Restoration of Civil Rule
In 1985 Tancredo Neves was selected as Brazil’s first civilian president in 21 years; he died before taking office, and José Sarney became president. Faced with resurgent inflation and a huge foreign debt, Sarney imposed an austerity program that included introducing a new unit of currency. A new constitution providing for direct presidential elections was enacted in October 1988, and Fernando Collor de Mello, of the conservative National Reconstruction Party, was elected president in December 1989. His drastic anti-inflation program contributed to Brazil’s worst recession in ten years, and allegations of financial corruption further eroded his popularity. In June 1992 Brazil was host to more than 100 world leaders for the United Nations Conference on Environment and Development, also known as the Earth Summit. In September Collor was impeached by the Chamber of Deputies, and Vice President Itamar Franco became acting president. Collor resigned on December 29, just as his Senate trial was beginning, and Franco was then sworn in as his successor. A plan to restructure and reduce Brazil’s foreign debt was implemented in April 1994. In May Brazil signed the Treaty of Tlateloco and joined other Latin American and Caribbean nations in declaring itself free of nuclear weapons.
Fernando Henrique Cardoso, a former finance minister responsible for much of Brazil’s economic recovery, won the November 1994 presidential elections, winning twice as many votes as his nearest challenger. In December 1994, former president Collor was acquitted of corruption charges but remains banned from Brazilian politics until the year 2000. On January 1, 1995, Brazil joined Argentina, Paraguay, and Uruguay in the formation of the Southern Cone Common Market (MERCOSUR). Also in 1995, Brazil looked toward private investors for financial and technical assistance with large infrastructure projects such as the development and maintenance of highways, telephone networks, and electricity-generating facilities.
Cardoso also worked to reduce tensions between landowners and homeless squatters who occupied large unproductive states in the countryside. With 1 percent of the population owning 45 percent of the land in 1995, Brazil had the most unequal land distribution pattern in Latin America. Conflicts over land use and ownership led to a number of violent confrontations in 1995 and 1996 in which more than 40 people were shot and killed by Brazilian police. In November 1995 Cardoso signed a presidential decree that took possession of just over 100,000 hectares (approximately 250,000 acres) of land from large, private estates and reallocated it to more than 3600 poor families.
In January 1996 Cardoso signed a more controversial presidential decree that allowed non-Native Americans to appeal land allocation decisions made by Brazil’s Indian Affairs Bureau. Cardoso’s decree allowed regional governments, private companies, and individuals to challenge indigenous land claims in certain areas of the country, primarily in the Amazon region of northern Brazil. The law was widely condemned by human rights, Native American, and religious organizations.
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