Brazil

Brazil (pronounced /brəˈzɪl/, listen (help·info)), officially the Federative Republic of Brazil (Portuguese: Brasil or República Federativa do Brasil), is a country in South America.^[2] It is the fifth-largest country by geographical area, the fifth most populous country, and the fourth most populous democracy in the world. The official language is Portuguese.^[3] Roman Catholicism is the predominant religion.

Bounded by the Atlantic Ocean on the east, Brazil has a coastline of over 7,367 kilometres (4577 miles).^[2] Brazil borders every nation on the South American continent except Ecuador and Chile. Venezuela, Suriname, Guyana and the department of French Guiana are to the north, Colombia to the northwest, Bolivia and Peru to the west, Argentina and Paraguay to the southwest, and Uruguay to the south.^[2] Numerous archipelagos are part of the Brazilian territory, such as Penedos de São Pedro e São Paulo, Fernando de Noronha, Trindade and Martim Vaz and Atol das Rocas.^[2]^[4]

Brazil is crossed by both the Equator and Tropic of Capricorn, and as such is home to a vast array of flora and fauna, natural environments, and extensive natural resources. Its region within the tropics is, by far, the largest of any country; about twice as large as that of Australia. The Brazilian population is concentrated along the coastline and in a few large urban centers in the interior. While Brazil is one of the most populous nations in the world, population density drops dramatically as one moves inland.^[5]

Brazil was a colony of Portugal from the landing of Pedro Álvares Cabral in 1500 until its independence in 1822. Initially independent as the Brazilian Empire, the country has been a republic since 1889, although the bicameral legislature (now called Congress) dates back to 1824, when the first constitution was ratified. Its current Constitution defines Brazil as a Federal Republic.^[3] The Federation is formed by the union of the States, the Federal District, and the Municipalities.^[3] There are currently 26 States and 5,564 Municipalities.^[6]

One of the ten largest economies in the world, the country has a diversified middle-income economy with wide variations in development levels and mature manufacturing, mining and agriculture sectors. Technology and services also play an important role and are growing rapidly. Brazil is a net exporter, having gone through free trade and privatization reforms in the 1990s.

History

Main article: History of Brazil

Origins

Main article: Indigenous peoples in Brazil

Brazilian natives, by Jean-Baptiste Debret.

Within Brazil's current borders, most native tribes who were living in the land by the year 1500 are thought to have descended from the first wave of migrants from North Asia (Siberia), who are believed to have crossed the so-called Bering Land Bridge at the end of the last Ice Age, around 9000 BC. At the time of European discovery, the territory of modern Brazil had as many as 2,000 nations and tribes, an estimated total population of nearly 3,000,000 Amerindians. A somewhat dated linguistic survey found 188 living indigenous languages with 155,000 total speakers. On 18 January 2007, Fundação Nacional do Índio reported that it had confirmed the presence of 67 different uncontacted tribes in Brazil, up from 40 in 2005. With this addition Brazil has now overtaken the island of New Guinea as the country having the largest number of uncontacted peoples. When the Portuguese arrived in 1500, the Indians were mostly semi-nomadic tribes, living mainly on the coast and along the banks of major rivers.

Unlike Christopher Columbus, who thought he had reached the East Indies, the Portuguese, most notably by Vasco da Gama, had already reached India via the Indian Ocean route when they reached Brazil. Nevertheless the word índios ("Indians"), was by then established to designate the peoples of the New World and stuck being used today in the Portuguese language to designate these peoples, while the people of India, Asia are called indianos in order to distinguish the two peoples. Initially, the Europeans saw the natives as noble savages, and miscegenation of the population began right away. Tribal warfare, cannibalism and the pursuit of brazilwood for its treasured red dye convinced the Portuguese that they should civilise the Indians.^[7]

Colonization

Main article: Colonial Brazil

Map of Brazil issued by the Portuguese explorers in 1519.

