The Real Plan and the Brazilian agriculture: perspectives

Vol. 19 No. 4 (1999)

Oct-Dec / 1999
Published October 1, 1999
PDF-Portuguese (Português (Brasil))
PDF-Portuguese (Português (Brasil))

How to Cite

Melo, Fernando Homem de. 1999. “The Real Plan and the Brazilian Agriculture: Perspectives”. Brazilian Journal of Political Economy 19 (4):718-28.

The Real Plan and the Brazilian agriculture: perspectives

Fernando Homem de Melo
Professor titular do Departamento de Economia da Faculdade de Economia e Administração da Universidade de São Paulo (FEA-USP) e Pesquisador da Fundação Instituto de Pesquisas Econômicas (FIPE), São Paulo/SP, Brasil.
Brazilian Journal of Political Economy, Vol. 19 No. 4 (1999), Oct-Dec / 1999, Pages 718-728


This paper reviews the effects of Plano Real’s macroeconomic policies on agriculture
and discusses the new perspectives open after the strong devaluation of our currency in
January 1999. Brazilian agriculture was severely affected by the combination of high interest
rates – overvalued exchange rate. In addition, it has had to face the problems of excessive
reduction in import tariffs, of financed imports and of low economic growth rates in recent
years. Some favorable changes in international trade offset, at least partially, the problem of
currency overvaluation. Brazil has always been recognized as having a strong comparative
advantage in agriculture. The devaluation which occurred, beginning in January 1999, opens
better perspectives for the country to exploit its competitiveness in international markets.

JEL Classification: Q14; Q17; E42.

Keywords: Real Plan stabilization programs agriculture economic growth