Estado Novo (Brazil)

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Vargas Era is the period in the history of Brazil that lasted from 1930 to 1945, when the country was under the leadership of Getúlio Dornelles Vargas.

The Brazilian Revolution of 1930
Brazilian Revolution of 1930
The Revolution of 1930 was a movement that overthrew President Washington Luís and installed Getúlio Vargas as Provisional President.-See also:*Revolutions of Brazil*History of Brazil...

, that marked the end of the Old Republic (with the deposition of President Washington Luís; the abrogation of the country's 1891 Constitution with a view to the establishment of a new constitutional order; the dissolution of the National Congress; Federal intervention in State governments and the alteration of the political landscape, with the suppression of the hegemony until then enjoyed by the oligarchies of São Paulo and Minas Gerais), signals the beginning of the Vargas Era (given that, upon the triumph of the Revolution, a provisional military junta ceded power to Vargas, recognized as the leader of the revolutionary movement).

The Vargas Era comprises three successive phases: the period of the Provisional Government (1930–1934), when Vargas governed by decree as Head of the Provisional Government; the period of the Constitution of 1934 (when, in the wake of the adoption of a new Constitution by the Constituent Assembly of 1933–34, Vargas – elected by the Constituent Assembly under the transitional provisions of the Constitution – governed as President, alongside a democratically elected Legislature); and the Estado Novo period (1937–1945), that begins when, in order to perpetuate his rule, Vargas imposes a new, authoritarian Constitution in a coup d'etát, and shuts down Congress, assuming dictatorial powers.

The deposition of Getúlio Vargas and his Estado Novo regime in 1945 and the subsequent redemocratization of the country with the adoption of a new Constitution in 1946 mark the end of the Vargas Era and the beginning of the period known as the Republic of 46.

Great Depression


The tenente rebellion did not mark the revolutionary breakthrough of Brazil's bourgeois social reformers. But the ruling paulista coffee oligarchy could not withstand the near-breakdown of world capitalism
Capitalism
Capitalism is an economic system that became dominant in the Western world following the demise of feudalism. There is no consensus on the precise definition nor on how the term should be used as a historical category...

 in 1929. Brazil's vulnerability to the Great Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...

 had its roots in the economy
Economy
An economy consists of the economic system of a country or other area; the labor, capital and land resources; and the manufacturing, trade, distribution, and consumption of goods and services of that area...

's heavy dependence on foreign market
Market
A market is one of many varieties of systems, institutions, procedures, social relations and infrastructures whereby parties engage in exchange. While parties may exchange goods and services by barter, most markets rely on sellers offering their goods or services in exchange for money from buyers...

s and loans. Despite limited industrial development in São Paulo
São Paulo (state)
São Paulo is a state in Brazil. It is the major industrial and economic powerhouse of the Brazilian economy. Named after Saint Paul, São Paulo has the largest population, industrial complex, and economic production in the country. It is the richest state in Brazil...

, the export
Export
The term export is derived from the conceptual meaning as to ship the goods and services out of the port of a country. The seller of such goods and services is referred to as an "exporter" who is based in the country of export whereas the overseas based buyer is referred to as an "importer"...

 of coffee
Coffee
Coffee is a brewed beverage with a dark,init brooo acidic flavor prepared from the roasted seeds of the coffee plant, colloquially called coffee beans. The beans are found in coffee cherries, which grow on trees cultivated in over 70 countries, primarily in equatorial Latin America, Southeast Asia,...

 and other primary products was still the mainstay of the economy.

Days after the U.S. stock market
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...

 crash on October 29, 1929 (See Black Tuesday), coffee quotations immediately fell 30% to 60%. The subsequent decline was even sharper. Between 1929 and 1931, coffee prices fell from 22.5 cents per pound to 8 cents per pound. As world trade contracted, the coffee exporters suffered a vast drop in foreign exchange earnings. The Great Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...

 possibly had a more dramatic effect on Brazil than on the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

.

The collapse of Brazil's valorization (price support) program, a safety net in times of economic crisis, was strongly intertwined with the collapse of the central government, whose base of support resided in the landed oligarchy. The coffee planters had grown dangerously dependent on government valorization. For example, in the aftermath of the recession following World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...

, the government was not short of the cash needed to bail out the coffee industry. But between 1929–30, world demand for Brazil's primary products had fallen far too drastically to maintain government revenues. By the end of 1930, Brazil's gold
Gold
Gold is a chemical element with the symbol Au and an atomic number of 79. Gold is a dense, soft, shiny, malleable and ductile metal. Pure gold has a bright yellow color and luster traditionally considered attractive, which it maintains without oxidizing in air or water. Chemically, gold is a...

 reserves had been depleted, pushing the exchange rate
Exchange rate
In finance, an exchange rate between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency...

 down to a new low. The program for warehoused coffee collapsed altogether.

Washington Luís Pereira de Sousa
Washington Luís Pereira de Sousa
Washington Luís Pereira de Sousa was a Brazilian politician. His family was of Portuguese Romani descent. He was born in Macaé, Rio de Janeiro, and moved to São Paulo, where he became a lawyer. Elected governor of São Paulo state in 1920 and president of Brazil in 1926, Washington Luís was the...

's government faced a deepening balance-of-payments crisis and the coffee growers were struck with an unsellable harvest. Since power ultimately rested on patronage
Patronage
Patronage is the support, encouragement, privilege, or financial aid that an organization or individual bestows to another. In the history of art, arts patronage refers to the support that kings or popes have provided to musicians, painters, and sculptors...

, wide-scale defections in the delicate balance of regional interests left the regime of the Washington Luís vulnerable. Government policies designed to favor foreign interests exasperated the crisis as well, leaving the regime alienated from just about every segment of society. Following the Wall Street
Wall Street
Wall Street refers to the financial district of New York City, named after and centered on the eight-block-long street running from Broadway to South Street on the East River in Lower Manhattan. Over time, the term has become a metonym for the financial markets of the United States as a whole, or...

 panic, the government attempted to please foreign creditors by maintaining convertibility according to the money
Money
Money is any object or record that is generally accepted as payment for goods and services and repayment of debts in a given country or socio-economic context. The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of value; and, occasionally in the past,...

 principles preached by the foreign bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...

ers and economist
Economist
An economist is a professional in the social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economics and write about economic policy...

s who set the terms for Brazil's relations with the world economy, despite lacking any support from a single major sector in Brazilian society.