Initially Portugal had little interest in Brazil, mainly because of high profits gained through commerce with Indochina. After 1530, the Portuguese Crown devised the Hereditary Captaincies system to effectively occupy its new colony, and later took direct control of the failed captaincies.^[8]^[9] Although temporary trading posts were established earlier to collect brazilwood, used as a dye, with permanent settlement came the establishment of the sugar cane industry and its intensive labor. Several early settlements were founded across the coast, among them the colonial capital, Salvador, established in 1549 at the Bay of All Saints in the north, and the city of Rio de Janeiro on March 1567, in the south. The Portuguese colonists adopted an economy based on the production of agricultural goods that were exported to Europe. Sugar became by far the most important Brazilian colonial product until the early 18th century.^[10]^[11] Even though Brazilian sugar was reputed as being of high quality, the industry faced a crisis during the 17th and 18th centuries when the Dutch and the French started producing sugar in the Antilles, located much closer to Europe, causing sugar prices to fall.

During the 18th century, private explorers who called themselves the Bandeirantes found gold and diamond deposits in the state of Minas Gerais. The exploration of these mines were mostly used to finance the Portuguese Royal Court's expenditure with both the preservation of its Global Empire and the support of its luxury lifestyle at mainland. The way in which such deposits were exploited by the Portuguese Crown and the powerful local elites, however, burdened colonial Brazil with excessive taxes. Some popular movements supporting independence came about against the taxes established by the colonial government, such as the Tiradentes in 1789, but the secessionist movements were often dismissed by the authorities of the ruling colonial regime. Gold production declined towards the end of the 18th century, starting a period of relative stagnation of the Brazilian hinterland.^[12] Both Amerindian and African slaves' man power were largely used in Brazil's colonial economy.^[13]

In contrast to the neighbouring Spanish possessions in South America, the Portuguese colony of Brazil kept its territorial, political and linguistic integrity due to the action of the Portuguese administrative effort. Although the colony was threatened by other nations across the Portuguese rule era, in particular by Dutch and French powers, the authorities and the people ultimately managed to protect its borders from foreign attacks. Portugal had even to send bullion to Brazil, a spectacular reversal of the colonial trend, in order to protect the integrity of the colony.^[14]

Empire

Main article: Empire of Brazil

Emperor Dom Pedro II of Brazil, in 1873.

In 1808, the Portuguese court, fleeing from Napoleon’s troops who had invaded Portugal, established themselves in the city of Rio de Janeiro, which thus became the seat of government of Portugal and the entire Portuguese Empire, even though being located outside of Europe. Rio de Janeiro was the capital of the Portuguese empire from 1808 to 1815. After then the United Kingdom of Portugal, Brazil and the Algarves (1815-1825) was created with Lisbon as its capital. After João VI returned to Portugal in 1821, his heir-apparent Pedro became regent of the Kingdom of Brazil, within the United Kingdom of Portugal, Brazil and the Algarves. Following a series of political incidents and disputes, Brazil achieved its independence from Portugal on September 7, 1822. On October 12, 1822, Dom Pedro became the first Emperor of Brazil, being crowned on December 1, 1822. Portugal would recognize Brazil as an independent country in 1825.

In 1824, Pedro closed the Constituent Assembly, stating that the body was "endangering liberty". Pedro then produced a constitution modeled on that of Portugal (1822) and France (1814). It specified indirect elections and created the legislative, executive and judicial branches of government; however, it also added a fourth branch, the "moderating power", to be held by the Emperor. Pedro's government was considered economically and administratively inefficient. Political pressures eventually made the Emperor step down on April 7, 1831. He returned to Portugal leaving behind his five-year-old son Pedro II. Until Pedro II reached maturity, Brazil was governed by regents from 1831 to 1840. The regency period was turbulent and marked by numerous local revolts including the Male Revolt, the largest urban slave rebellion in the Americas, which took place in Bahia in 1835.^[15]

On July 23, 1840, Pedro II was crowned Emperor. His government was marked by a substantial rise in coffee exports, the War of the Triple Alliance, and the end of slave trade from Africa in 1865, although slavery in Brazilian territory would only be abolished in 1888. Brazil stopped trading slaves from Africa in 1850, with the Eusébio de Queirós law,^[16] and abandoned slavery altogether in 1888, thus becoming the last country of the Americas to ban slavery.^[17]^[18] When slavery was finally abolished, a large influx of European immigrants took place.^[19]^[20]^[21] By the 1870s, the Emperor's control of domestic politics had started to deteriorate in face of crises with the Catholic Church, the Army and the slaveholders. The Republican movement slowly gained strength. In the end, the empire fell due to a military coup d'etat and because the dominant classes no longer needed it to protect their interests and deeply resented the abolition of slavery.^[22] Indeed, imperial centralization ran counter to their desire for local autonomy. By 1889 Pedro II had stepped down and the Republican system had been adopted to Brazil.

