In the 1980s, Brazil went through a severe economic crisis.It went to borrow from the International Monetary Fund believing that it is the solution to its economic crisis.
Of course, it implemented the unfair conditions package which led to layoffs of millions of workers, cut the wages of other workers, cancel subsidies and the collapse of the Brazilian economy.
The World Bank has forced the state to add to its constitution a set of articles that have ignited domestic political conditions. Despite Brazil’s response to all conditions, the crisis worsened further and only 1% of Brazilians earn half of the national income.
Millions of people have fallen below the poverty line, prompting Brazil’s leaders to borrow again from the IMF by $ 5 billion, believing it is the way out of the crisis.
Things deteriorated further and Brazil became the most corrupt and expulsive country for immigrants and the largest crime, drug and debt abuse in the world (public debt multiplied by 9 in 12 years … at the end of 2002 the currency collapsed).
Until 2003, the Brazilians elected their president, Lula da Silva, a poor boy who suffered from hunger and the injustice of arrest(he was working as a shoe scanner) .. Atfirst ; everyone was afraid of him .. Businessmen said he will take our money and nationalize us.. The poor said he will steal to make up for the deprivation hesuffered .. But he did not ..
instead; hesaid “Austerity is not making everyonepoor, it is that the state dispenses many luxuries to support the poor”. He also said his famous speech: (The IMF only succeeded in destroying countries)thus he relied on the people of his country, and put an item in the state budget called (direct social benefits), which is spent in the form of direct financial salaries for poor families.
This support was paid to 11 million families, including 64 million Brazilians. Of course the question is where did the moneycomefrom if Brazil is bankrupted? he raised taxes on all (except those supported by the subsidy program).
This means raising taxes on businessmen and the rich categories of the people. The question is, did the businessmen agree?
They were simply happy as he gave them great facilities in investment, the mechanism to operate their businesses, the granting of land for free, the facilitation of licenses and the granting of small interest loans to help them open up new markets (In addition, as the income of the poor increases their purchase of the businessmen’s products willrise and so the sales volume will multiply)Thus they did not feel that it is a levy .. They pay taxes for facilities that made them earn more .
Only 3 years later, 2 million Brazilian immigrants returned and 1.5 million foreigners came to invest and live in Brazil.
In four years, he repaid all the IMF’s debt. The IMF even borrowed $ 14 billion from Brazil during the global crisis in 2008, just five years after Lula da Silva’s rule.It is the same fund that wanted Brazil to go bankrupt in 2002 and refused to lend it to repay the loan interest.
(Brazil reached the sixth richest country in the world).
Thus, the rise from underdevelopment is not impossible. It is a will and a successful administration. It can occur in a few years only and the method for that is known and defined.
Industry and agriculture, takingcare of the poor and education, nothing else.