Transitional Period
In 1984, many public demonstrations were held in major Brazilian cities which made it clear that military rule could not continue. Brazilians started to demand change in the electoral system, aiming to directly elect the President (Diretas Já). As public pressure built up, the opposition Brazilian Democratic Movement Party (Partido do Movimento Democrático Brasileiro, PMDB) proposed a law to implement this change (Emenda Dante de Oliveira). As Congress was controlled by the pro-government Democratic Social Party (PDS, formerly ARENA), the law failed to pass.
Tancredo Neves of Minas Gerais, Getúlio Dornelles Vargas' minister of justice in the 1950s, and former federal deputy, senator, and prime minister seized the momentum. Neves had a reputation of honesty.
His abilities allowed him to build up an alliance between the PMDB and defectors from the (PDS) who founded the Liberal Front Party (PFL). The Democratic Alliance (Aliança Democrática) presented itself as supporting with 1984 demands for political change and end of military rule.
It presented Neves as an opposition candidate against Paulo Maluf. Tancredo Neves was elected by majority vote of the Parliament on January 15, 1985. However, Neves collapsed the night before his inauguration in March, and died on April 21, passing the presidency to Vice President José Sarney (president, 1985–90), long-time supporter of the military regime. The hope that 1985 would provide a quick transition to a new regime faded as Brazilians watched the turn of events in a state of shock. Like the regime changes of 1822, 1889, 1930, 1946, and 1964, the 1985 change also proved to be long and difficult.
Sarney's Government fulfilled Tancredo's promise of passing a constitutional amendment to the Constitution inherited from the military regime so as to summon elections for a National Constituent Assembly, with full powers to draft and enact a new democratic constitution for the country. Ulysses Guimarães, who led the civilian resistance to the military rule, was chosen by his fellow Assembly members to preside over the Constituent Assembly, that was in session from February 1987 until October 1988.
The National Constituent Assembly proclaimed a new constitution in October 1988 and restored civil and public rights such as freedom of speech, independent Public Prosecutors (Ministério Público), economic freedom, direct and free elections and universal health system. It also decentralized government, empowering local and state governments.
As the political transition developed, the economy suffered high inflation and stagnancy. Sarney tried to control inflation with many economic acts, or Plans: Plano Cruzado 1, Plano Cruzado 2, Plano Verão. All of them included government control over prices, price freezes and ultimately changing the national currency. During Sarneys's presidency, Brazil had three currency units: Cruzeiro, Cruzado and Cruzado Novo. Economic domestic troubles led to canceling payments of Brazilian International Debt in 1988. This closed international financial markets for Brazil and the economic situation worsened.
Despite the initial decrease, inflation returned higher than before economic plans, achieving 84% a month at 1990. The government's inability to deal with inflation ultimately led parties that had led the political transition to lose the 1989 elections, the first elections under the new Constitution and the first presidential elections to take place by direct popular ballot since the 1964 military coup.
Read more about this topic: History Of Brazil Since 1985
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