The northeast region of Brazil is prone to drought. In 1985 two decades of military rule ended with the formation of a civilian government, and by 1988 the details of the transition to democracy had been drafted in a voluminous new constitution. The result of the referendum, duly held in April 1993, overwhelmingly favoured the first option, endorsing the power of President Itamar Franco who had taken over when Fernando Collor was impeached in late 1992. At the end of 1994 Fernando Henrique Cardoso of the Social Democratic Party succeeded at presidential elections. It has one of the fastest growing economies.
Brazil is also a highly industrialized nation.
Until recently the Brazilian economy had suffered from rampant inflation. He is also tackling the unwieldy and inefficient tax system, curbing public spending, reforming and reducing the burden of social security payments and expanding privatisation. The result is a rebirth of the Brazilian economy although there remains a massive disparity between the great wealth of a few and the poverty of many.