Despite capital flight
Capital flight
Capital flight, in economics, occurs when assets and/or money rapidly flow out of a country, due to an economic event and that disturbs investors and causes them to lower their valuation of the assets in that country, or otherwise to lose confidence in its economic...

, Washington Luís clung to a hard-money policy, guaranteeing the convertibility of the Brazilian currency into gold
Gold
Gold is a chemical element with the symbol Au and an atomic number of 79. Gold is a dense, soft, shiny, malleable and ductile metal. Pure gold has a bright yellow color and luster traditionally considered attractive, which it maintains without oxidizing in air or water. Chemically, gold is a...

 or British sterling
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...

. Once the gold and sterling
Sterling silver
Sterling silver is an alloy of silver containing 92.5% by mass of silver and 7.5% by mass of other metals, usually copper. The sterling silver standard has a minimum millesimal fineness of 925....

 reserves were exhausted amid the collapse of the valorization program, the government was finally forced to suspend convertibility of the currency. Foreign credit had now evaporated.

Revolution of 1930


Aside from the depression and the emergence of the Brazilian bourgeoisie, Brazil's historic dynamic of interregional politics was a significant factor encouraging the alliance that Getúlio Vargas
Getúlio Vargas
Getúlio Dornelles Vargas served as President of Brazil, first as dictator, from 1930 to 1945, and in a democratically elected term from 1951 until his suicide in 1954. Vargas led Brazil for 18 years, the most for any President, and second in Brazilian history to Emperor Pedro II...

 forged between the new urban sectors and the landowners hostile to the government in states other than São Paulo during the Revolution of 1930.

Along with the urban bourgeois groups, Northeastern sugar barons were left with a legacy of longstanding grievances against the paulista coffee oligarchs of the South. Northeastern landowners bitterly opposed Washington Luís' 1930 discontinuance of the drought projects of his predecessor. These tensions, however, can be traced back far earlier. The decay of established sugar oligarchies of the Northeast began dramatically with the severe drought of 1877. The rapid growth of coffee-producing São Paulo state was the flip side of the same coin. After the abolition of slavery
Slavery
Slavery is a system under which people are treated as property to be bought and sold, and are forced to work. Slaves can be held against their will from the time of their capture, purchase or birth, and deprived of the right to leave, to refuse to work, or to demand compensation...

 in the 1880s, Brazil saw a mass exodus of emancipated slaves and other peasants from the Northeast to the Southeast, thus ensuring a steady supply of cheap labor for the coffee planters.

Under the Old Republic, the politics of café com leite
Café com leite
Café com leite was a term that referred to the domination of Brazilian politics under the Old Republic by the landed gentries of São Paulo and Minas Gerais...

rested on the domination of the republic's politics by the Southeastern states of São Paulo
São Paulo (state)
São Paulo is a state in Brazil. It is the major industrial and economic powerhouse of the Brazilian economy. Named after Saint Paul, São Paulo has the largest population, industrial complex, and economic production in the country. It is the richest state in Brazil...

 and Minas Gerais
Minas Gerais
Minas Gerais is one of the 26 states of Brazil, of which it is the second most populous, the third richest, and the fourth largest in area. Minas Gerais is the Brazilian state with the largest number of Presidents of Brazil, the current one, Dilma Rousseff, being one of them. The capital is the...

, which were Brazil's largest states in terms of population and richest. The first presidents of the republic were from São Paulo and thereafter succeeded by an alternation between the outgoing governors of the two leading states in the presidency.

Given the grievances with ruling regime in the Northeast and Rio Grande do Sul, Liberal Alliance opposition leader Getúlio Vargas
Getúlio Vargas
Getúlio Dornelles Vargas served as President of Brazil, first as dictator, from 1930 to 1945, and in a democratically elected term from 1951 until his suicide in 1954. Vargas led Brazil for 18 years, the most for any President, and second in Brazilian history to Emperor Pedro II...

 chose as his vice-presidential candidate in 1930 João Pessoa
João Pessoa
João Pessoa , is the capital city of the state of Paraíba, was founded in 1585 and sometimes called the city where the sun rises first, is a Brazilian city and the easternmost city in the Americas at 34º47'38"W, 7º9'28"S. Local residents call its easternmost point Ponta do Seixas. It is also...

 of the Northeast state of Paraíba
Paraíba
Paraíba Paraíba Paraíba (Tupi: pa'ra a'íba: "bad to navigation"; Brazilian Portuguese pronunciation: is a state of Brazil. It is located in the Brazilian Northeast, and is bordered by Rio Grande do Norte to the north, Ceará to the west, Pernambuco to the south and the Atlantic Ocean to the east...

. With the understanding that the dominance of the landowners in the rural areas was to be absolute under any Liberal Alliance government, the Northeastern oligarchies were thus integrated into the Vargas alliance in a subordinate status via a new political party, the Social Democratic Party
Social Democratic Party (Brazil)
The Social Democratic Party was a liberal political party in Brazil between 1945 and 1965. Founded as a center-right party by Getúlio Vargas together with the left-leaning Brazilian Labour Party, it elected Presidents Eurico Gaspar Dutra in 1945 and Juscelino Kubitschek de Oliveira in 1955...

 (PSD).

However, behind the façade of Vargas' populism lies the intricate nature of his coalition—ever-changing from this point onward. Consequently, these locally dominant regional groups—effectively the gaúchos of Rio Grande do Sul
Rio Grande do Sul
Rio Grande do Sul is the southernmost state in Brazil, and the state with the fifth highest Human Development Index in the country. In this state is located the southernmost city in the country, Chuí, on the border with Uruguay. In the region of Bento Gonçalves and Caxias do Sul, the largest wine...

 and the sugar barons of the Northeast—themselves ushered the new urban groups into the forefront of Brazilian political life in a revolution from above, tilting the balance of the central government in favor of the Liberal Alliance.

