After President
Getúlio Vargas committed suicide in 1954, his Vice-President
João Café Filho fulfilled the rest of his term until the elections of 1955 which were held in October. Juscelino Kubitschek decided to run for president in a race with two other candidates. He ran with the slogan of “fifty years progress in five” and developed a platform that highlighted energy, agriculture, industry, education, and transportation. He also stressed a wish to diversify Brazil’s economy and open it up to foreign investment. He was also a vocal supporter of moving the government capital out of Rio de Janeiro, to a more central location in the country, to promote regional development. Before Kubitschek was even inaugurated, however, rumors of a military coup were brewing and the opposition party
União Democrática Nacional (National Democratic Union or UDN) became vocal over his close ties to Vargas and his alleged sympathy towards communists.
Henrique Teixeira Lott, then Minister of War, and a coalition of high ranking military officers staged a countercoup to ensure that Juscelino Kubitschek was inaugurated. Juscelino Kubitschek would be inaugurated as the 21st President of Brazil on 31 January 1956. Kubitschek campaigned on establishing a central health bureaucracy that previously did not exist to address rural health issues more adequately. The most notable is DNERU which was an agency created to address tuberculosis and malaria, and issue vaccines in areas of the country where access to healthcare was scarce.
Economy and major works factory in
São José dos Campos by President Kubitschek, 1959. Although his main project was to develop national industry, it was with the "Goals plan", launched in 1956, that there was a greater opening of the national economy for foreign investment. He made all imported machines and industrial equipment exempt from taxes, as well as to assist foreign capital. However, the exemption only applied if the foreign capital was associated with the national capital ("associated capital"). To amplify the internal market, he developed a generous credit policy. He promoted the development of the automobile industry, naval industry, heavy industry and the construction of hydroelectric power stations. With the exception of the hydroelectric industry, Juscelino practically created an economy without state-owned companies. He also had a very progressive agenda proposed for Education; however, that was never carried out. Kubitschek cared a great deal about the construction of transregional roads. He was criticised for focusing only in road construction and putting aside the railways, a decision still controversial today. The construction of the roads helped the integration of the Amazon region, together with the construction of Brasília. In the short term the economy boomed, with a stronger industry under his leadership. More dependent on energy resources, Brazil became one of the countries most affected by the oil crises of 1973 and 1979. Having to import over 80% of its consumption, the quadrupling of oil prices greatly contributed to Brazil's debts and spiralling inflation, for which his administration was directly blamed by the critics as a result. In fact, the economy continued to suffer well into the 1980s as Brazil's industries became less and less competitive in the global market. By the end of his term, the foreign debt had grown from 87 million
dollars to 297 million dollars.
Inflation and
wealth inequality had grown larger, with rural-zone strikes that spread to the urban areas. However, the minimum wage from that time is still considered the highest at any moment in
Brazilian history. He also initially sought a loan from
International Monetary Fund, but backed out of the negotiations. The work, led by urban planner
Lúcio Costa, architect
Oscar Niemeyer and landscape designer
Roberto Burle Marx, started in February 1957. More than 200 machines were put to work and 30,000 workers came from every part of the country, though most from the
northeast. The construction went on day and night to meet the objective of finishing Brasília by 21 April 1960, in a homage to the
Inconfidência Mineira and
Rome's founding. A completely new capital city, its streets, government palaces, infrastructure, living facilities, etc., suddenly emerged in the middle of a savanna in just 41 months, and before the target date. As soon as it was inaugurated, Brasília was considered a masterpiece of
urbanism and
modern architecture. Brasília plays a strategic role in integrating Brazil's farthest regions, bringing development to unpopulated areas and guaranteeing Brazil's cultural and territorial unity. The
construction of Brasília fostered the development of many roads, linking Brazil's vast territories. One important example was the construction of the
Belém–Brasília Highway. Previously, the only way to go from
Rio or
São Paulo to
Belém was via ship on the
Atlantic Ocean. During the
Second World War, this weak link had been blocked by German
U-boats, virtually disrupting all commerce. The new capital was soon to help integrate all the Brazilian regions, create jobs and absorb a workforce from the
Brazilian Northeast, and to stimulate the economy of the
Central-west and
North. During the construction of Brasília, in the haste to finish the job, accidents were frequent, something Kubitschek's government did its utmost to cover up.
Allegations of corruption Kubitschek's government was often accused of corruption. The accusations began at the time he was governor and intensified during his presidency, when the construction of Brasília began. There were serious reasons to believe that people connected to Juscelino had been favored in the construction. Also, the airline
Pan-Air Brazil held a monopoly on the transport of people and goods during this period, yet another source of controversy. In fact, upon his death many years later, it was shown he had earned very modest means. This did not stop a candidate for the next presidency,
Jânio Quadros, from stating during his presidential campaign that he would "sweep the corruption out of the country". Later, during the military regime, Juscelino would be questioned about the corruption allegations and about his supposed ties with communist groups. Kubitschek was succeeded by
Jânio Quadros in 1961. ==Return to Brazil and death==