1990s in Brazil

Economic changes included lifting import barriers exposing local companies to international competition. Many companies went bankrupt or were sold, unemployment grew and support for the government deteriorated.

Parliamentary elections were held on October 15, 1990 and the government failed to win a reliable base in Congress and the president started to lose support.

In May 1991, Fernando Collor was accused by his brother, Pedro Collor, of corruption, by condoning an influence peddling scheme run by his campaign treasurer, Paulo César Farias. The Federal Police and Congress began an investigation soon after. Some months later, with the investigation progressing and under fire, Collor went on national television to ask for the people's support, by going out on the street and protesting against "coup" forces. On August 11, 1992, students organized by the National Student Union (União Nacional dos Estudantes - UNE), thousands of students protested on the streets against Collor. Their faces, often painted in a mixture of the colors of the flag and protest-black, lead to them being called "Caras-pintada". [Rezende, Tatiana Matos [http://www.une.org.br/home3/movimento_estudantil/movimento_estudantil_2007/m_9920.html UNE 70 Anos: "Fora Collor: o grito da juventude cara-pintada"] União Nacional dos Estudantes. Retrieved August 17, 2007.]

On August 26, 1992, the final congressional inquiry report was released, where it was proven that Fernando Collor had personal expenses paid for by money raised by Paulo César Farias through his influence peddling scheme. Impeachment proceedings were installed in the lower house of congress on September 29 , 1992. Collor was impeached, and subsequently removed from office by a vote of 441 for and 38 votes against. [Lattman-Weltman, Fernando. [http://www.cpdoc.fgv.br/nav_fatos_imagens/htm/fatos/Impeachment.asp September 29, 1992: Collor's Impeachment] pt icon Fundação Getúlio Vargas. Retrieved August 17, 2007.] Fernando Collor resigned his term in office just before the Brazilian Senate was to vote for his impeachment. The senate did so anyway, suspendeding his political rights for eight years.

His vice-president, Itamar Franco, assumed the presidency for the remainder of Collor's term.

Franco moved away from Collor and made arrangements for a National Coalition Government including main leaders from PMDB, PFL, and PSDB. Franco appointed Fernando Henrique Cardoso as Minister of Treasury and gave him the responsibility to control inflation - the average annual inflation rate from 1990 to 1995 was 764%.

Cardoso put together a successful stabilization program, Plano Real, that brought inflation to 6% year. Franco's approval ratings rose and he supported Cardoso to succeed him.

In the October 3, 1994 presidential elections, Fernando Henrique Cardoso, was elected with 54% of the votes.

Cardoso administration

Fernando Henrique Cardoso started his first term in January 1 1995 and was reelected in 1998. President Cardoso sought to establish the basis for long-term stability and growth and to reduce Brazil's extreme socioeconomic imbalances. His proposals to Congress included constitutional amendments to open the Brazilian economy to greater foreign investment and to implement sweeping reforms - including social security, government administration, and taxation - to reduce excessive public sector spending and improve government efficiency.

His government is credited with providing economic stability to a country marred by years of hyperinflation. At the same time the Mexican, East Asian, Russian and Argentine economic crises diminished the prospects for economic growth during his presidency.

It was also during his administration that many state-owned companies were privatized, and agencies created for the first time to regulate many sectors of industry (energy, oil, aviation, etc.)

Cardoso's administration also placed a strong focus on external affairs. In addition to acceding to the WTO and participating in the Uruguay Round, Brazil participated in the INTERFET peacekeeping mission to East Timor.