Republic

Main articles: History of Brazil (1889–1930), History of Brazil (1930–1945), History of Brazil (1945–1964), History of Brazil (1964–1985), and History of Brazil (1985–present)

The Chamber of Deputies of Brazil at the National Congress in Brasília, the capital of Brazil.

Pedro II was deposed on November 15, 1889 by a Republican military coup led by general Deodoro da Fonseca,^[23] who became the country’s first de facto president through military ascension. The country’s name became the Republic of the United States of Brazil. From 1889 to 1930, the dominant states of São Paulo and Minas Gerais alternated control of the presidency.^[24]^[25] A military junta took control in 1930. Getúlio Vargas took office soon after, and would remain as dictatorial ruler (with a brief democratic period in between), until 1945. He was re-elected in 1951 and stayed in office until his suicide in 1954. After 1930, successive governments continued industrial and agricultural growth and the development of the vast interior of Brazil.^[25]^[26] Juscelino Kubitschek's office years (1956-1961) were marked by the political campaign motto of plunging "50 anos em 5" (English: fifty years of development in five).^[27]

The military took office in Brazil in a coup d'état in 1964, and remained in power until March 1985, when it fell from grace because of political struggles between the regime and the Brazilian elites. In 1967 the name of the country was changed to Federative Republic of Brazil. Just as the Brazilian regime changes of 1889, 1930, and 1945 unleashed competing political forces and caused divisions within the military, so too did the 1964 regime change.^[28] Democracy was re-established in 1988 when the current Federal Constitution was enacted.^[29] Fernando Collor de Mello was the first president truly elected by popular vote after the military regime.^[30] Collor took office in March 1990. In September 1992, the National Congress voted for Collor's impeachment after a sequence of scandals were uncovered by the media.^[30]^[31] The vice-president, Itamar Franco, assumed the presidency. Assisted by the Minister of Finance at that time, Fernando Henrique Cardoso, Itamar Franco's administration implemented the Plano Real economic package,^[30] which included a new currency temporarily pegged to the U.S. dollar, the real. In the elections held on October 3, 1994, Fernando Henrique Cardoso ran for president and won, being reelected in 1998. Brazil's current president is Luiz Inácio Lula da Silva, elected in 2002 and reelected in 2006.

Government and politics

Main articles: Government of Brazil and Politics of Brazil

The National Congress.

The Brazilian Federation is based on the union of three autonomous political entities: the States, the Municipalities and the Federal District.^[3] A fourth entity originated in the aforementioned association: the Union.^[3] There is no hierarchy among the political entities. The Federation is set on six fundamental principles:^[3] sovereignty, citizenship, dignity of the people, social value of labor, freedom of enterprise, and political pluralism. The classic tripartite division of power, encompassing the Executive, Legislative and Judiciary branches under the checks and balances system, is formally established by the Constitution.^[3] The Executive and Legislative are organized independently in all four political entities, while the Judiciary is organized only in the Federal and State levels.

All members of the executive and legislative branches are directly elected.^[32]^[33]^[34] Judges and other judicial officials are appointed after passing entry exams.^[32] Voting is compulsory for those aged 18 or older.^[3] Four political parties stand out among several small ones: Workers' Party (PT), Brazilian Social Democracy Party (PSDB), Brazilian Democratic Movement Party (PMDB), and Democrats (formerly Liberal Front Party - PFL). Practically all governmental and administrative functions are exercised by authorities and agencies affiliated to the Executive. The form of government is Republican and democratic,^[3] and the system of government is Presidential.^[3] The President is Head of State and Head of Government of the Union and is elected for a four-year term,^[3] with the possibility of re-election for a second successive term. Currently the President of Brazil is Luiz Inácio Lula da Silva. He was elected on October 27, 2002,^[35] and re-elected on October 29, 2006.^[36] The President appoints the Ministers of State, who assist in governing.^[3] Legislative houses in each political entity are the main source of laws in Brazil. The National Congress is the Federation’s bicameral legislature, consisting of the Chamber of Deputies and the Federal Senate. Judiciary authorities exercise jurisdictional duties almost exclusively.

