The Concept of Dependent Development - Essay Example

The Concept of Dependent Development Introduction Brazil or the Federative Republic of Brazil is a country in South America. It is one of the Latin American countries and the largest in South America. Brazil is the fifth largest country in the world with more than 193 million people1. It is also the largest Portuguese speaking country in the whole world. Brazil is one of the Latin American countries with a history of slavery and slave trade. Many Latin American countries were colonized by foreign powers and getting out of the state of dependency on these colonies was a long process. In its history, Brazil has gone through periods of social economic and political dependence on foreign powers. A few years after independence, the country was looking up to foreign investors to build infrastructure and help establish systems in the country2. However, Brazil was not to depend on foreign nations for all time. Within the same period of 1870 to 1930, the country was strengthening its institutions and coffee among other products was bringing heavy returns which helped grow the economy. Economic growth meant that there was no dependence on foreign countries for development in Brazil. This essay will discuss the concept of dependence development in Brazil’s political, economic and social spheres between 1870 and 1930. The sixty years between 1870 and 1930 passed with a lot of changes in Brazil and the rest of Latin America. The start of this era had liberal victory struggles of ideology after independence. This period came to its end in 1929 when the U.S stock market crashed and the global economic depression started3. During this time the elites of Brazil supported and felt a true sense of advancement. They struggled to bring about modernization in Brazil through new technology, industrialization, construction of nationalism and immigration4. Development in Brazil on the political, social and economic fronts can be described as both dependent and independent. Brazil has gone through the two whereby it relied heavily on foreign powers for its development while at other times it has tried to create independent development. After 1870, Brazil heavily relied on foreign developed nations for loans and support in its development. It displayed what has been described as dependent development. Liberal conservative struggles at this time that had prevailed in politics ended by bringing about liberal victories5. The liberals of the 19th century were convinced that separating the church form the state, extending public education, industrialization, free market and the inclusion of the population in a Europeanized culture was going to serve the best interest of Brazil and bring about modernization and national progress. In the thinking of the liberals, progress in terms of social, political and economic development meant that their country would start looking like the U.S and Europe. They created policies that would develop an urbanized, educated and industrialized middle class6. They increased productivity from the rural areas. They made a lot of effort to consolidate huge agricultural estates and livestock ranches in which the indigenous populations provided their labor. Less populated areas had Europeans immigrating to settle there. Towards the end of the 19th century and the beginning of the 20th century, Brazilian leaders had achieved much success in bringing progress. Their style of modernization was characterized by many kilometers of railroad track, foreign investment, telegraph lines and the construction of private and public buildings that resembled those of Paris and London. Through these development projects they heavily relied on foreign loans. By 1870, liberal government policies were poised at ensuring suitable conditions for the growth of the economy which was necessary for the introduction of foreign investments and new technologies. The unfortunate thing during this time was that the national treasury was not sufficient to for these developments7. The political leaders of Brazil enticed some foreign investors to help in the construction of roads, telegraph lines, reconstruct port facilities, and invest into mining activities. This was calculated to bring to Brazil the desire modernization and national progress. In many places there was a shortage of capital and labor. Therefore, the government together with investors had to recruit immigrants from Europe, Asia and West Indies8. Brazil could not have achieved its developmental success without have relied on foreign support. Dependence on foreign support between 1870 and 1930 was the norm for most of the Latin American countries and Brazil was no exception. Investments and technology at the end of the 19th century in Brazil was more focused on processing, extraction, and raw material transportation which were the major exports in the country into the 20th century. The government was compelled to give many concessions to investors from outside the country. These investors received concessions so that they could build roads, and develop infrastructure to advance development. The rush of the government of Brazil to bring modernization by bringing in technology from outside the country and seeking foreign investment was in line in the interests of European and North American capitalists. Towards the end of the 19th century, the industrialization of America and world. In return they were in need of steady raw material sources for more production. In order to create a balance Western Europe had produced sufficient capital to make investments in other parts of the, they had to invest in the extraction of the natural resources and development of infrastructure in Brazil. It was a common thing to see French, German, American and British banks opening branches in Brazilian cities to facilitate trade and financing activities in the country9. Towards the end of the 19th century into the 20th century, the U.S increased its investment in Brazil and other Latin American countries. This period has been called the “golden age” of U.S capitalism in Brazil and Latin America by the Historian Thomas O’ Brien. Entrepreneurs, company leaders and government officials in the United States agreed on general terms that Brazil was ready with opportunities and went on to take advantage of them10.     