brazil into U.S.’s hold, succeeding after strenuous effort and German failure. Brazil became a vital cog in the Allied war machine, furnishing raw materials and air/naval bases critical in the Battle of the Atlantic. Vargas gained much from the United States o •
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David Yang | IB History [1] | Modern Latin America Vargas Notes Brazil attained the construction of a network of air and naval installations along the northern and northeastern Atlantic coast. The U.S. also promised to help finance construction of Brazil’s first large-scale steel mill – the first time that the American government committed public funds to industrialization in the developing world. The Estado Novo gave a centralized apparatus through which Vargas and his aides could pursue economic development and organizational change. Adopting an aggressive role in the economy, the federal government organized and strengthened marketing cartels and created new states enterprises. Vargas also changed the federal bureaucracy, creating a merit-oriented system to replace patronage-ridden structure. A new labor code of 1943, spelling out rules of industrial relations to last until the 1990s. Only one union per plant – each under the scrutiny of the labor ministry controlling union finances and elections. Unions became tied to the government, benefiting personally those union leaders who cooperated. This union structure was matched by a similar employer structure, giving the federal executive a mechanism for controlling the economy. However, Brazil was not a modern, industrialized, urbanized society and thus the country remained mostly untouched. A darker side of the Estado Novo appeared in the free hand given to security forces. Torture was routine against both subversives and foreign agents Censorship covered all media, with a government news agency controlling the news. Despite similarities, Brazil did not approach German and Italy’s extremes. Brazil’s economic history Coffee continued to be the primary foreign exchange earner, helped during wartime by other raw materials Industrial growth continued in São Paulo and the Rio. War cut off trade with Europe, with most of it shifting to the United States Vargas’s political manipulation Though he promised elections in 1943 without his eligibility, Vargas became aware of a wave of democratic opinion and attempted to create a new image for the Estado Novo. Adopting a new, populist stance after 1943, Vargas moved government attention towards the urban working class and the creation of a Labor Party. With the defeat of fascism at 1945, Vargas worked to separate the contrast between Europe and Brazil. In May 1945, with the defeat of the Axis a foregone conclusion, the government issued a tough antimonopoly decree restricting foreign firms in the Brazilian economy. As Vargas turned towards populism, the U.S. government marked him for one of the presidents who ‘had to go’. Many Brazilians, including the Liberal Constitutionalists agreed with the U.S. view. Liberal Constitutionalists welcomed foreign capital, also seeing the issue as one that might grant them the power that was denied them in 1937. Vargas consistently shifted towards the left In early 1945, he released leftist political prisoners, including Luís Carlos Prestes, leader of the Brazilian Communist Party. Relaxation of police control helped the Communist Party, the best-organized left party. Polarization accelerated as the year went on, creating the gap between Liberal Constitutionalists, military officers and state political bosses and populists, labor union leaders, socialists, Trotskyite, and communists. In October 1945, the army gave Vargas an ultimatum: resign or be deposed. He refused and was declared deposed, and then he acceded, flying to a self-imposed exile on his ranch in Rio Grande do Sul.
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