1980s in Brazil

After the end of the military dictatorship, Brazil went into a troubled process of re-democratization.

Figueiredo administration and "abertura"

The last military president, João Figueiredo, said that he took over the presidency more out of a sense of duty than political ambitionFact|date=December 2007. He signed a general amnesty into law and turned Geisel's "distensão" into a gradual "abertura" (the "opening" of the political system), saying that his goal was "to make this country a democracy, and that he'd beat and incarcerate those who disagree". The hard-liners reacted to the opening with a series of terrorist bombings. An April 1981 bombing incident confirmed direct military involvement in terrorism, but Figueiredo proved too weak to punish the guilty. The incident and the regime's inaction strengthened the public's resolve to end military rule. Moreover, Figueiredo faced other significant problems, such as soaring inflation, declining productivity, and a mounting foreign debt.

tagnation, inflation, and crisis

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 "Lula" Inácio da Silva, were arrested for violation of 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 relatively prosperous Rio Grande do Sul, rural people seized 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 GDP 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.

Transitional period

In 1984, many public demonstrations were held in major Brazilian cities which made it clear that military rule could not continue. Brazilians started to demand change in the electoral system, aiming to directly elect the President (Diretas Já). As public pressure built up, the opposition Brazilian Democratic Movement Party ("Partido do Movimento Democrático Brasileiro", PMDB) proposed a law to implement this change (Emenda Dante de Oliveira). As Congress was controlled by the pro-government Democratic Social Party (PDS, formerly ARENA), the law failed to pass.

Tancredo Neves of Minas Gerais, Getúlio Dornelles Vargas' minister of justice in the 1950s, and former federal deputy, senator, and prime minister seized the momentum. Neves had a reputation of honesty.

His abilities allowed him to build up an alliance between the PMDB and defectors from the (PDS) who founded the Liberal Front Party (PFL). The Democratic Alliance (Aliança Democrática) presented itself as supporting with 1984 demands for political change and end of military rule.

It presented Neves as opposition candidate against Paulo Maluf in the Electoral College. As public opinion put pressure on it, demanding the end of the regime, Tancredo was elected by majority vote in January 15, 1985.

However, Neves collapsed the night before his inauguration and the presidency passed to Vice President José Sarney (president, 1985–90), long-time supporter of the military regime. Neves died on April 21. The hope that 1985 would provide a quick transition to a new regime faded as Brazilians watched the turn of events in a state of shock. Like the regime changes of 1822, 1889, 1930, 1946, and 1964, the 1985 change also proved to be long and difficult.

Sarney called a National Assembly session to write a new democratic constitution. Ulysses Guimarães, who led the civilian resistance to the military rule, presided over the session.

The government proclaimed a new constitution in October 1988 and restored civil and public rights such as freedom of speech, independent Public Prosecutors (Ministério Público), economic freedom, direct and free elections and universal health system. It also decentralized government, empowering local and state governments.

As the political transition developed, the economy suffered high inflation and stagnancy. Sarney tried to control inflation with many economic acts, or Plans: Plano Cruzado 1, Plano Cruzado 2, Plano Verão. All of them included government control over prices, price freezes and ultimately changing the national currency. During Sarneys's presidency, Brazil had three currency units: Cruzeiro, Cruzado and Cruzado Novo. Economic domestic troubles led to canceling payments of Brazilian International Debt in 1988. This closed international financial markets for Brazil and the economic situation worsened.

Despite the initial decrease, inflation returned higher than before economic plans, achieving 84% a month at 1990. The government's inability to deal with inflation ultimately led parties that conducted political transition to be defeated in 1989 election.

Collor and Franco administrations

The first direct presidential election after 29 years was held on October 15, 1989 (first round) and November 15, 1989 (second round). Fernando Collor de Mello ran against Luis Inacio Lula da Silva. Collor was elected with 53% of the vote for a five-year term.

Collor's agenda focused on fighting corruption in Sarney's administration and completing the transition from the 21-year military rule to civilian government. Economic changes aimed to control soaring inflation and modernization.

Although he had massive support amongst the voters, the administration had a small parliamentary base as Collor's recently founded party had few deputies and no senators and faced fierce opposition from main parties that splintered from Democratic Alliance: the Brazilian Democratic Movement Party (PMDB), Liberals (PFL), and Social Democrats (Brazilian Social Democracy Party, PSDB).

His first act was known as Plano Collor: all savings accounts and financial investment were frozen, and the national currency was changed from Cruzado Novo to Cruzeiro (NCz$1,000 = Cr$1). Plano Collor had an initial success, but after six months, it failed in its main goal as inflation accelerated again. This started to erode Collor's prestige.

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