Law

Main article: Law of Brazil

The finance minister, Guido Mantega, and the former president of the Supreme Federal Court, Ellen Gracie Northfleet.

Brazilian Law is based on Roman-Germanic traditions.^[37] Thus, civil law concepts prevail over common law practices. Most of Brazilian law is codified, although non-codified statutes also represent a substantial part of the system, playing a complementary role. Court decisions set out interpretive guidelines; however, they are not binding on other specific cases except in a few situations. Doctrinal works and the works of academic jurists have strong influence in law creation and in law cases. The legal system is bases on the Federal Constitution, promulgated on October 5, 1988, and is the fundamental law of Brazil. All other legislation and court decisions must conform to its rules.^[38] As of April 2007, it has been through 53 Amendments. States also adopt their own Constitutions, but they must also not contradict the Federal Constitution.^[39] Municipalities and the Federal District do not have their own Constitutions; instead, they adopt "organic laws" (leis orgânicas).^[3]^[40] Legislative entities are the main source of statutes, although in certain matters judiciary and executive bodies may also enact legal norms.^[3]

Jurisdiction is administered by the judiciary entities, although in rare cases, the Federal Constitution allows the Federal Senate to pass on legal judgments.^[3] There are also specialized military, labor, and electoral courts.^[3] The highest court is the Supreme Federal Tribunal. This system has been criticised over the last decades due to the slow pace at which final decisions are issued. Lawsuits on appeal may take several years to resolve, and in some cases more than a decade to see definitive rulings.^[41]

Foreign relations and the military

Main articles: Foreign relations of Brazil and Military of Brazil

Brazilian Army troops before boarding for MINUSTAH peacekeeping mission in Haiti.

Brazil is a political and economic leader in Latin America.^[42]^[43] However, social and economic problems prevent it from becoming an effective global power.^[44] Between World War II and 1990, both democratic and military governments sought to expand Brazil's influence in the world by pursuing a state-led industrial policy and an independent foreign policy. More recently, the country has aimed to strengthen ties with other South American countries, engage in multilateral diplomacy through the United Nations and the Organization of American States.^[45] Brazil's current foreign policy is based on the country's position as a regional power in Latin America, a leader among developing countries, and an emerging world power.^[46] Brazilian foreign policy has generally reflected multilateralism, peaceful dispute settlement, and nonintervention in the affairs of other countries.^[47] The Brazilian Constitution also determines the country shall seek the economic, political, social and cultural integration of the nations of Latin America.^[3]^[48]^[49]^[50]

The Armed forces of Brazil comprise the Brazilian Army, the Brazilian Navy, and the Brazilian Air Force.^[3] The Military Police (States' Military Police) is described as an ancillary force of the Army by constitution, but under the control of each state's governor.^[3] The Brazilian armed forces are the largest in Latin America. The Brazilian Air Force is the aerial warfare branch of the Brazilian armed forces, being the largest air force in Latin America, with about 700 manned aircraft in service.^[51] The Brazilian Navy is responsible for naval operations and for guarding Brazilian territorial waters. It is the oldest of the Brazilian Armed forces and the only navy in Latin America that operates an aircraft carrier, the NAeL São Paulo (formerly FS Foch of the French Navy).^[52] Finally, the Brazilian Army is responsible for land-based military operations, with a strength of approximately 190,000 soldiers.

Subdivisions

Main article: Subdivisions of Brazil

Politically, Brazil is a Federation of twenty-six states (estados) and one federal district (Distrito Federal) which contains the capital city, Brasília. The states are subdivided into municipalities. States are based on historical, conventional borders and have developed throughout the centuries; though some boundaries are arbitrary. The federal district is not a state on its right, but shares some characteristics of a state and some of a municipality. The national territory was divided in 1969 by the Brazilian Institute of Geography and Statistics (IBGE), for demographic and statistical purposes, into five main regions: North, Northeast, Central-West, Southeast and South.

