FHC Economic

With this, also it had the cauterization of the economy (swell of the tertiary sector) in reason of the explosion of the informal economy, beyond the canalization of the violence and the amazing growth of social movements, over all the MST. Not obstinate, & occurred a gradual denationalization of economy (BARROS; SON). The national industry lost force front to the foreigner. The privatizations of government FHC had been significant to raise the degree of participation of external companies in Brazil. The State was then more vulnerable to the flows of capitals, international merchandises and services. We are more vulnerable to the crises in other countries.

Therefore, so we were affected by the Asian crisis (1997), Russian (1998), Argentine (1999), among others. The State lost space and power of pressure in many economic decisions, that had passed to be determined by the globalization market, international banks, speculators, billions of the communications, the transports, the energy, etc. We start to more than depend each time smart money and on hot money, that is, volatile capitals of short term of speculators who only serve to cover the gap of our trade balance. Such capitals come to here in search of the high proportionate yield for the public headings. To get worse the situation still more, with successive deficits in the balance of payments (due to parity real dollar/) and with ‘ ‘ masque’ ‘ of our international reserves, government was obliged to assume and to increase the external financing.

In this period our external debt gave plus a jump. Our liquid external liabilities reached nothing of what less 256 billion dollar in March of 1998. 3. Considerate Final Considering all the presented information already from the confrontation between different authors of the Real Plan, we can establish some conclusions. If the objective of the new currency was to subject the inflationary process, that already came hindering the growth supported of the economy since 1974 middle, the Real Plan was extremely efficient. With the creation of a indexation that absorbed the inflationary pressures and the consequent creation of a new free currency of the problems of the previous one, we obtain to surpass this problem. However, the conditions that had allowed the overcoming of the inflation had generated the medium and long run others as many problems, as bankruptcies in social mass, unemployment, problems of all the orders, denationalization of the economy, increase of the debt external, bigger vulnerability to the flows of international capitals, etc. Thus, the Plan was agile and fast in finder a problem that asphyxia the Brazilian economic growth it has two decades. However, it established conditions to develop others as many social problems and economic that could be minimized or be diminished case the subsequent politics to the plan was adopted by little time or of a different form

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