- I. Domestic Policy: Politics
Political Policy and Establishment of Government
- · Wanted to dismantle the monopolistic power shared by Minas Gerais and Sao Paulo and to stop the ongoing conflicts between states
- · Limited state autonomy by replacing elected state governors with interventors in all states but Minas Gerais.
1934 constitution
- · Preserved the federal system and bicameral legislature but gave the president more powers
- · Established land-ownership restrictions and a labor tribunal system
- · Limited states’ autonomy, for ex restricting states’ ability to make their own tax system and preventing states from taxing trade with other states.
Estado Novo: Vargas established the Estado Novo in the 1937 constitution. Power was even more centralized, with states’ rights further restricted. Opposition groups’ political freedom was restricted.
- II. Domestic Policy: Economics
Nationalism in Economy
- · Nationalist elements in economy: National Steel Metallurgy Company, National Oil Committee to decrease dependence on foreign fuel
- · Capitalism guided by the State
ISI and Valorization
- · Encouraged domestic industry thru subsidies on domestic and tariffs on foreign goods to achieve a trade balance b/w exports and imports
- · Intervention in economy for improvement: burning of excess coffee, restricted plantings, stocks withheld, diversification of economy
- III. Rise and Fall
- · Lost to Julio Prestes in 1930 election, led coup with Liberal Alliance (tenentes, Minas Gerais, Rio Grande do Sul, Pairaba)
- · Left in 1945 when threatened by military
- · Elected again in 1950 by popular vote because of Dutra’s inefficiencies, BUT had a difficult presidency thru complaints and injured economy, Lacerda Affair issues
- · Military requested resignation, committed suicide in 1954
- IV. Foreign Policy
- · Estado Novo inspired by FDR’s New Deal and European Fascism
- · Germany was main market for trade in WWII BUT didn’t join axis powers, loans and aid to Allies
- · Post WWII: Vargas turned away from foreign dependence although Dutra had protected foreign interests
- V. Cult of Personality
- · The Father of the Poor (also the Mother of the Rich)
- · Xenophobic Nationalism
- · Suicide note used as political tool to destroy ambitions of enemies
- · Overall, committed to personal agenda rather than ideology