Rise of Getúlio Vargas


A populist governor of Rio Grande do Sul
Rio Grande do Sul
Rio Grande do Sul is the southernmost state in Brazil, and the state with the fifth highest Human Development Index in the country. In this state is located the southernmost city in the country, Chuí, on the border with Uruguay. In the region of Bento Gonçalves and Caxias do Sul, the largest wine...

 – Brazil's southernmost state – Vargas was a cattle rancher with a doctorate in law from the most politically influential of Brazil's peripheral states and the 1930 presidential candidate of the Liberal Alliance.

Vargas was a member of the gaucho-landed oligarchy and had risen through the system of patronage and clientelism, but he had a fresh vision of how Brazilian politics could be shaped to support national development. He hailed from a region with a positivist and populist tradition, and was an economic nationalist who favored industrial development and liberal reforms.

Moreover, Vargas understood that with the breakdown of direct relations between workers and owners in the expanding factories of Brazil, workers could become the basis for a new form of political power—populism
Populism
Populism can be defined as an ideology, political philosophy, or type of discourse. Generally, a common theme compares "the people" against "the elite", and urges social and political system changes. It can also be defined as a rhetorical style employed by members of various political or social...

. Using such insights, he gradually established such mastery over the Brazilian political world that he stayed in power for 15 years. As the stranglehold of the agricultural elites eased, new urban industrial leaders acquired more influence nationally, and the middle class
Middle class
The middle class is any class of people in the middle of a societal hierarchy. In Weberian socio-economic terms, the middle class is the broad group of people in contemporary society who fall socio-economically between the working class and upper class....

 began to show some strength.

Vargas built up well-established political networks, and was attuned to the interests of the rising urban classes. In his early years, Vargas even relied on the support of the tenentes of the 1922 rebellion.

Era of populism


As a candidate in 1930, Vargas had utilized populist rhetoric to promote middle class concerns, thus opposing the primacy—but not the legitimacy—of the paulista coffee oligarchy and the landed elites, who had little interest in protecting and promoting industry.

The 1930 Revolution ushered in a coalition favoring protection of Brazilian manufacturers, backed by the bourgeoisie and landed interests. Between 1930–1934, Vargas followed a path of social reformism to attempt to reconcile these radically diverging interests. Reflecting the influence of the tenentes, he even advocated a program of social welfare and reform with striking parallel to New Deal
New Deal
The New Deal was a series of economic programs implemented in the United States between 1933 and 1936. They were passed by the U.S. Congress during the first term of President Franklin D. Roosevelt. The programs were Roosevelt's responses to the Great Depression, and focused on what historians call...

 in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

, prompting U.S. President Franklin Roosevelt to proudly refer to him as "one of two people who invented the New Deal."

Vargas sought to bring Brazil out of the Great Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...

 through statist-interventionist policies. He satisfied the demands of the rapidly growing urban bourgeois groups, voiced by the new (to Brazil) mass-ideologies of populism and nationalism. Like Roosevelt, his first steps focused on economic stimulus, a program on which all factions could agree.

Favoring a state interventionist policy utilizing tax breaks, lowered duties, and import quotas to expand the domestic industrial base, the populist gaúcho linked his pro-middle class policies to nationalism
Nationalism
Nationalism is a political ideology that involves a strong identification of a group of individuals with a political entity defined in national terms, i.e. a nation. In the 'modernist' image of the nation, it is nationalism that creates national identity. There are various definitions for what...

, advocating heavy tariffs to "perfect our manufacturers to the point where it will become unpatriotic to feed or clothe ourselves with imported goods!" In his early years, Vargas also relied on the support of the tenentes. His policies can best be described collectively as approximating those of fascist Italy under Mussolini, with an increased reliance on populism.

Vargas sought to mediate disputes between labor and capital. For instance, the provisional president quelled a paulista female worker's strike by co-opting much of its platform and requiring their "factory commissions" to use government mediation in the future.

Opposition arose among the powerful paulista coffee oligarchs to these unprecedented mass interventionist policies, as well as to the increased centralization of the government, its increasing populist and fascist stance, its protectionist/mercantilist policies (protecting politically favored producers at the expense of consumers) and the increasing dictatorial stance of Vargas himself . His tenuous collation also lacked a coherent program, being committed to a broad vision of "modernization", but little else more definitive. Having to balance such conflicting ideological constituencies, regionalism, and economic interests in such a vast, diverse, and socio-economically varied nation would, thus, not only explain the sole constancy that marked Vargas' long career—abrupt shifts in alliances and ideologies—but also his eventual dictatorship, modeled surprisingly along the lines of European fascism, considering the liberal roots of his regime. By 1934, however, many shifts were still awaiting Brazil.

Vargas's appeasement of the landed wing of his coalition soon revealed the reactionary nature of his government, especially after 1934. To placate friendly agrarian oligarchs, the modernizing state not only left the impoverished domains of the rural oligarchs untouched, the government even helped the sugar barons cement their control over rural Brazil.

Likely to the detriment of that region's long-term economic development, Vargas' static conservatism on matters of the countryside arguably exacerbated the disparities between the impoverished, semi-feudal Northeast and the dynamic, urbanized Southeast to this day. In return for the support of the sugar
Sugar
Sugar is a class of edible crystalline carbohydrates, mainly sucrose, lactose, and fructose, characterized by a sweet flavor.Sucrose in its refined form primarily comes from sugar cane and sugar beet...

 barons, the state crushed a wave of peasant revolts in the Northeast known as the cangaço
Cangaço
Cangaço is the name given to a form of "social banditry" in the Northeast of Brazil in late 19th and early 20th centuries. This region of Brazil is known for its aridness and hardships, and in a form of reaction against the domination of the land owners and the government, many men and women...

