- In full:
- Itamar Augusto Cautiero Franco
- Born:
- June 28, 1930, at sea
- Died:
- July 2, 2011, São Paulo, Brazil (aged 81)
- Title / Office:
- ambassador (2004-2005), Brazil
- ambassador (1995-1996), Brazil
- president (1992-1995), Brazil
- Political Affiliation:
- Party of the Brazilian Democratic Movement
Itamar Franco
-
Who was Itamar Franco?
Itamar Franco (1930–2011) was a Brazilian politician who served as president of Brazil from 1992 to 1995. Born at sea, he grew up in Juiz de Fora and later became the city's mayor. In the mid-1960s, Franco co-founded the Brazilian Democratic Movement, the only opposition party during military rule, and in 1974, he was elected to the Federal Senate.
In 1990, he was Fernando Collor de Mello's vice-presidential running mate. After Collor's resignation due to corruption charges, Franco became acting president in October 1992 and president in December 1992, and he was known as a down-to-earth and honest leader. During his presidency, Brazil faced soaring inflation and a spreading corruption scandal. In 1994, Fernando Henrique Cardoso, his finance minister, won the presidential election, and Franco stepped down at the end of his term on January 1, 1995.
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When did Itamar Franco become president of Brazil?
Itamar Franco became acting president of Brazil on October 2, 1992, following the resignation of Fernando Collor de Mello amidst corruption charges. The National Congress impeached Collor in December, and Franco was officially sworn in as president on December 29, 1992. His tenure concluded on January 1, 1995, when he stepped down at the end of his term.
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Why did Itamar Franco become president instead of being elected directly?
Itamar Franco became president of Brazil in 1992 not through direct election, but due to the resignation and subsequent impeachment of President Fernando Collor de Mello. Collor faced severe corruption charges, leading to a political crisis. As vice president, Franco assumed the role of acting president in October 1992 when the House of Representatives voted to suspend and impeach Collor. Collor resigned in December, just as the Senate opened his impeachment trial, and Franco was then sworn in as president on December 29, marking the first time the country resolved a major political crisis without military intervention.
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What were some important events during Itamar Franco’s presidency?
Itamar Franco assumed the presidency of Brazil in December 1992 after Fernando Collor de Mello resigned amidst a corruption scandal. Franco's image as an honest and down-to-earth man contrasted with his predecessor.
Challenges Faced
Franco's administration faced serious challenges, including soaring inflation rates that reached 6,000 percent, and a spreading corruption scandal. Industrial production declined, and the incomes of Brazilians decreased.
Actions Taken
Franco offered to resign in October 1993 if the National Congress would schedule early elections, but his offer was declined. In a plebiscite, Brazilians rejected proposals to reorganize Brazil’s political system. In 1994, Brazil adopted six constitutional amendments, reducing the presidential term from five to four years. At the end of his term, on January 1, 1995, Franco stepped down.
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How did Itamar Franco help improve Brazil’s economy?
As president of Brazil from 1992 to 1995, Itamar Franco appointed Fernando Henrique Cardoso as finance minister. Cardoso then introduced the Real Plan, a financial program partly inspired by an Argentinian plan, which successfully curbed Brazil's hyperinflation without limiting economic growth.
The Real Plan included the following:
- Stopped the indexing of inflation
- Introduced the real currency
- Linked the exchange rate partially to the U.S. dollar
- Curtailed government spending
The annual inflation rate decreased dramatically from nearly 1,000 percent in 1994 to less than 20 percent within a year and almost zero by 1998.
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What is the lasting impact of Itamar Franco’s presidency on Brazil?
Itamar Franco's presidency (1992–1995) followed a period of political and economic instability in Brazil. Franco assumed office after President Collor de Mello's resignation due to a corruption scandal.
A key achievement of Franco's administration was the implementation of the Real Plan, spearheaded by his finance minister, Fernando Henrique Cardoso. This financial program curbed hyperinflation by stopping the indexing of inflation, introducing a new currency (the real), and calling for curbs on government spending. The Real Plan's success paved the way for Cardoso's election as president in 1994, marking a shift towards economic modernization and stability.
