Evolution of Brazilian Agricultural Policy: 1980-2010

Abstract

The aim of this article is to show characteristics of the agricultural policy stricto sensu that favored the agribusiness and agricultural development in Brazil in the past 30 years. To understand this process, the article has a brief description of the instruments of agricultural policy adopted by the Government during this period, so as to adapt to the demands of the WTO and the constraints of the economic situation. In the first phase, from 1964 to 1985, was achieved significantly increase agricultural production by guaranteeing domestic supply, which was a important bottleneck of Brazilian economy in the period pre-1964. Agricultural modernization was achieved with a high social cost, but it should be noted that this issue was not a central concern of the military governments. In the second phase (1985-2001), when Brazil starts the redemocratization, agricultural policy also changes and is consistent with macroeconomic objectives. By that time it was necessary to reduce the fiscal deficit and pay foreign debt. This goal was achieved with the large surpluses generated by the agribusiness despite the drastic reduction of agricultural subsidies. The third period (2002-present) seeks to reconcile the promotion of agribusiness with the reduction of poverty, which was an outstanding democratization agenda and which had been postponed according to the need of solving the fiscal and inflation problems from the 80's. Once solved the problem of inflation, the State regain its planning capacity and begins to attack social problems