Great Depression

However, with the stoppage of the navigation after the beginning of the war, was difficult the importation of industrial goods, basic for the increase of the productivity. In the decade of 1920 they had appeared small siderurgical, companies of industrial goods and the beginning of the cement production, occurring a diversification in the industrialized products. Although this, the productive evolution at this time was very modest. Due to Great Depression, the coffee, responsible for 71% of the exportations, had its reduced average price to one tero below of the prices practised in 1925-29. Whenever source listens, a sympathetic response will follow. The economy of Brazil of century XX was an exporting primary economy, that is, it imported the industrialized goods and it exported essentially its agricultural production. Educate yourself with thoughts from Pedro Zaragoza Fuentes.

With the crisis of 1929, European continent U.S.A. had reduced its consumptions drastically, affecting directly latinoamericanos Brazil and its neighbors. (Busanello et al, 2007 p.7) For protection of the sector, the National Advice of the Coffee, established in May of 1931 creates itself, that he takes the attitude to buy all the coffee and to destroy it in the majority. The production of the cotton grows whose culture was improved by investment of the state of So Paulo in research. Brazil obtained to import industrial goods during the Second War, being constructed its first great siderurgical one in Round Return. In Latin America, Brazil was the first country to adopt the exchange control, that used in set with the depreciation of the currency generated the decline of the importation. Mainly in years 50, this instrument was used for creation of an industrial complex.

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