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Itamar Franco (born June 28, 1930, at sea—died July 2, 2011, São Paulo, Brazil) was a Brazilian politician who served as president of Brazil (1992–95).
Franco was born on a ship off the eastern coast of Brazil, sailing from Rio de Janeiro to Salvador. His father died shortly after his birth, and his mother worked as a seamstress. He grew up in the city of Juiz de Fora, in southeastern Minas Gerais state. After attending the School of Engineering of the Federal University of Juiz de Fora, he served as mayor of the city (1966–74).
In the mid-1960s Franco was a founding member of the Brazilian Democratic Movement (now the Party of the Brazilian Democratic Movement [Partido do Movimento Democrático Brasiliero; PMDB]), which was the only opposition party permitted under military rule. In 1974 Franco was elected to the Federal Senate as a representative of the PMDB. He was a senator for 16 years, leading committees on economy and finance (1983–84) and investigating corruption (in the late 1980s). He lost a bid to be governor of Minas Gerais state in 1986.
Franco was picked by Fernando Collor de Mello to be his vice presidential running mate in the 1990 presidential election. Representing the newly organized centrist National Reconstruction Party (Partido da Reconstrução Nacional [PRN]; later renamed the Christian Labour Party [Partido Trabalhista Cristão; PTC]), Collor and Franco won the election. Amid charges of corruption and unable to move reforms through the legislature, Collor resigned in September 1992. Vice President Franco thus became acting president on October 2. The National Congress voted for Collor’s impeachment in December, and Franco was sworn in as president on December 29.
Franco’s image as a quiet, down-to-earth, honest man familiar with the workings of Brazilian politics contrasted sharply with that of his flashier predecessor. Franco was considered an unusual president. He was a private man who disliked public attention and criticism. In his first year in office he held only one scheduled news conference, and cabinet meetings occurred about once every three months. He did not attend official dinners of Latin American heads of state. When a Rio newspaper proclaimed him “a president with a vice president’s agenda,” he stopped making his schedules public. He spoke only Portuguese and was an economic nationalist opposed to neoliberal market reforms. This put him at odds with the International Monetary Fund (IMF), among other agencies, and it was six months before he received the U.S. ambassador, though the United States was Brazil’s leading foreign investor and trading partner at the time. Brazil’s most widely read columnist summed up, “Itamar Franco would be a good city councilman in Juiz de Fora with his office in the corner barbershop.”
Meanwhile, Franco’s administration was confronted with serious problems: inflation soared to 6,000 percent, and the corruption scandal that had plagued Collor spread to the legislative branch. Franco, who appeared temperamental and indecisive, proved unable to find solutions. His 14.5 percent approval rating was one of the worst recorded for a Brazilian president. On October 18, 1993, Franco offered to resign if the National Congress would schedule early elections (set for November 1994), but his offer was declined. The right feared that early elections would mean victory for the popular Workers’ Party (Partido dos Trabalhadores; PT), while the left wanted to milk the ongoing corruption scandal. Business interests sought to avoid postponement of a debate concerning reform of the 1988 constitution. Franco thus remained in office through the 1994 presidential election, which was won by Fernando Henrique Cardoso, who had been Franco’s finance minister from May 1993. Franco stepped down at the end of his term, on January 1, 1995.
Franco was named ambassador to Portugal (1995–96) and then served in Washington, D.C., as a Brazilian representative in the Organization of American States (1996–98). In 1998 he was elected to a four-year term as governor of Minas Gerais state on the PMDB’s ticket. As governor, Franco did not cooperate with Cardoso’s plans for nationwide economic growth; he declared a moratorium on state debt payments and opposed privatization in his state. Franco left the PMDB in December 1999 when he could not get enough backing to split from Cardoso’s alliance. From 2004 to 2005 Franco served as the ambassador of Brazil in Italy. Later he was chairman of the board of the Development Bank of Minas Gerais state.
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