Geisel administration.2C distens.C3.A3o.2C and the 1973 oil shock Brazilian military government

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a dodge 1800 first prototype engineered neat ethanol-only engine. exhibit @ memorial aeroespacial brasileiro, cta, são josé dos campos.



the brazilian fiat 147 first modern automobile launched market capable of running on neat hydrous ethanol fuel (e100).


president geisel sought maintain high economic growth rates of brazilian miracle tied maintaining prestige of regime, while seeking deal effects of 1973 oil crisis. geisel removed long-time minister of finance antônio delfim netto. maintained massive state investments in infrastructure—highways, telecommunications, hydroelectric dams, mineral extraction, factories, , atomic energy. required more international borrowing , increased state s debt.


fending off nationalist objections, opened brazil oil prospecting foreign firms first time since 1950s. tried reduce brazil s reliance on oil, signing 10 billion usd agreement west germany build 8 nuclear reactors in brazil. during time ethanol production program promoted alternative gasoline , first ethanol fueled cars produced.


brazil suffered drastic reductions in terms of trade result of 1973 oil crisis. in 1970s, performance of export sector undermined overvalued currency. trade balance under pressure, oil shock led sharply higher import bill. thus, geisel government borrowed billions of dollars see brazil through oil crisis. strategy effective in promoting growth, raised brazil s import requirements markedly, increasing large current-account deficit. current account financed running foreign debt. expectation combined effects of import substitution industrialization , export expansion bring growing trade surpluses, allowing service , repayment of foreign debt.



u.s. president jimmy carter addresses brazilian congress, 30 march 1978


brazil shifted foreign policy meet economic needs. responsible pragmatism replaced strict alignment united states , worldview based on ideological frontiers , blocs of nations. because brazil 80% dependent on imported oil, geisel shifted country uncritical support of israel more neutral stance on middle eastern affairs. government recognized people s republic of china , new socialist governments of angola , mozambique, both former portuguese colonies. government moved closer latin america, europe, , japan.


brasil s intention build nuclear reactors west germany s created tensions did not want see nuclear brazil. after election of carter greater emphasis put on human rights. new harkin amendment limited american military assistance countries human rights violations. brazilian right-wingers , military viewed incursion on brazilian sovereignty , geisel renounced future military aid united states in april 1977.








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