In 1943, with the entrance of Brazil into the Second World War, the Vargas regime detached seven strategic territories from the border of the country in order to administrate them directly: Amapá, Rio Branco, Acre, Guaporé, Ponta Porã, Iguaçu and the archipelago of Fernando de Noronha. After the war, the first three territories were retained as states, with Rio Branco and Guaporé being renamed Roraima and Rondônia, respectively. Ponta Porã and Iguaçu resorted to territorial status. In 1988, Fernando de Noronha became part of Pernambuco.

In 1960, the square-shaped Distrito Federal was carved out of Goiás in preparation for the new capital, Brasília. The previous federal district became the state of Guanabara until in 1975 it was merged with the state of Rio de Janeiro, becoming the municipality of Rio de Janeiro.

In 1977, Mato Grosso was split into two states. The northern area retained the name Mato Grosso while the southern area became the state of Mato Grosso do Sul, with Campo Grande as its capital. The new Mato Grosso do Sul incorporated the territory of Ponta Porã and the northern part of Iguaçu. Central Iguaçu went to Paraná, and southern Iguaçu went to Santa Catarina. In 1988, the northern portion of Goiás became the state of Tocantins, with Palmas as its capital.

Regions

Main article: Regions of Brazil

The five regions of Brazil.

The North region covers 45.27% of the surface of Brazil, and has the lowest number of inhabitants. With the exception of Manaus, which hosts a tax-free industrial zone, and Belém, the biggest metropolitan area of the region, it is fairly unindustrialized and undeveloped. It accommodates most of the rainforest vegetation of the world and many indigenous tribes. The Northeast region is inhabited by about 30% of Brazil's population.^[53] It is culturally diverse, with roots set in the Portuguese colonial period, and in Amerindian and Afro-Brazilian elements. It is also the poorest region of Brazil,^[54] and suffers from long periods of dry climate.^[55] The Central-West region has low demographic density when compared to the other regions,^[56] mostly because a part of its territory is covered by the world's largest marshlands area, the Pantanal^[57] as well as a small part of the Amazon Rainforest in the northwest. However, much of the region is also covered by Cerrado, the largest savanna in the world. The central-west region contributes significantly towards agriculture.^[58]

The Southeast region is the richest and most densely populated.^[56] It has more inhabitants than any other South American country, and hosts one of the largest megalopolises of the world, and has the country's two largest cities; São Paulo and Rio de Janeiro. The region is very diverse, including the major business center of São Paulo, the historical cities of Minas Gerais and its capital Belo Horizonte, the third-largest metropolitan area in Brazil, the beaches of Rio de Janeiro, and the coast of Espírito Santo. The South region is the wealthiest by GDP per capita,^[54] and has the highest standard of living in the country.^[59] It is also the coldest region of Brazil,^[60] with occasional occurrences of frost and snow in some of the higher altitude areas.^[61] It has been settled mainly by European immigrants, mostly of Italian, German and Portuguese ancestry, being clearly influenced by these cultures.

States

Main article: States of Brazil

The twenty-six states of Brazil.

The Equatorial line cuts through the state of Amapá, in the North, the Tropic of Capricorn line cuts through the state of São Paulo. Rio Grande do Sul, the southernmost Brazilian state, for comparison: the entire European continent is further to the north than Rio Grande do Sul is to the south.^[62] Acre is in the far west side of the country, covered by the Amazon forest; Paraíba is the most oriental state of Brazil; Cabo Branco, in the city of João Pessoa, is the easternmost point of Brazil and Americas. Along with Paraná and Rio Grande do Sul, Santa Catarina is a state in temperate climate.

São Paulo is the economic center of Brazil. Agriculture, industry, commerce and services are the most diversified of Brazil; although a large proportion is exported to other states and other countries, the consumer market of the state is also the biggest in the country. Differently from other states, where settlement started in the coast and moved inwards, in São Paulo the center of the economy was in a non-coastal city. The state of Rio de Janeiro has as capital the city of Rio de Janeiro, the most well known Brazilian city, with famous landmarks. Old books may still bring references to the state of Guanabara: after the Federal District (capital of the Republic) was moved to Brasília, in 1960, the city of Rio de Janeiro was elevated to the condition of state of Guanabara (name of the large bay which washes the city or Rio); however, in 1975, Guanabara was incorporated to the state of Rio, and returned to the condition of municipality, with the old name of city of Rio de Janeiro.