, marking the reversal of the drastic but gradual decline of the Northeastern latifundios from the 1870s to the 1930 revolution. Northeastern latifundios had been collapsing from within amid inexorable decline and peasant
Peasant
A peasant is an agricultural worker who generally tend to be poor and homeless-Etymology:The word is derived from 15th century French païsant meaning one from the pays, or countryside, ultimately from the Latin pagus, or outlying administrative district.- Position in society :Peasants typically...

 revolts. In the more prosperous past during the reign of Dom Pedro II
Pedro II of Brazil
Dom Pedro II , nicknamed "the Magnanimous", was the second and last ruler of the Empire of Brazil, reigning for over 58 years. Born in Rio de Janeiro, he was the seventh child of Emperor Dom Pedro I of Brazil and Empress Dona Maria Leopoldina and thus a member of the Brazilian branch of...

 (1831–1889), the peasantry under this system remained quite subordinate to the fazendeiros. Each planter retained his own private militia responsible for the maintenance of law and order within his domain, and these private militias were often responsible for kin feuds
Kinship
Kinship is a relationship between any entities that share a genealogical origin, through either biological, cultural, or historical descent. And descent groups, lineages, etc. are treated in their own subsections....

 that arose between various dynastic groups. Consequently, the Northeastern fazendeiros had grown accustomed to their iron grip on the rural countryside.

But the peasantry, to the surprise of many accustomed to overlooking Brazil's peripheral regions, was not that servile. Banditry was a common form of peasant protest. Other forms included messianism, anarchic uprisings, and tax evasion, each of which was common practice before 1930. With the Northeastern oligarchies now incorporated into the ruling coalition, the government focused on restructuring agriculture
Agriculture
Agriculture is the cultivation of animals, plants, fungi and other life forms for food, fiber, and other products used to sustain life. Agriculture was the key implement in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that nurtured the...

. The increasingly reactionary state intervened, suppressed the cangacieros, and restored order to the Northeast.

At the expense of the indigent peasantry—85 percent of the workforce—not only did Vargas renege on his promises of land reforms, he denied agricultural workers in general the working class' gains in labor regulations, a strategy reminiscent of contemporary leaders Benito Mussolini
Benito Mussolini
Benito Amilcare Andrea Mussolini was an Italian politician who led the National Fascist Party and is credited with being one of the key figures in the creation of Fascism....

, Francisco Franco
Francisco Franco
Francisco Franco y Bahamonde was a Spanish general, dictator and head of state of Spain from October 1936 , and de facto regent of the nominally restored Kingdom of Spain from 1947 until his death in November, 1975...

, and António de Oliveira Salazar
António de Oliveira Salazar
António de Oliveira Salazar, GColIH, GCTE, GCSE served as the Prime Minister of Portugal from 1932 to 1968. He also served as acting President of the Republic briefly in 1951. He founded and led the Estado Novo , the authoritarian, right-wing government that presided over and controlled Portugal...

.

Appeasement of landed interests, traditionally the country's dominant forces, thus required a realignment of his coalition, forcing him to turn against its left-wing. After mid-1932 the influence of the tenente group over Vargas rapidly waned, although individual tenentes of moderate tendency continued to hold important positions in the regime. With the ouster of the center-left tenentes from his coalition, his rightward shift would become increasingly pronounced by 1934.

Toward dictatorship


By 1934, Vargas developed in response what Thomas E. Skidmore and Peter H. Smith called "a legal hybrid" between the regimes of Mussolini's Italy and Salazar's Portuguese Estado Novo. Vargas copied repressive fascist tactics, and conveyed their same rejection of liberal capitalism, but attained power baring few indications of his future quasi-fascist policies.

Changing conditions forced Vargas to eventually abandon the arrangements of the "provisional government" (1930–34), that were characterized by a path of social reformism that appeared to favor the generally left wing of his revolutionary coalition, the tenentes.

Opposition from the right, however, marked Vargas' earliest moves away from the social reformism of his early years. A conservative insurgency in 1932 was the key turning point. After the July 1932 Constitutionalist Revolution
Constitutionalist Revolution
The Constitutionalist Revolution of 1932 is the name given to the uprising of the population of the Brazilian state of São Paulo against the 1930 coup d'état whereby Getúlio Vargas assumed the nation's Presidency; Vargas was supported by the military and the political elites of Minas Gerais, Rio...

—a veiled attempt by the paulista coffee oligarchs to retake the central government—Vargas tried to recover support of the landed elites, including the coffee growers, in order to establish a new alliance of power. The revolt reacted to Vargas' appointment of João Alberto
João Alberto
João Alberto, Brazilian politician in the early 20th century. He was appointed by Getúlio Vargas provisional governor in place of the elected governor of São Paulo. Elite paulistas loathed Alberto, resenting his centralization efforts and alarmed by the his economic reforms, such as a mere 5% wage...

, a center-left tenente as "interventor" (provisional governor) in place of the elected governor of São Paulo
São Paulo (state)
São Paulo is a state in Brazil. It is the major industrial and economic powerhouse of the Brazilian economy. Named after Saint Paul, São Paulo has the largest population, industrial complex, and economic production in the country. It is the richest state in Brazil...

. Elite paulistas loathed Alberto, resenting his centralization efforts and alarmed by the his economic reforms, such as a mere 5 percent wage increase and some minor distribution of some land to participants in the revolution. Amid threats of revolt, Vargas replaced João Alberto
João Alberto
João Alberto, Brazilian politician in the early 20th century. He was appointed by Getúlio Vargas provisional governor in place of the elected governor of São Paulo. Elite paulistas loathed Alberto, resenting his centralization efforts and alarmed by the his economic reforms, such as a mere 5% wage...

 with a civilian from São Paulo, appointed a conservative paulista banker as his minister of finance, and announced a date for the holding of a constituent assembly . The coffee oligarchs were only emboldened, launching the counterrevolutionary revolt in July 1932, which collapsed after 3 months of combat.

