In order to strengthen industries, a system of tax incentives was introduced starting in 1963, according to which half of corporate income taxes can be deposited in banks to finance public utility projects, as has already been the case to the South of Recife and to the W of Salvador (Arata area).
In 1975 the second development plan began, which concerns various branches of the Brazilian economy: search for oil fields on the continental shelf (in 1971 the territorial waters were extended to 200 miles), development of the road network, exploitation of new iron (Carajas) and bauxite (Amazonia) mines. For the future, Brazil also intends to create a merchant fleet capable of exporting Brazilian products (it now owns only 469 ships with a gross tonnage of 2.1 million tons); to spread mechanization in the agricultural field, to improve cattle breeding.
Agriculture and farming. – The agricultural sector, although damaged more than industry by inflation, retains its importance, as shown by the fact that 44% of the active population is employed in agriculture (1970).
According to Toppharmacyschools, the arable land and arborescent crops (such as coffee) extend over 3.5% of the territory, meadows and pastures on 12.6%, woods on 60.8%, while the rest is uncultivated or unproductive. In December 1964 there was an attempt at agrarian reform with the approval of a “land statute”, which envisages giving technical assistance to producers, credits for improvements, guarantees to obtain remunerative prices, encouragement to become owners of public land and threatens to expropriate those owners who do not care to cultivate the land. As significant imbalances continued to exist (47% of the land belongs to owners of more than 1000 ha), in July 1970 the National Institute of Colonization and Agrarian Reform (INCRA) which has prepared both a national and regional plan to enhance crops and especially that of wheat, whose production is insufficient, which (with corn) is the basis of the Brazilian people’s diet. Among the irrigation projects, that of the Corrente river (Bahia) was carried out, which covers an area of 215,000 ha.
Coffee cultivation has been developing more and more in the northern and western parts of the state of Paraná (which now provides 58% of the production, compared to 28% in the state of São Paulo and 6% in Minas Gerais), since the plant suffers less from cold waves; furthermore, the rodovia do café, built around 1960 in Paraná, facilitates sales to Curitiba and the port of Paranaguá.
Cattle breeding, which is practiced in a different way, with a prevalence of extensive forms, has exceeded 100 million head. It has been taking on considerable importance especially in central-western Brazil, favored by the new road arteries that connect the farming areas to the meat consumption centers of the Atlantic coast. Fishing has not undergone significant changes (527,000 t in 1974) and remains modest, with the possibility of development given the presence of 7400 km of sea coasts.
Mines and energy sources. – Iron mines have become increasingly important, located for the most part in the iron quadrilateral (Itabira area in Minas Gerais); the mineral is found in a belt 100 km long and 75 wide in hematite pockets (now compact, now powdery) and is mined in the open. The export (35,400,000 tons of iron in 1973) was facilitated following the opening of the port of Tubarão near Vitoria (440 km from the mines). For the exploitation of the Aguas Claras field, near Belo Horizonte, a railway was built which leads to the new port of Sepetiba near Rio. Furthermore, the exploitation of the Serra dos Carajás field in the Amazon is about to be started. For manganese, the Macapá deposits in the Amapá (Serra do Navio). For nickel in 1974 the extraction of the Niquêlandia (Goiás) deposit was started. New uranium deposits have been found in Poços de Caldas (associated with bauxite) and Serra da Moeda (in Minas Gerais). Oil production is on the rise (1974: 8,267,000 t), following the discovery of new wells in the state of Alagoas (1966). In May 1966 the oil pipeline connecting Rio de Janeiro to Belo Horizonte (365 km) was inaugurated and in April 1969 the one (120 km) between the Cubatao refinery and São Sebastião near Santos. Furthermore, in 1973 the Paulinìa refinery in Planalto Paulista came into operation. New uranium deposits have been found in Poços de Caldas (associated with bauxite) and Serra da Moeda (in Minas Gerais). Oil production is on the rise (1974: 8,267,000 t), following the discovery of new wells in the state of Alagoas (1966). In May 1966 the oil pipeline connecting Rio de Janeiro to Belo Horizonte (365 km) was inaugurated and in April 1969 the one (120 km) between the Cubatao refinery and São Sebastião near Santos. Furthermore, in 1973 the Paulinìa refinery in Planalto Paulista came into operation. New uranium deposits have been found in Poços de Caldas (associated with bauxite) and Serra da Moeda (in Minas Gerais). Oil production is on the rise (1974: 8,267,000 t), following the discovery of new wells in the state of Alagoas (1966). In May 1966 the oil pipeline connecting Rio de Janeiro to Belo Horizonte (365 km) was inaugurated and in April 1969 the one (120 km) between the Cubatao refinery and São Sebastião near Santos. Furthermore, in 1973 the Paulinìa refinery in Planalto Paulista came into operation. April 1969 the one (120 km) between the Cubatao refinery and São Sebastião near Santos. Furthermore, in 1973 the Paulinìa refinery in Planalto Paulista came into operation. April 1969 the one (120 km) between the Cubatao refinery and São Sebastião near Santos. Furthermore, in 1973 the Paulinìa refinery in Planalto Paulista came into operation.
The energy sources have benefited from the commissioning of a whole series of hydroelectric plants. Among the largest we should mention those of Urubupungà sul Paraná (partly due to an Italian company: Imprigilo) with the power plants of Jupiá and Solteira island (completed in 1973-74), of Fumas (May 1965), of Estreito sul Rio Grande (July 1970), by Xavantes on Parapanema (January 1971). The existing facilities of Paulo Afonso and Sobradinho on San Francisco were also enlarged. Overall, the installed water capacity is 13,490,000 kW and the production of 47 billion kWh. A nuclear power plant is under construction in Angre near Rio.
Industry. – Significant progress has been made in this area, often by resorting to foreign capital and using funds provided by the state. In textiles, alongside natural fibers, the artificial and synthetic fiber industry has developed. Among the food industries, scattered throughout the country, the sugar refinery and the frozen and refrigerated meat industry are progressing. In the chemical field, favorable conditions exist for the rubber industry (both natural and synthetic) and above all for the petrochemical industry, concentrated in large complexes; the Capuava plant, inaugurated in June 1972 in the state of San Paolo, near an oil refinery, is among the largest in the world, producing plastics (polyethylene and polystyrene), synthetic textiles, insecticides, etc. of smaller dimensions are the plants of Guaíba (Rio Grande do Sul) and Aratú (Bahia). The paper industry is also progressing (in 1971 a paper mill was opened in Goiana, Pernambuco), cement (new plant in Irajá in the State of Rio de Janeiro), glass, pharmaceutical products, electrical equipment, aluminum (1970: new plant in Poços de Calda), cars (now built in Brazil, especially in São Bernardo do Campo near San Paolo), tractors (partly exported to other South American states). Industrial products are now in first place in terms of export value (28.2% in 1972), followed by coffee (23.4%), sugar (7.2%), cotton (6.7%), mineral iron (5.7%). The main buyers are the MEC states (28%), the United States (22.5%) and Japan (4.4%).
