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Industry in Brazil

Industrialization during colonial times

During the colonial period, due to the rules of the economic theory of Mercantilism, no industrial activity could take place in Brazil. On the second half of the XVIII century, in 1785, Portugal actually prohibited factories in the colony, the reason for that was the portuguese didn't want to create competition with the English products sold in Brazil by the Portuguese.

The first important efforts in the industrialization direction started during the Empire. During the reign of Dom Pedro II, Brazilian businessmen like Irineu Evangelista de Souza, Visconde de Mauá, and foreign groups invested in railroads, shipyards and banks.

Unfortunately, Brazilian foreign policy favored agriculture, that meant that foreign competition would discourage continued investments in the industrialization process

Brazilian industrial sector

Most large industry is concentrated in the south and south east. The north east is traditionally the poorest part of Brazil, but it is beginning to attract new investment.

Brazil has the third most advanced industrial sector in The Americas. Accounting for one-third of GDP, Brazil's diverse industries range from automobiles, steel and petrochemicals to computers, aircraft, and consumer durables. With the increased economic stability provided by the Plano Real, Brazilian and multinational businesses have invested heavily in new equipment and technology, a large proportion of which has been purchased from U.S. firms.

Brazil has a diverse and sophisticated services industry as well. During the early 1990s, the banking sector accounted for as much as 16% of GDP. Although undergoing a major overhaul, Brazil's financial services industry provides local businesses with a wide range of products and is attracting numerous new entrants, including U.S. financial firms. The São Paulo and Rio de Janeiro stock exchanges are undergoing a consolidation and the reinsurance sector is about to be privatized.

The Brazilian government has undertaken an ambitious program to reduce dependence on imported oil. Imports previously accounted for more than 70% of the country's oil needs but in 2006 Brazil has achieved oil self sufficiency. Brazil is one of the world's leading producers of hydroelectric power, with a current capacity of about 58,000 megawatts. Existing hydroelectric power provides 92% of the nation's electricity. Two large hydroelectric projects, the 12,600 megawatt Itaipu Dam on the Paraná River--the world's largest dam--and the Tucurui Dam in Para in northern Brazil, are in operation. Brazil's first commercial nuclear reactor, Angra I, located near Rio de Janeiro, has been in operation for more than 10 years. Angra II is under construction and, after years of delays, is about to come on line. An Angra III is planned. The three reactors would have combined capacity of 3,000 megawatts when completed.[www.ipardes.gov.br/anuario_2005/2infraestrutura/qdo2_1_1.xls]

Proven mineral resources are extensive. Large iron and manganese reserves are important sources of industrial raw materials and export earnings. Deposits of nickel, tin, chromite, bauxite, beryllium, copper, lead, tungsten, zinc, gold, and other minerals are exploited. High-quality coking-grade coal required in the steel industry is in short supply.

Electricity

Electric Generating Capacity '
Year	1910	1920	1930	1940	1950	1960	1970	1980	1990	2000	2006
Capacity in gigawatts	0.157	0.367	0.779	1.24	1.88	4.80	11.23	33.47	53.05	73.71	96.63

Cars

Brazilian automobile production began in 1957, with an initial production of 1,166 units in the first year. Most of the production is concentrated in the states São Paulo, Minas Gerais and Paraná.