Geography

Main article: Geography of Brazil

Mount Roraima.

Brazil occupies roughly half of South America, bordering the Atlantic Ocean. Brazil covers a total area of 8,514,215 km² (3,287,357 sq mi) which includes 8,456,510 km² (3,265,076 sq mi) of land and 55,455 km² (21,411 sq mi) of water. Brazil is bordered by the countries of Argentina, Bolivia, Colombia, French Guiana, Guyana, Paraguay, Peru, Suriname, Uruguay and Venezuela. It spans four time zones, the westernmost of which, in Acre State, is the same as Eastern Standard Time in the United States. The time zone of the capital (Brasília) and of the most populated part of Brazil along the east coast is two hours ahead of Eastern Standard Time, except when it is on its own daylight saving time, from October to February. The Atlantic islands are in the easternmost time zone.

Brazil has one of the world's most extensive river systems, with eight major drainage basins, all of which drain into the Atlantic Ocean. Major rivers include the Amazon, the largest river in terms of volume of water, and the second-longest in the world; the Paraná and its major tributary, the Iguaçu River, where the Iguaçu Falls are located; the Negro, São Francisco, Xingu, Madeira and the Tapajós rivers. Several small islands and atolls in the Atlantic Ocean are part of Brazil: Abrolhos, Atol das Rocas, Penedos de São Pedro e São Paulo, and Trindade and Martim Vaz.

Brazilian topography is diverse, including hills, mountains, plains, highlands, scrublands, savannas, rainforests, and a long coastline. The extensive low-lying Amazon Rainforest covers most of Brazil’s terrain in the North, whereas small hills and low mountains occupy the South. Along the Atlantic coast there are several mountain ranges, with a highest altitude of roughly 2,900 meters (9,500 feet (2,900 m)). The highest peak is the 3,014 metres (9,890 ft) Pico da Neblina (Peak of Mist/Fog or Misty Peak) in Guiana's highlands.^[63]^[64]

Climate

Main article: Climate of Brazil

Catarina, the first hurricane in the South Atlantic Ocean.

Brazil's climate has little seasonal variation since most of the country is located within the tropics. However, although 90% of the country is located within the tropical zone, year-long climate varies considerably from the mostly tropical North (the equator traverses the mouth of the Amazon) to temperate zones below the Tropic of Capricorn (23°27' S latitude), which crosses the country at the latitude of the city of São Paulo. Brazil has five climatic regions: equatorial, tropical, semiarid, highland tropical, and subtropical.

Temperatures along the equator are high, with averages above 25 °C (77 °F),^[65]^[66]^[67] and occasionally reaching the summer extremes of up to 40 °C (104 °F) in the temperate zones.^[68]^[69]^[70] Southern Brazil has a subtropical temperate weather, normally experiencing frost in the winter (June-August), and snowfall in the mountainous areas, such as Rio Grande do Sul and Santa Catarina. Precipitation levels vary widely. They are higher in the humid Amazon Basin, and lower in the somewhat arid landscapes of the northeast. Most of Brazil has moderate rainfall of 1,000 to 1,500 millimeters a year, with most of the rain falling in the summer (between December and April), south of the Equator. The Amazon region is notoriously humid, with rainfall generally of more than 2,000 millimeters per year, getting as high as 3,000 millimeters in parts of the western Amazon and near Belém. Despite high annual precipitation, the Amazon rain forest has a three-to-five-month dry season, the timing of which varies according to location north or south of the equator.

Wildlife

Main article: Wildlife of Brazil

The Jaguar is a typical animal of the Brazilian rain forests.

Brazil's large area comprises different ecosystems, such as Amazon Rainforest, Atlantic Forest and Cerrado, which together sustain some of the world's greatest biodiversity. Because of the country's intense economic and demographic growth, Brazil's ability to protect its environmental habitats has increasingly come under threat. Extensive logging in the nation's forests, particularly the Amazon, both official and unofficial, destroys areas the size of a small country each year, and potentially a diverse variety of plants and animals.^[71] Brazil's environment is under threat because of the rapid economic and demographic rise. Extensive legal and illegal logging destroys forests the size of a small country per year, and with it a diverse series of species through habitat destruction and habitat fragmentation.^[72] Between 2002 and 2006, an area of the Amazon Rainforest equivalent in size to the State of South Carolina was completely deforested for the purposes of raising cattle and woodlogging.^[73] By 2020, at least 50% of the species resident in Brazil may become extinct.^[73]

