Background: Following three centuries under the rule of Portugal Brazil became an independent nation in 1822. By far the largest and most populous country in South America Brazil has overcome more than half a century of military intervention in the governance of the country to pursue industrial and agricultural growth and development of the interior. Exploiting vast natural resources and a large labor pool Brazil became Latin America's leading economic power by the 1970s. Highly unequal income distribution remains a pressing problem.
Ethnic groups: white (includes Portuguese German Italian Spanish Polish) 55% mixed white and black 38% black 6% other (includes Japanese Arab Amerindian) 1%
Languages: Portuguese (official) Spanish English French
Environment Current issues: deforestation in Amazon Basin destroys the habitat and endangers the existence of a multitude of plant and animal species indigenous to the area; air and water pollution in Rio de Janeiro Sao Paulo and several other large cities; land degradation and water pollution caused by improper mining activities
Administrative divisions: 26 states (estados singular - estado) and 1 federal district* (distrito federal); Acre Alagoas Amapa Amazonas Bahia Ceara Distrito Federal* Espirito Santo Goias Maranhao Mato Grosso Mato Grosso do Sul Minas Gerais Para Paraiba Parana Pernambuco Piaui Rio de Janeiro Rio Grande do Norte Rio Grande do Sul Rondonia Roraima Santa Catarina Sao Paulo Sergipe Tocantins
Legislative branch: bicameral National Congress or Congresso Nacional consists of the Federal Senate or Senado Federal (81 seats; three members from each state or federal district elected according to the principle of majority to serve eight-year terms; one-third elected after a four year period two-thirds elected after the next four-year period) and the Chamber of Deputies or Camara dos Deputados (513 seats; members are elected by proportional representation to serve four-year terms)
Judicial branch: Supreme Federal Tribunal 11 judges are appointed for life by the president and confirmed by the Senate
Political parties and leaders: Brazilian Democratic Movement Party or PMDB [Jader BARBALHO president]; Brazilian Labor Party or PTB [Jose Carlos MARTINEZ president]; Brazilian Social Democracy Party or PSDB [Teotinho VILELA Filho president]; Brazilian Socialist Party or PSB [Miguel ARRAES president]; Brazilian Progressive Party or PPB [Paulo MALUF president]; Communist Party of Brazil or PCdoB [Joao AMAZONAS chairman]; Democratic Labor Party or PDT [Leonel BRIZOLA president]; Liberal Front Party or PFL [Jorge BORNHAUSEN president]; Liberal Party or PL [Valdemar COSTA Neto president]; Popular Socialist Party or PPS [Roberto FREIRE president]; Worker's Party or PT [Jose DIRCEU president]
International organization participation: AfDB BIS CCC ECLAC FAO G-11 G-15 G-19 G-24 G-77 IADB IAEA IBRD ICAO ICC ICFTU ICRM IDA IFAD IFC IFRCS IHO ILO IMF IMO Inmarsat Intelsat Interpol IOC IOM (observer) ISO ITU LAES LAIA Mercosur NAM (observer) NSG OAS OPANAL OPCW PCA RG UN UNCTAD UNESCO UNHCR UNIDO UNMOP UNTAET UNU UPU WCL WFTU WHO WIPO WMO WToO WTrO
Flag description: green with a large yellow diamond in the center bearing a blue celestial globe with 27 white five-pointed stars (one for each state and the Federal District) arranged in the same pattern as the night sky over Brazil; the globe has a white equatorial band with the motto ORDEM E PROGRESSO (Order and Progress)
Economy overview: Possessing large and well-developed agricultural mining manufacturing and service sectors Brazil's economy outweighs that of all other South American countries and is expanding its presence in world markets. In the late eighties and early nineties high inflation hindered economic activity and investment. The Real Plan instituted in the spring of 1994 sought to break inflationary expectations by pegging the real to the US dollar. Inflation was brought down to single digit annual figures but not fast enough to avoid substantial real exchange rate appreciation during the transition phase of the Real Plan. This appreciation meant that Brazilian goods were now more expensive relative to goods from other countries which contributed to large current account deficits. However no shortage of foreign currency ensued because of the financial community's renewed interest in Brazilian markets as inflation rates stabilized and the debt crisis of the eighties faded from memory. The maintenance of large current account deficits via capital account surpluses became problematic as investors became more risk averse to emerging market exposure as a consequence of the Asian financial crisis in 1997 and the Russian bond default in August 1998. After crafting a fiscal adjustment program and pledging progress on structural reform Brazil received a $41.5 billion IMF-led international support program in November 1998. In January 1999 the Brazilian Central Bank announced that the real would no longer be pegged to the US dollar. This devaluation helped moderate the downturn in economic growth in 1999 that investors had expressed concerns about over the summer of 1998. Brazil's debt to GDP ratio of 48% for 1999 beat the IMF target and helped reassure investors that Brazil will maintain tight fiscal and monetary policy even with a floating currency. The economy is expected to push growth up to 3% in 2000.
Exports: $46.9 billion (f.o.b. 1999) Commodities: manufactures iron ore soybeans footwear coffee Partners: US 18% Argentina 13% Germany 5% Netherlands 5% Japan 4% (1999)
Imports: $48.7 billion (f.o.b. 1999) Commodities: machinery and equipment chemical products oil electricity Partners: US 23% Argentina 12% Germany 10% Japan 5% Italy 5% (1999)
Disputes international: two short sections of boundary with Uruguay are in dispute - Arroio Invernada (Arroyo de la Invernada) area of the Rio Quarai (Rio Cuareim) and the islands at the confluence of the Rio Quarai and the Uruguay River
Illicit drugs: limited illicit producer of cannabis minor coca cultivation in the Amazon region mostly used for domestic consumption; government has a large-scale eradication program to control cannabis; important transshipment country for Bolivian Colombian and Peruvian cocaine headed for the US and Europe; increasingly used by traffickers as a way station for narcotics air transshipments between Peru and Colombia; upsurge in drug-related violence and weapons smuggling