Regardless of the attempted counterrevolution, Vargas was determined to maintain his alliance with the original fazendeiro wing of his coalition and to strengthen his ties with the São Paulo establishment. The result was further concessions, again alienating the left wings of his coalition. The essential compromise was reneging on the promises of land reform
Land reform
[Image:Jakarta farmers protest23.jpg|300px|thumb|right|Farmers protesting for Land Reform in Indonesia]Land reform involves the changing of laws, regulations or customs regarding land ownership. Land reform may consist of a government-initiated or government-backed property redistribution,...

 made during the campaign of 1930. Vargas also pardoned half the bank debts of the coffee planters, who still had a significant grip on the state's electoral machinery, alleviating the crisis stemming from the collapse of the valorization program. To mollify his old paulista adversaries after their failed revolt, he even ordered the Bank of Brazil to take over the war bonds issued by the rebel government.

Yet Vargas was increasingly threatened by pro-Communist elements in labor critical of the rural latifundios by 1934, who sought an alliance with the countries peasant majority by backing land reform. Despite the populist rhetoric of the "father of the poor", the gaúcho Vargas was ushered into power by planter oligarchies of peripheral regions amid a revolution from above, and was thus in no position to truly meet substantive popular demands. By 1934, armed with a new constitution drafted with extensive influence from European fascist models, Vargas began reining in even moderate trade unions and turning against the tenentes. His further concessions to the latifundios pushed him toward an alliance with the Integralists
Brazilian Integralism
Brazilian Integralism was a fascist political movement in Brazil, created on October 1932. Founded and led by Plínio Salgado, a literary figure who was somewhat famous for his participation in the 1922 Modern Art Week, the movement had adopted some characteristics of European mass movements of...

, Brazil's mobilized fascist movement. Following the end of the provisional presidency, the reactionary nature Vargas' regime between 1934 and 1945—characterized by the co-optation of Brazilian unions through state-run, sham syndicates, suppression of opposition (particularly) leftist opposition thus was strongly becoming evident.

As a result of this appeasement of the rural fazendeiros, Vargas was increasingly threatened by pro-Communist elements in labor critical of the latifundios by 1934 who were actually serious in their demands for land reform
Land reform
[Image:Jakarta farmers protest23.jpg|300px|thumb|right|Farmers protesting for Land Reform in Indonesia]Land reform involves the changing of laws, regulations or customs regarding land ownership. Land reform may consist of a government-initiated or government-backed property redistribution,...

. Though eventually crushed by fascist-style force, it was quite astute for labor at the time to attempt to forge an alliance between Brazil's relatively small urban proletariat with the peasantry, who accounted for the vast majority of the population.

Suppression of Communist movement


Aside from these recent political disputes, long-term trends suggest an atmosphere in São Paulo conducive to ideological extremism
Extremism
Extremism is any ideology or political act far outside the perceived political center of a society; or otherwise claimed to violate common moral standards...

. The rapidly changing and industrializing Southeast, and the seething class conflict underlying this change, had been brewing an atmosphere conducive to the growth of European-style mass-movements; Brazil's Communist Party was established in 1922 and the postwar period witnessed the rise of the country's first waves of general strikes waged by viable trade unions. The Great Depression intensified their strength.

The same Great Depression that had ushered Vargas into power in a wave of disillusionment with the laissez-faire
Laissez-faire
In economics, laissez-faire describes an environment in which transactions between private parties are free from state intervention, including restrictive regulations, taxes, tariffs and enforced monopolies....

 orthodoxies of the time also rejuvenated the left and calls for social reforms. The Brazilian left has always been powerful, but rarely in power except for President João Goulart
João Goulart
João Belchior Marques Goulart was a Brazilian politician and the 24th President of Brazil until a military coup d'état deposed him on April 1, 1964. He is considered to have been the last left-wing President of the country until Luiz Inácio Lula da Silva took office in 2003.-Name:João Goulart is...

 in the 1960s, Lula da Silva from 2002–10 and now Dilma Rousseff
Dilma Rousseff
Dilma Vana Rousseff is the 36th and current President of Brazil. She is the first woman to hold the office. Prior to that, in 2005, she was also the first woman to become Chief of Staff of Brazil, appointed by then President Luiz Inácio Lula da Silva....

. The left has benefited from the nation's socio-economic contradictions. Brazil is infamous for perhaps the world's most appalling disparity in social class correlated in terms of both race and region. With the challenges of the reactionary Paulista Revolt out of the way, and the looming mass-mobilization of a potential new enemy— the urban proletariat, Vargas grew more concerned with imposing a paternalistic tutelage over the working class, functioning to both control them and co-opt them. Vargas' elite backers in both urban and rural Brazil would begin to view labor, larger and better organized than directly after the First World War
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...

, as an ominous threat to established interests.

Vargas could unite with all sectors of the landed elites, however, to control the urban proletariat and the peasantry. With the cangaço thoroughly repressed in the Northeast, all segments of the elite— the new bourgeoisie and the landed oligarchs— shifted their well-founded fears toward the trade unionism and socialist sentiments of the burgeoning urban proletariat. The urban proletariat, often composed of immigrants, was from the more European (in terms of population, culture, ideology, and level of industrial development) and more urbanized Southeast. In 1934, following the disintegration of Vargas' delicate alliance with labor, Brazil entered "one of the most agitated periods in its political history". According to Skidmore and Smith, Brazil's major cities began to resemble the Nazi-Communist battles in Berlin of 1932–33. By mid-1935 Brazilian politics had been drastically destabilized.

Vargas's attention focused on the rise of two nationally based and highly ideological European-style movements, both committed to European-style mass-mobilization: one pro-Communist and the other pro-fascist—one linked to Moscow
Moscow
Moscow is the capital, the most populous city, and the most populous federal subject of Russia. The city is a major political, economic, cultural, scientific, religious, financial, educational, and transportation centre of Russia and the continent...

 and the other to Rome
Rome
Rome is the capital of Italy and the country's largest and most populated city and comune, with over 2.7 million residents in . The city is located in the central-western portion of the Italian Peninsula, on the Tiber River within the Lazio region of Italy.Rome's history spans two and a half...

 and Berlin
Berlin
Berlin is the capital city of Germany and is one of the 16 states of Germany. With a population of 3.45 million people, Berlin is Germany's largest city. It is the second most populous city proper and the seventh most populous urban area in the European Union...

