Showing papers on "Real gross domestic product published in 1974"
TL;DR: In the early 1960s, Brazil had concluded a decade of rapid economic expansion with industrialization occurring first through consumer goods import substitution and later through entry into capital goods production as mentioned in this paper.
Abstract: Since 1968, Brazil has had one of the most rapid economic growth rates in the world, averaging a 10 percent per annum growth of real GDP. The Brazilian strategy for economic development has been keyed substantially to the creation of modern financial markets, institutions, and instruments. The transferability and long-run potential of this strategy should be of interest to businessmen and to officials of developing countries and aid agencies. This article summarizes the financial market innovations made since 1964 in Brazil, broadly evaluates their measurable effectiveness, and concludes with some considerations of problems inherent in this form of development strategy. By the early 1960s Brazil had concluded a decade of rapid economic expansion with industrialization occurring first through consumer goods import substitution and later through entry into capital goods production. State intervention in production had been especially important in sectors such as iron and steel, petroleum, transportation, and public utilities.1 The underdeveloped natural and human resources of Brazil had led to substantial infrastructure investments by government in the period. To a large extent, new investment had been financed by inflationary means. By the early 1960s, the import substitution process had largely run its course. Inflation had produced substantial distortions in the Brazilian economy. Corruption was extensive and complemented by political intervention in both the industrial and financial sectors. Real GDP per capita began to decline in 1963. The increase in cost-of-living index peaked at an annual inflation rate of 136 percent in the first quarter of 1964. The military government which came to power through a coup d'etat in April 1964 has placed the achievement of "developed" status for Brazil as a prerequisite for the return of government to civilian control. Political opposition has been harshly suppressed. A key element in the ability of the government to carry out its development strategy through financial
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