History of South America

Goals plan

Goal Plan was a program whose purpose was to improve Brazilian infrastructure implemented during the government of Juscelino Kubitschek (1956-1960).

The project defined thirty objectives, grouped into five sectors, to be achieved:energy, transport, industry, education and food.

Basically, the intention was to stimulate the development of the light industry in Brazil.

Achievements of the Goal Plan

With the motto “fifty years in five”, Juscelino assumes the Presidency on January 31, 1956 and puts the Plan of Goals into practice.

One of the main works was the implementation of the automobile industry through tax incentives. It bet on the creation of factories that produced genuinely national vehicles, such as Vemag (Veículos e Máquinas Agrícolas S.A.).

Also, Volkswagen, Mercedes Benz, Willis Overland and General Motors factories were installed. In 1957, Volkswagen cars began to be produced entirely in the country.

In the energy sector there was the expansion of hydroelectric plants with the construction of the Paulo Afonso plants, on the São Francisco River, in 1955; and the beginning of the works of Furnas and Três Marias, in Minas Gerais.

In this field, the National Nuclear Energy Council was founded, which allowed Brazil to develop this technology only for peaceful purposes. At the end of his term, JK established the Ministry of Mines and Energy;

In order to correct regional problems, the Northeast Development Superintendence (SUDENE) was created. As the south of the country had industrialized faster than the north, the role of this government agency was to close this gap.

The foundation of Brasilia, the new capital of the country, was considered the synthesis goal of the JK government. The location on the Central Plateau, in Goiás, was strategic, as it would create a dynamic hub in the interior of the country.

To carry out this ambitious plan, however, Juscelino would have to resort to currency issues and foreign loans.

The IMF (International Monetary Fund), however, refused the loans, as it suspected that this economic policy would generate inflation, harming international creditors. Despite this, the money was obtained from European and American banks, without the guarantee of the IMF.

Origin of the Goal Plan

The Goals Plan originated from the ideas of economists from ECLAC (Economic Commission for Latin America) and BNDE (National Development Bank).

Considered the first global plan for the development of the national economy, it was the backbone of the developmental nationalism intended by Juscelino Kubitschek.

The success of the plan was possible thanks to the creation of administrative bodies directly linked to the Presidency of the Republic, such as:GEICON (Executive Group for Shipbuilding), GEIA (Executive Group for the Automobile Industry) and GEIMAPE (Executive Group for the Heavy Machinery Industry) .

Not all sectors were treated the same. Education and food received 4.3% and 3.2% of the funds allocated to the Goals Plan, while transport took 29.6%.

We have more texts for you :

  • Construction of Brasilia
  • Juscelino Kubitschek
  • Industrialization in Brazil
  • Brazilian economy

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