Hitória do café e governo vargas (inlgles)

The coffee cycle
The coffee production was mostly in the South and West of RJ, after a little while, the coffee production started in SP as well. The growth of coffee production provoked the development of a system of railroads, creation of banks, and immigration of Italians, Germans and Japanese people that came to Brazil to work and consequently liberated us from slave labor. The coffee industry grew really fast, specially because at the beginning the work was mostly free (slave labor). Brazil’s economy was based on exporting primary goods, and importing industrialized goods. In 1906, the government (composed mostly of coffee growers) started to protect Brazil’s major export sector (coffee), and created the Taubaté convention. The Taubaté convention had 4 main goals: the government had to buy the excess of coffee produced; borrow money from external market; create a tax in gold corresponding to each bag exported; ban new plantings. From 1910 to 1914, there was a growth in the industrial capacity, and from 1914 to 1918, during the I Wolrd War, Brazil had a growth of industrial production, because during the war it was really hard to import. In 1920, the brazillian export agriculture economy was very powerful, it was known as the “booming coffee export sector”. At this time, different kinds of industry were starting, such as metallurgy, chemicals, tobacco, etc. Things were going really well on the exporting sector, but in 1930 the Great Depression came and reached the whole world, changing a lot of things.
Celso Furtado thesis
Celso Furtado was a keynesianist, and his thesis talks about how Brazil started growing really fast after the Great Depression with the help of the government. In 1930, the exports of coffee decreased a lot, consequently, the coffee price got lower (1/3 of the average price before de depression). The brazilian government was buying more and more coffee and destroying it, trying to revalue the coffee price. It was the Taubaté convention