page_title: History of Brazil since 1985
section_title: The 1980s "lost decade": stagnation, inflation, and crisis
hierarchical_section_title: History of Brazil since 1985 / The 1980s "lost decade": stagnation, inflation, and crisis
caption_attribution_description: Manifestações pelas eleições diretas para a presidência da República no Plenário da Câmara dos Deputados. Abril de 1984. Fotógrafo: Célio Azevedo.
context_page_description: Brazilian history since 1985, also known as the Sixth Brazilian Republic or New Republic, is the contemporary epoch in the history of Brazil, beginning when civilian government was restored after a 21-year-long military regime established after the 1964 coup d'état. The negotiated transition to democracy reached its climax with the indirect election of Tancredo Neves PMDB by Congress. Neves belonged to Brazilian Democratic Movement Party, an opposition party that had always opposed the military regime. He was the first civilian president to be elected since 1964.
  Neves was set to take over from General João Figueiredo, the last of the military junta presidents appointed by their predecessor. The transition was hailed as the dawn of a New Republic in contrast with República Velha, the first epoch of the Brazilian Republic, from 1889 until 1930. It became synonymous with the contemporary phase of the Brazilian Republic and the political institutions established in the wake of the country's re-democratization.
  President-elect Tancredo Neves fell ill on the eve of his inauguration and could not attend it.
context_section_description: Political liberalization and the declining world economy contributed to Brazil's economic and social problems.  In 1978 and 1980, huge strikes took place in the industrial ring around São Paulo. Protesters asserted that wage increases indexed to the inflation rate were far below an acceptable standard of living. Union leaders, including the future three-time presidential candidate and president Luís Inácio da Silva, were arrested for violating national security laws. The International Monetary Fund (IMF) imposed a painful austerity program on Brazil. Under that program, Brazil was required to hold down wages to fight inflation. In the north, northeast, and even in the relatively prosperous Rio Grande do Sul, impoverished rural people occupied unused private land, forcing the government to create a new land reform ministry. Tension with the Roman Catholic Church, the major voice for societal change, peaked in the early 1980s with the expulsion of foreign priests involved in political and land reform issues.
  To attack the soaring debt, Figueiredo's administration stressed exports — food, natural resources, automobiles, arms, clothing, shoes, even electricity — and expanded petroleum exploration by foreign companies. In foreign relations, the objective was to establish ties with any country that would contribute to Brazilian economic development. Washington was kept at a certain distance, and the North-South dialogue was emphasized.
  In 1983, the economy floundered as the gross domestic product declined by 5.0%, the impact of which was accelerated by rising inflation and the failure of political leadership. Figueiredo's heart condition led to bypass surgery in the United States, removing him from control of the situation. In an impressive display, millions of Brazilians took to the streets in all the major cities demanding a direct vote (Diretas Já!) in the choice of the next president. In April 1984, Congress failed to achieve the necessary numbers to give the people their wish, and the choice was left to an electoral college. Figueiredo did not act forcefully to back a preference, so it became a scramble as candidates pursued the collegial votes.
caption: Diretas Já movement
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