. The mass-movement intimidating Vargas was the Aliança Nacional Libertadora (ANL), a leftwing popular front launched in 1935 of socialists, communists, and other progressives led by the Communist Party and Luís Carlos Prestes
Luís Carlos Prestes
Luís Carlos Prestes was a leader of the 1920s tenente rebellion and the Communist opposition to the dictatorship of Getúlio Vargas in Brazil....

, known as "cavalier of hope" of the tenente rebellion (though not a Marxist at the time). A revolutionary forerunner of Che Guevara
Che Guevara
Ernesto "Che" Guevara , commonly known as el Che or simply Che, was an Argentine Marxist revolutionary, physician, author, intellectual, guerrilla leader, diplomat and military theorist...

, Prestes led the legendary but futile "Long March" through the rural Brazilian interior following his participation in the failed 1922 tenente rebellion against the coffee oligarchs. This experience, however, left Prestes, who only died in the 1990s, and some of his comrades skeptical of armed conflict for the rest of his life. Prestes' well-cultivated skepticism later helped precipitate the 1960s schism between hard-line militant Maoists and orthodox Marxist-Leninists in the Brazilian Communist Party, which endures to this day.

With center-left tenentes out of the coalition and the left crushed, Vargas turned to the only mobilized base of support on the right, elated by the atrocious, fascist-style crackdown against the ANL. As his coalition moved to the right after 1934, Vargas' ideological character and association with a global ideological orbit remained ambiguous. Integralism
Integralism
Integralism, or Integral nationalism, is an ideology according to which a nation is an organic unity. Integralism defends social differentiation and hierarchy with co-operation between social classes, transcending conflict between social and economic groups...

, claiming a rapidly growing membership throughout Brazil by 1935, began filling this ideological void, especially among the approximately one million Brazilians of German descent.

Plínio Salgado
Plínio Salgado
Plínio Salgado was a Brazilian politician, writer, journalist, and theologian. He founded and led the Brazilian Integralist Action, a far-right political party inspired on the Italian Fascist movement....

, a writer and politician, founded Integralism
Integralism
Integralism, or Integral nationalism, is an ideology according to which a nation is an organic unity. Integralism defends social differentiation and hierarchy with co-operation between social classes, transcending conflict between social and economic groups...

 in October 1933. He adapted Fascist and Nazi symbolism
Nazi symbolism
The twentieth century German Nazi Party was notable for its extensive use of graphic symbolism, most notably the Hakenkreuz , which it used as its principal symbol, and, in the form of the swastika flag, became the state flag of Nazi Germany....

 and the Roman salute
Roman salute
The Roman salute is a gesture in which the arm is held out forward straight, with palm down, and fingers touching. In some versions, the arm is raised upward at an angle; in others, it is held out parallel to the ground. The former is a well known symbol of fascism that is commonly perceived to be...

. It had all the visible elements of European fascism: a green-shirt-uniform
Uniform
A uniform is a set of standard clothing worn by members of an organization while participating in that organization's activity. Modern uniforms are worn by armed forces and paramilitary organizations such as police, emergency services, security guards, in some workplaces and schools and by inmates...

ed paramilitary
Paramilitary
A paramilitary is a force whose function and organization are similar to those of a professional military, but which is not considered part of a state's formal armed forces....

 organization, street demonstrations, and aggressive rhetoric directly financed in part by the Italian embassy. The Integralists borrowed their propaganda campaigns directly from Nazi materials, including the usual traditionalist excoriations of Marxism
Marxism
Marxism is an economic and sociopolitical worldview and method of socioeconomic inquiry that centers upon a materialist interpretation of history, a dialectical view of social change, and an analysis and critique of the development of capitalism. Marxism was pioneered in the early to mid 19th...

 and liberalism
Liberalism
Liberalism is the belief in the importance of liberty and equal rights. Liberals espouse a wide array of views depending on their understanding of these principles, but generally, liberals support ideas such as constitutionalism, liberal democracy, free and fair elections, human rights,...

, , and espousals of fanatical nationalism (out of context in the heterogeneous and tolerant nation) and "Christian virtues". Like the European fascists, they were essentially petit bourgeois. In particular, they drew support from military officers, especially in the navy.

Economic development


The strong parallels between the political economy of Vargas and the European police states thus began to appear by 1934, when a new constitution was enacted with direct fascist influence. After 1934, fascist-style programs would serve two important aims: stimulating industrial growth (under the guise of nationalism) and suppressing the working class. Passed on July 16, the Vargas government claimed that the corporatist provisions of the constitution of 1934 would unite all classes in mutual interests—its stated purpose in Fascist Italy. Actually, this propaganda point had somewhat of a basis in reality. In practice, this meant decimating organized labor and co-opting the working class. Of course, the advance of industry and urbanization, enlarged and strengthened the ranks of urban laborers, presenting the need to draw them into some sort of alliance committed to the modernization of Brazil. Vargas, and later Juan Perón
Juan Perón
Juan Domingo Perón was an Argentine military officer, and politician. Perón was three times elected as President of Argentina though he only managed to serve one full term, after serving in several government positions, including the Secretary of Labor and the Vice Presidency...

 in neighboring Argentina
Argentina
Argentina , officially the Argentine Republic , is the second largest country in South America by land area, after Brazil. It is constituted as a federation of 23 provinces and an autonomous city, Buenos Aires...

 emulated Mussolini's strategy of consolidating power by means of mediating class disputes and co-opting workers' demands under the banner of nationalism.

