Third Military Government
The third military government (1969–74), led by general Emílio Garrastazu Médici and guided by directives already adopted in the previous period, intensified the transformation process of Brazil's foreign relations. At the same time, as domestic politics hardened, the scope of the country's foreign influence contracted.
The decreeing of Institutional Act #5 (AI-5, 1968) marked a new phase of political freedom restrictions in Brazil. The succession of kidnappings of foreign ambassadors in Brazil embarrassed the military government. The anti-government manifestations and the action of guerrilla movements generated an increase in repressive measures. The "ideological frontiers" of Brazilian foreign policy were reinforced. By the end of 1970, the official minimum wage went down to US$40/month, and the more than one-third of Brazilian workforce which had their wages tied to it lost about 50% of its purchasing power in relation to the 1960 levels at the end of the Juscelino Kubitschek administration.
At the same time, the results of the economic policy consolidated the option for the national-development model. Because of these results, the country’s foreign economic connections were transformed, allowing its international presence to be broadened.
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