The concept of dependence in the development of Brazil is not true for all areas of its society and for all times. After independence and especially between 1870 and 1930, Brazil was developing from its own effort and resources. Coffee, gold and sugar had grown to become very important exports for the country. With the revenue obtained through this trade the country could support its developmental projects. The coffee surge started way after Brazil had come out of colonialism. More so, the introduction of wage labor in the place of slave labor after 1870 symbolized increased efficiency and the development of a domestic market to absorb the wage goods11. The complex nature of sectorial linkages in the economy of Brazil was brought about by trade and coffee production. The introduction of coffee in Brazil took place early in the 18th century. However, before this is was being cultivated for domestic purposes. Although Brazil in its initial stags of development relied on investors from outside to bring infrastructural development, the exploitation of its natural resource sand coffee production brought huge returns to the country which made it able to finance its own development. The cultivation of coffee in areas far from the ports could only be necessary with the existence of rail roads12. In 1860, the rail network was 223 kilometers and by the year 1885 this rail network had increased to 6, 930 km13. The major rail connection between the eastern highlands of Sao Paulo and Santos made it possible for the quick expansion of coffee production into in the central and northwest of the state. Brazil was growing and becoming more independent in its politics, social life and the economy. In order to enhance its social independence it curved its own way by inviting immigrants from other nations. These came to build a robust society independent of the colonialists and imperial powers that had ruled the country before. In 1870 there was an acute shortage of labor. This increased the need for immigrant labor. Immigrant labor made it possible for the coffee production to increase. Coffee production was increasing meaning that the period between 1870 and 1930 saw the economy grow from coffee production. For example, in the year 1880, coffee production from Sao Paulo was 1.2 million coffee bags weighing 60 kg each. This accounted for 25% of the total production from Brazil14. By the year 1888 the production of coffee had grown to 40% which was equivalent to 2.6 million bags. By 1902, production had increased to 8 million bags or 60% of the production15. Between 1884 and 1890, Sap Paulo had received 201, 000 immigrants, a number which increased to 733,000 between 1891 and 1900. In 1891the economy of Brazil was growing considerably and coffee was the biggest export accounting for 63% of the exports from Brazil. Apart from coffee the economy also flourished from other things such as rubber, cocoa, sugar, cotton and tobacco16. In the first 3 decades of the 20th century the economy of Brazil was going through times of growth although it also suffered from the effects of the First World War, the overproduction of coffee and the Great Depression17. As stated earlier the expansion of coffee production and other agricultural products meant that the economy of Brazil was becoming robust and that there was no more dependence on loans from foreign countries. Between 140 and 1930 there was an expansion in light industries such as textiles, clothing, beverages, and tobacco and food products. The expansion in light industries was a further indication of the stability and independence of Brazil in the economical and political spheres. The expansion was brought about by the growth in incomes, the increased foreign exchange, fiscal policies and events outside the country like World War 1. Expansion was also witnessed in transportation, the capacity of electric energy, broader urbanization and the establishment of a strong class of entrepreneurs18. Conclusion In conclusion, the paper has critiqued the concept of dependent development in Brazil. Just as other Latin American countries were colonies of foreign powers, Brazil was. After independence, Brazil had to find a way of bringing development within its borders. This required the cooperation of foreign investors whose capital was very much needed in the development of infrastructure and other areas of the economy. Brazil was to depend on loans for some time before it got on the track of development. The construction of rail tracks, roads and telegraph lines was done principally with the help of foreign capital. These developments resulted in the growth of the agriculture sector which became a big asset to the economy. However, the tag of dependent development on Brazil may not be valid considering that the expansion of the agricultural sector especially coffee production. The expansion of export trade was a major source of foreign exchange which became a big boost to the economy. With the export trade growing the country could finance its development. It no longer relied on foreign countries for political stability, social development and economical growth. Bibliography Edwards, Todd. Brazil: A Global Studies Handbook. ABC- CLIO, 2008.  Haber, Stephen. How Latin America Fell Behind: Essays on the economic Histories of Brazil and Mexico, 1800-1914. Stanford University Press, 1997.  Baer, Werner. The Brazilian Economy: Growth and Development. Greenwood Publishing Group, 2001. Bethell, Leslie. Brazil: Empire and Republic, 1822 – 1932. Cambridge University Press, 1985. Fukuyama, Francis. Falling Behind: Explaining the Development Gap Between Latin America and other parts of the World. Oxford University Press, 2008. Bethell, Leslie. c. 1870- 1930. Cambridge University Press, 1986. Pineda, Yovanna. Industrial Development in a Frontier Economy. Oxford University Press, 2009. Baer, Werner and Fleischer, David. The Economies of Brazil and Argentina. A comparative Perspective. Edward Elgar Publishing, 2011. Triner, Gail. Banking and Economic Development: Brazil, 1889-1930. Cambridge University Press, 2000. Schmitter, Philip. Interest, Conflict and Political Change in Brazil. Cengage Learning, 1971. Sanderson, Steven. The Politics of Trade in Latin American Development. John Wiley, 1992. Department of Urban Studies and Planning MIT Alice H. Amsden Professor of Political Economy. The Rise of “The Rest.” Challenges to the west from Late Industrializing. Oxford University Press, 2001.   Bethell, Leslie. Latin America: Politics and Society Since 1930.Oxford University Press, 1998. Lisa, Edwards. Paths to Progress in Modern Latin America. World History Connected, 2010. Read More