The constitution
Constitution
A constitution is a set of fundamental principles or established precedents according to which a state or other organization is governed. These rules together make up, i.e. constitute, what the entity is...

 established a new Chamber of Deputies that placed government authority over the private economy, which established a system of state-guided capitalism
Capitalism
Capitalism is an economic system that became dominant in the Western world following the demise of feudalism. There is no consensus on the precise definition nor on how the term should be used as a historical category...

 aimed at industrialization and reducing foreign dependency. These provisions essentially designated corporate representatives according to class and profession, organizing industries into state syndicates, but generally maintained private ownership of Brazilian-owned businesses.

The 1934–37 constitution, and especially the Estado Novo afterwards, heightened efforts to centralize authority in Rio de Janeiro
Rio de Janeiro
Rio de Janeiro , commonly referred to simply as Rio, is the capital city of the State of Rio de Janeiro, the second largest city of Brazil, and the third largest metropolitan area and agglomeration in South America, boasting approximately 6.3 million people within the city proper, making it the 6th...

 and drastically limit provincial autonomy in the traditionally devolved, sprawling nation. This was its more progressive role, seeking to consolidate the 1930 revolution, displacing the institutional power of the paulista coffee oligarchs with a centralist policy that respected local agro-exporting interests, but created the necessary urban economic base for the new urban sectors. The modernizing legacy is firmly evident: state government was to be rationalized and regularized, freed from the grips of coronelismo
Coronelismo
Coronelismo was the system of machine politics in Brazil under the Old Republic . Known also as the "rule of the coronels", the term referred to the classic boss system under which the control of patronage was centralized in the hands of a locally dominant oligarch known as a coronel, particularly...

.

The constitution of 1934 thus established a more direct mechanism for the federal executive to control the economy
Economy
An economy consists of the economic system of a country or other area; the labor, capital and land resources; and the manufacturing, trade, distribution, and consumption of goods and services of that area...

, pursuing a policy of planning and direct investment for the creation of important industrial complexes. State and mixed public-private companies dominated heavy and infrastructure industries, and private Brazilian capital predominated in manufacturing. There was also a significant growth of direct foreign investment in the 1930s as foreign corporations sought to enlarge their share of the internal market and overcome tariff barriers and exchange problems by establishing branch plants in Brazil. The state thus emphasized the basic sectors of the economy, facing the difficult task of forging a viable capital base for future growth in the first place, including mining
Mining
Mining is the extraction of valuable minerals or other geological materials from the earth, from an ore body, vein or seam. The term also includes the removal of soil. Materials recovered by mining include base metals, precious metals, iron, uranium, coal, diamonds, limestone, oil shale, rock...

, oil
Petroleum
Petroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, that are found in geologic formations beneath the Earth's surface. Petroleum is recovered mostly through oil drilling...

, steel
Steel
Steel is an alloy that consists mostly of iron and has a carbon content between 0.2% and 2.1% by weight, depending on the grade. Carbon is the most common alloying material for iron, but various other alloying elements are used, such as manganese, chromium, vanadium, and tungsten...

, electric power
Electric power
Electric power is the rate at which electric energy is transferred by an electric circuit. The SI unit of power is the watt.-Circuits:Electric power, like mechanical power, is represented by the letter P in electrical equations...

, and chemicals
Chemical industry
The chemical industry comprises the companies that produce industrial chemicals. Central to the modern world economy, it converts raw materials into more than 70,000 different products.-Products:...

.

Estado Novo


In 1937, while awaiting the presidential elections for January 1938, the existence of a communist plot (Intentona Comunista, the "Communist Attempt") to overthrow the government was denounced by Vargas. This denunciation was part of a plan, the Plano Cohen, to take over the government. Plano Cohen was forged in the government with the objective to create a climate favorable to the coup of the Estado Novo, which occurred November 10, 1937.

After that, Getúlio Vargas
Getúlio Vargas
Getúlio Dornelles Vargas served as President of Brazil, first as dictator, from 1930 to 1945, and in a democratically elected term from 1951 until his suicide in 1954. Vargas led Brazil for 18 years, the most for any President, and second in Brazilian history to Emperor Pedro II...

 closed the Congress and established a new Constitution
Constitution
A constitution is a set of fundamental principles or established precedents according to which a state or other organization is governed. These rules together make up, i.e. constitute, what the entity is...

 that gave him control of the legislature and judiciary. In the following month, Vargas signed a Decree dispersing political parties, including the Ação Integralista Brasileira
Brazilian Integralism
Brazilian Integralism was a fascist political movement in Brazil, created on October 1932. Founded and led by Plínio Salgado, a literary figure who was somewhat famous for his participation in the 1922 Modern Art Week, the movement had adopted some characteristics of European mass movements of...

(AIB). On May 11, 1938, the integralists, unsatisfied with the closing of the AIB, invaded the Guanabara Palace, attempting to depose Vargas. This episode is known as "Integralist Attempt" and was far from successful.

Between 1937 and 1945, the duration of the Estado Novo, Getúlio Vargas
Getúlio Vargas
Getúlio Dornelles Vargas served as President of Brazil, first as dictator, from 1930 to 1945, and in a democratically elected term from 1951 until his suicide in 1954. Vargas led Brazil for 18 years, the most for any President, and second in Brazilian history to Emperor Pedro II...

 gave continuity to the formation of structure and professionalism in the State. He oriented the state to intervene in the economy, promoting economic nationalism. The movement towards a "New State" was significant, in that along with the dismissal of Congress and its political parties, he wanted to recognize the indigenous population. He gained great favor in their eyes, calling him the "Father of the Poor". Outside of gaining popularity with them, he provided them with tools to assist them in the improvement of their agrarian lifestyles. He felt that if the country were to progress that the Indians, the very symbol of Brazilianness, should reap the benefits, ridden the label of oppression the country. This was important to establish a unified society. The intention was to form a strong impulse toward industrialization.

