Ancient history

Castelo Branco government

Humberto Castello Branco was the first president of the dictatorship period and, in his government, he implemented an economic policy of austerity and imposed political repression.

The Marshal Humberto Castello Branco was the first president of the historical period of Brazil known as Military Dictatorship (or Military Regime). Castello Branco assumed power a few days after the 1964 coup, which ousted João Goulart, and remained in office until 1967, when he was succeeded by Artur Costa e Silva. During the government of Castello Branco, the entire structure of repression that gave rise to the period known as the “lead years” was implemented.

Also :First phase of Jango government and Second phase of Jango government


Investiture of Castello Branco and establishment of repression

Humberto Castello Branco assumed the presidency of Brazil on April 15, 1964 and replaced the country's provisional president, Ranieri Mazzilli. Castello Branco's inauguration consolidated the junta – the group that had organized the coup against Jango – in power. Castello Branco was chosen after an indirect election in which Juarez Távora and Eurico Gaspar Dutra were defeated.

When Castello Branco assumed the presidency, Brazil was already under the effect of Institutional Act nº 1 (AI-1). The AI-1 was enacted on April 9, 1964, and, through it, the supreme command (organizing group of the 1964 coup) imposed measures that began to shape the repressive apparatus of the Military Dictatorship. For this to be possible, AI-1 created a legal support that allowed the persecution and imprisonment of those considered opponents of the regime. In addition, AI-1 also aimed to create a justification for João Goulart's deposition.

As ​​of AI-1, persecutions and arrests of all those who were seen as enemies by the supreme command began. As a result, home invasions began to happen indiscriminately, and stadiums and Navy ships began to be used as prisons. During this period, the first cases of torture carried out by government agents began to be recorded.

With the AI-1, purges were carried out in both civilian and military environments. As a result, thousands of people were removed from their jobs. Historian Boris Fausto estimates, in modest numbers, that about 1400 people lost their positions in the civil bureaucracy and about 1200 in the Armed Forces|1| .

In addition, the persecutions also reached political circles and resulted in the impeachment of dozens of politicians. In the Chamber of Deputies alone, 41 deputies had their political rights revoked. Altogether, most of those who lost their rights were linked to the Brazilian Labor Party (PTB). Governors who did not support the coup (such as Mauro Borges, from Goiás) were removed from office.

Understand also :Fourth Brazilian Republic

The persecutions also extended to social movements. The National Union of Students (UNE) was harshly repressed, its headquarters were set on fire, and the institution was made illegal. The Peasant Leagues, which worked in the countryside in defense of agrarian reform, also suffered from repression and were soon made illegal.

Another repressive apparatus was the use of Military Police Investigations (MPIs). The IPMs were mechanisms of repression and investigation used to fight all those that the dictatorship saw as “subversive”. The use of IPMs as a form of repression is evident, as, in the first weeks after the coup alone, more than 700 IPMs were created and more than 10,000 people became defendants in these inquiries|2| .

The establishment of all this repressive apparatus by the military dictatorship aimed to carry out a great purge in society, especially in Brazilian politics. The primary purposes of repression were to end the left and center-left elite, which acted in Brazilian politics and made an ardent defense of reforms in Brazilian society, and to persecute social movements until they were dismantled| 3| .


AI-2 and AI-3

In addition to everything that has already been mentioned, the transformations in Brazilian society triggered by repression continued to happen through two new measures taken during the Castello Branco government:the AI-2 and the AI-3. These two institutional acts resulted in the hardening of the regime in the country.

The Institutional Act #2 was decreed at the end of 1965 and determined that the choice of the country's presidents would happen by indirect elections , in addition, it created prerogatives that would result in the strengthening of the Executive to the detriment of the other powers. The AI-2 decree made conservative figures in Brazilian politics, such as Carlos Lacerda and Ademar de Barros, break with the dictatorship.

Carlos Lacerda's breakup led to the emergence of Frente Ampla, an opposition political group that articulated the return of democracy to the country, especially so that direct presidential elections could take place. The Frente Ampla had the support of João Goulart and JK and, at the beginning of 1968, it was made illegal by the dictatorship.

The Institutional Act nº 3 established bipartisanship in Brazil, with the ruling party called the National Renewal Alliance (ARENA), and the consenting opposition party called the Brazilian Democratic Movement ( MDB). The AI-3 also extended the holding of indirect elections to governors and mayors.

Another important event of Castello Branco's government was the granting of a new Constitution to the country, in 1967. Humberto Castello Branco's government, as mentioned, lasted until 1967 and was replaced by the government of Artur Costa e Silva, that consolidated what became known as the “years of lead”.


Economic policy:PAEG

The economic policy of the Castello Branco government is characterized by historians as a policy of austerity . The main objectives of this government were the control of inflation and public indebtedness. In order to achieve this, the Government Economic Action Plan (PAEG).

The reduction of public indebtedness was carried out by controlling government spending. One of the first measures taken by the government, in this sense, was the implementation of a policy to control salary adjustments. This government measure originated a calculation that established that the salary adjustment would be determined according to the average inflation of previous years. In general, this represented a loss of purchasing power of the worker's salary.

In addition, a law was established that regulated the conduct of labor strikes. With this law, a series of very strict conditions was created for strikes to be authorized. In practice, the law made it practically impossible to carry out strikes in the country. In economic and labor matters, the creation of the Severance Indemnity Fund (FGTS) was determined, which facilitated the dismissal of employees.

Before the FGTS, the Brazilian labor system followed the determinations of the Consolidation of Labor Laws (CLT), which stated that the worker dismissed, unjustifiably, would be entitled to compensation corresponding to a month of salary per year worked and determined that workers with more than ten years in a company would be entitled to stability.

FGTS ended the old laws and stipulated that companies should deposit 8% of the worker's salary in the form of tax, and the worker could only withdraw the amount in case of unfair dismissal concerned or in case of purchase of own house. This law was enacted by President Castello Branco, using his prerogatives of power given by AI-2.

This austerity policy implemented by the Castello Branco government achieved the objectives intended by the government:inflation began to fall from 1965 onwards. However, the PAEG is seen by historians as a plan of the government created to meet the interests of Brazil's large business community, as it made conditions for a salary increase difficult and facilitated the dismissal of workers. This economic plan by Castello Branco paved the way for the “Economic Miracle ”.

|1| FAUST, Boris. History of Brazil. São Paulo:Edusp, 2013, p. 399.
|2| SCHWARCZ, Lilia Moritz and STARLING, Heloisa Murgel. Brazil:a biography. São Paulo:Companhia das Letras, 2015, p. 457.
|3| NAPOLITAN, Marcos. 1964:History of the Brazilian Military Regime. São Paulo:Context, 2016, p. 70-71.

*Image credits:FGV/CPDOC