Why did the Brazilian government encourage manufacturing during the 20th century?

During the 20th century, the Brazilian government actively encouraged manufacturing to diversify the nation's production and reduce its heavy dependency on agricultural exports, which had historically left the economy vulnerable to volatile international market prices.1

Following the Great Depression of the 1930s, the government adopted nationalistic policies aimed at ensuring domestic control over key industries. This shift was part of a broader regional move toward import substitution industrialization (ISI), a strategy championed by economists like Raúl Prebisch to foster greater economic autonomy and protect developing nations from the perceived imbalances of global trade.12

To achieve these goals, the government implemented several measures:
* Direct Intervention: The state took ownership of major companies and established key sectors, such as the petrochemical industry through Petrobrás.12
* Economic Incentives: Authorities utilized protective tariffs, import restrictions, subsidies, and direct investments to support industrial growth.12
* Infrastructure and Development: The government fostered industries ranging from shipbuilding and motor vehicles to personal computer manufacturing and aerospace.1