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social conditions rooted in the nation’s early years as a plantation society con-
tinue to cause inequalities in wealth and power. A small and wealthy
elite
still
controls most of the land and resources while millions of Brazilians live in
poverty, especially in rural areas.
Moving from a Single-Commodity Economy
Until the beginning of the 20th century, the Brazilian economy
depended to a great extent on the production and export of a single
commodity—although the specific
commodity
changed over time. In the first
years of Portuguese colonization, the commodity was brazilwood. Then, in
the 16th and 17th centuries, sugarcane became Brazil’s primary source of
wealth. Precious metals (gold and silver) and gems (diamonds and emeralds)
replaced sugarcane in the 18th century. Finally, in the 19th century, coffee
became the country’s key export. Meanwhile, agriculture and cattle raising
had developed for local markets inside Brazil.
A first surge of industrialization took place during the years of World
Brazil
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capital—
investment money.
commodity—
any economic good, such as an agricultural or mining product.
elite—
a group enjoying privileged or superior status.
gross domestic product (GDP)—
the total value of all the goods and services produced
by a nation in a one-year period.
Words to Understand in this Chapter