one way valve discusses about the Brazil coffee economy with you. The overheating coffee industry brings the advantage and disadvantage for Brazil economy and politics.
Firstly, after Brazil economy independence, the coffee economy creates a large amount export foreign currency that provides the necessary fund guarantee. During the First World War, the Brazil industry production doubles, on the year of 1923, the production has increased twice. In addition, the Brazil industry types have beyond the range of light industry, the metallurgy industry, chemistry industry, and pharmacy industry have occupied a certain proportion. Actually, the status of industry development has provided the foundation of Brazil process the industrialization.
Secondly, the infrastructure which drives by coffee economy has provided essential condition for the early industrialization of Brazil. On the year of 1852, Brazil government issued the law of encouraging railway construction. After that, the Brazilians are enthusiasm to build the railway, and form the railway line which base on the center of Sao Paulo, and connected Rio de Janeiro, Santos and Campinas these important ports and coffee industries. The transportation industry and electricity have played a leading role of later industrialization progress.
Thirdly, the coffee industry development has attracted a lot of immigrations; this is not only achieving the coffee export economy prosperity, but also promote the progress of Brazil urbanization. Besides, nearby the coffee industry zone appears a batch of cities, and also, the coffee industry gradually become an important industrial base of Brazil, and drives the urban population increases rapidly.
Though the coffee grows industry drives the development of many surrounding areas industries, but the more of this impact is vertical, rather than horizontal. Any industries concerned with the urban infrastructure, transportation and export processing industry which related with coffee export economy get a rapid development. On the contrary, there is no obvious change.