In this period, a number of industrial concerns were created:
  • The "Conselho Nacional do Petróleo" (CNP) (National Oil Advisor)
  • The "Departamento Administrativo do Serviço Público" (DASP) (The Administration Department of Public Service)
  • The "Companhia Siderúrgica Nacional
    Companhia Siderúrgica Nacional
    Companhia Siderúrgica Nacional is the second major steel-maker company in Brazil. Its main plant is located in the city of Volta Redonda, in the state of Rio de Janeiro...

    " (CSN) (National Iron Smelting Company)
  • The "Companhia Vale do Rio Doce
    Companhia Vale do Rio Doce
    Vale S.A. Vale S.A. Vale S.A. (BM&F Bovespa: / , / , / , / , is an Brazilian diversified mining multinational corporation and one of the largest logistics operators in Brazil. In addition to being the second-largest mining company in the world, Vale is also the largest producer of iron ore,...

    " (Rio Doce Valley Company)
  • The "Companhia Hidrelétrica do São Francisco" (São Francisco Hydroelectric Company)
  • The "Fábrica Nacional de Motores
    Fábrica Nacional de Motores
    Fábrica Nacional de Motores was a Brazilian manufacturer of engines and motor vehicles based in the Xerém district of Duque de Caxias near Rio de Janeiro that operated between 1942 and 1988.-Origins:...

    " (FNM) (National Motor Plant)


The Estado Novo had a powerful effect on Brazilian architecture, because it provided sufficient authority to implement Urban Planning
Urban planning
Urban planning incorporates areas such as economics, design, ecology, sociology, geography, law, political science, and statistics to guide and ensure the orderly development of settlements and communities....

 on a large scale in Brazil. Although sufficient wealth was not available to complete the plans, they had a powerful, lasting effect on the cities and their organization. One of the best-planned cities in the world, Curitiba, received its first planning during the Estado Novo. One notable urban planner was Alfred Agache
Alfred Agache (architect)
Alfred Hu­­bert Donat Agache , sometimes called Alfredo Agache, formally planned the Brazilian cities of Rio de Janeiro, Recife, Porto Alegre and Curitiba in the 1940s and 1950s, supported by the Estado Novo fascist regime in Brazil...

.

A series of measures were used to restrain opposition, such as the nomination of Intervenors for the States and censorship of the media, performed by the DIP ("Departamento de Imprensa e Propaganda", Department of Press and Propaganda). This agency also promoted the ideology of the Estado Novo, designed the official propaganda of the government and tried to direct public opinion.

In 1943, Getúlio edited the CLT ("Consolidação das Leis do Trabalho", Consolidation of the Labor Laws), guaranteeing that a job would be stable after ten years of service. It also provided weekly rest, regulated the work of minors and women, regulated night-time work and set a working day to eight hours.

World War II



With the start of World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...

, in 1939, Vargas maintained neutrality until 1941, when an agreement, proposed by Brazilian foreign relations minister Oswaldo Aranha
Oswaldo Aranha
Osvaldo Euclides de Sousa Aranha was a Brazilian politician, diplomat and statesman, who came to national prominence in 1930 under Getúlio Vargas....

 was formed between American continental nations to align with any American country in the event of an attack by an external power. Due to the consequences of this agreement, from Pearl Harbor
Pearl Harbor
Pearl Harbor, known to Hawaiians as Puuloa, is a lagoon harbor on the island of Oahu, Hawaii, west of Honolulu. Much of the harbor and surrounding lands is a United States Navy deep-water naval base. It is also the headquarters of the U.S. Pacific Fleet...

 Brazil's entering the war became just a matter of time. North American policy also financed Brazilian iron and steel extraction and placed military bases along the Brazilian North-Northeast coast, headquartered in Natal. With the conquest of Southeast Asia by Japanese troops, Getúlio signed a treaty, the Washington Accords, in 1942, which provisioned the supply of natural rubber
Rubber
Natural rubber, also called India rubber or caoutchouc, is an elastomer that was originally derived from latex, a milky colloid produced by some plants. The plants would be ‘tapped’, that is, an incision made into the bark of the tree and the sticky, milk colored latex sap collected and refined...

 from the Amazon to the Allies, resulting in the second rubber boom
Rubber boom
The rubber boom was an important part of the economic and social history of Brazil and Amazonian regions of neighboring countries, being related with the extraction and commercialization of rubber...

 and the forced migration of many people from the drought-stricken northeast to the heart of Amazônia. These people were known as Soldados da Borracha ("rubber soldiers").

After the sinking of Brazilian merchant ships by German and Italian submarines throughout 1942, popular mobilization forced the Brazilian government to abandon its passiveness and declare war on Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...

 and Italy
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...

 in August, 1942. Popular mobilization to make the war declaration effective, with the despatching of Brazilian troops to Europe, continued, but a decision by the Brazilian Government to actually send troops to fight the enemy was only made in March 1943 when Vargas and the U.S President Franklin Delano Roosevelt  met in the Conference of Natal, where the first official agreement was made to create an expeditionary force
Brazilian Expeditionary Force
The Brazilian Expeditionary Force or BEF was a force about 25,700 men and women arranged by the Army and Air Force to fight alongside the Allied forces in the Mediterranean Theatre of World War II...

 (BEF). In July 1944 the first BEF group, was sent to fight in Italy
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...

, and despite being poorly equipped and trained, it accomplished its main missions.

Soon after the war, however, fearing the BEF's popularity and possible political use of the allied victory by some BEF members, the then Brazilian government decided to make demobilization effective, with the BEF still in Italy. Returning to Brazil, its members were also subjected to some restrictions. Civilian veterans were forbidden from wearing military decorations or uniforms in public, while military vets were transferred to regions far from great cities or to border garrisons.

The events related to Brazilian participation in the war and the ending of the conflict in 1945 strengthened pressures in favor of redemocratization. Although there were some concessions by the regime, such as the setting of a date for presidential elections, amnesty for political prisoners, the freedom to organize political parties, and a commitment to choose a new Constitutional convention, Vargas was not able to retain support for the continuation of his presidency and was deposed by the military in a surprise coup launched from his own War Ministry on October 29, 1945.