ABSTRACT
Brazil is one of the world's principal economies. Gross national product in 2012 ranked sixth or seventh, and population fifth. That was especially true during much of the 19th century, before income growth began to accelerate after the 1870s. During the 20th century Brazil achieved one of the highest rates of expansion among developing countries until the lost decade of the 1980s, when improvement was essentially nil. In any event, Brazilian import substitution led to increasing domestic inflation and balance of payments disequilibrium in the early 1960s. Brazilian economic strategy has been more pragmatic and rooted in an interventionist tradition. There was no miracle, but steady gains appeared not only in domestic performance, but also in the export growth of commodities, favoured by improving terms of trade. Recession in the first year could, and would, be blamed upon the inadequate policies of the Cardoso administration.