There is a general consensus that Brazil has the highest number of both terrestrial vertebrates and invertebrates of any single country in the world.^[74] Also, Brazil has the highest primate diversity,^[74] the highest number of mammals,^[74] the second highest number of amphibians and butterflies,^[74] the third highest number of birds,^[74] and fifth highest number of reptiles.^[74] There is a high number of endangered species,^[75] many of them living in threatened habitats such as the Atlantic Forest.

Economy

Main article: Economy of Brazil

São Paulo is the largest financial center of the country.

Brazil's GDP (PPP and Nominal) is the highest of Latin America with large and developed agricultural, mining, manufacturing,^[76] and service sectors, as well as a large labor pool. The country has been expanding its presence in international financial and commodities markets, and is regarded as one of the group of four emerging economies called BRIC. Major export products include aircraft, coffee, automobiles, soybean, iron ore, orange juice, steel, ethanol, textiles, footwear, corned beef and electrical equipment.^[77] Brazil has a diversified middle income economy with wide variations in development levels. Most large industry is agglomerated in the Southern and South East states. The Northeast is the poorest region of Brazil, but it has attracted new investments in infrastructure for the tourism sector and intensive agricultural schemes.^[78]^[79]^[80]^[81] According to the International Monetary Fund and the World Bank, Brazil has the ninth largest economy in the world by purchasing power parity (PPP)^[82]^[83] and tenth largest at market exchange rates.^[84]^[85] Brazil had pegged its currency, the real, to the U.S. dollar in 1994. However, after the East Asian financial crisis, the Russian default in 1998^[86] and the series of adverse financial events that followed it, the Brazilian central bank has temporarily changed its monetary policy to a managed-float scheme while undergoing a currency crisis, until definitively changing the exchange regime to free-float in January 1999.^[87]

Brazil received an IMF rescue package in mid-2002 in the amount of USD 30.4 billion,^[88]^[89] a record sum at that time. The IMF loan was paid off early by Brazil's central bank in 2005 (the due date was scheduled for 2006).^[90] One of the issues the Brazilian central bank is currently dealing with is the excess of speculative short-term capital inflows to the country in the past few months, which might explain in part the recent downfall of the U.S. dollar against the real in the period.^[91] Nonetheless, foreign direct investment (FDI), related to long-term, less speculative investment in production, is estimated to be USD 193.8bn for 2007.^[92] Inflation monitoring and control currently plays a major role in Brazil's Central Bank activity in setting out short-term interest rates as a monetary policy measure.^[93]

Energy policy

Main article: Energy policy of Brazil

Itaipu Dam, the world's largest hydroelectric plant by energy generation.

Brazil is the 10th largest energy consumer in the world and the largest in Latin America. At the same time it is also a large oil and gas producer in the region and the world's largest ethanol producer. Because of its ethanol fuel production Brazil has been sometimes described as a bio-energy superpower.^[94] Brazil's ethanol fuel is produced from sugar cane, the world's largest crop in both production and export tonnage.

With the 1973 oil crisis the Brazilian government initiated in 1975 the Pró-Álcool program. The Pró-Álcool or Programa Nacional do Álcool (National Alcohol Program) was a nation-wide program financed by the government to replace automobile fuels derived from fossil fuels in favor of ethanol. The program successfully reduced the number of cars running on gasoline in Brazil by 10 million, thereby reducing the country's dependence on oil imports. Brazil's production and consumption of biodiesel relative to its energy matrix is expected to reach to 2% of diesel fuel in 2008 and 5% in 2013.^[95] Brazil is the third largest hydroelectricity producer in the world after the People's Republic of China and Canada. In 2004 hydropower accounted 83% of Brazil power production.^[95] The gross theoretical capability exceeds 3,000 TWh per annum, of which 800 TWh per annum is economically exploitable.^[96] Also in 2004, Brazil produced 321TWh of hydropower, which was the third largest hydropower production in the world.^[97] The installed capacity is 69 GW.^[97] Brazil co-owns Itaipu hydroelectric power plant on the P

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