The Brazilian Borrowing Experience: From Miracle to Debacle and Back

Abstract

Since 1981 the Brazilian economic and political system has passed through a period of crisis and upheaval. The country's foreign debt has been at the center of its economic problems, and the debt crisis has defined many of the contours of the political crisis. This article will examine Brazil's accumulation of the Third World's largest foreign debt and the consequences of both the debt and the debt crisis for the Brazilian pattern of economic and political development. The article will focus on the role of economic interests, specifically the role of different sectors of the Brazilian business community, in the borrowing boom and bust.