Wealth Holding in Southeastern Brazil, 1815-60

Bibliographic Data

ID2825754
AuthorsZephyr Frank (0000-0003-0691-9299, corresponding author)
Year2005
Volume85
Issue2
Pages223-257
Publication date2005-05-01
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueHispanic American Historical Review (JOURNAL)
Journal identifiersISSN: 0018-2168 • E-ISSN: 1527-1900
PublisherDuke University Press (PUBLISHER • US)
DOI10.1215/00182168-85-2-223
OpenAlexW2073202359
LanguageEN
Citations received21

Southeastern Brazil underwent a series of profound transformations over the course of the first half of the nineteenth century. Rio de Janeiro, the capital-in-exile of the Portuguese Empire, became the capital of a newly independent but also monarchical Brazil. The city was transformed by urban growth, a massive influx of African slaves, and the rise of wealthy merchants and coffee planters to the head of local society.1 Beyond the capital, other important zones in Southeastern Brazil also prospered as the result of domestic market forces and the pull of the Atlantic economy.This portrait of growth contrasts with the conventional image of Brazil as a “sleeping giant” during the first half of the nineteenth century. Most accounts of nineteenth-century Brazilian economic history begin their story of growth and transformation with the rise of São Paulo as a coffee producer, then industrial center, sometime in the latter part of the nineteenth century.2 Sometimes the province of Rio de Janeiro is singled out as the locus of growth, especially from the 1840s through the 1880s. For the rest of Brazil, scholars have reported little or no real per-capita economic growth over the nineteenth century. Nathaniel Leff’s influential account estimated per-capita income growth in Brazil from 1822 to 1913 at just 0.1 percent—largely due to the lackluster productivity of Brazil’s extensive subsistence agriculture sector. Even Southeastern Brazil, Leff calculated, experienced real growth rates in the range of only 0.2 to 0.4 percent—still quite low.3 The enormous weight of low-productivity subsistence agriculture, antiquated financial laws and credit instruments, low schooling rates, high transport costs, and declining terms of trade have all been adduced as factors retarding economic growth in Brazil during the first three-quarters of the nineteenth century.4Yet, over the past two decades, the literature has begun to portray parts of Brazil, particularly the Southeast, as much more economically dynamic during the first half of the nineteenth century.5 Inspired by this revisionist trend, my research shows that areas of Southeastern Brazil were relatively wealthy at the dawn of independence and that mean wealth grew substantially over the next four decades. In addition, I suggest that as wealth grew, wealth distributions followed varying trajectories. Rising wealth did not always mean rising inequality. Finally, I seek to reveal the sources of growth in wealth by focusing on institutions (property rights, slavery, commercial law) and markets (internal and external). Important changes in institutions and markets occurred in Brazil prior to 1860, including the end of the Atlantic slave trade, the creation of modern capital markets, and the rise of coffee exports.The analysis focuses on two distinct periods: 1815–25 and 1850–60. The first period straddles the end of Portuguese rule and the first years after Brazil won her independence in 1822. The second period, roughly two generations after independence, begins after the definitive suppression of the slave trade in 1850 and the implementation, in 1850 and 1854, of new laws in land and commerce in response to the growing crisis in slavery. This periodization allows for analysis of the role of institutional change in patterning the growth and distribution of wealth. It also allows for an examination of the power of growth to wealth were low and through the after more by the were from of of the two and from the city of Rio de Janeiro, the of São and São in and a more from the city of São I to the two in as São I to only of I Rio de Janeiro to only to the and not the I to of wealth in In I out of in the for the two The São out of two In São to the of for the period, I was to In I a of for the were for São and Rio de Janeiro in to the the wealth of the and that of wealth have to wealth in Brazil and has been and is as much to and as is due to of of rates, and the literature on Brazil in with to the of to wealth and change over at the in is to to and The in not on a and years in to a of and a of the in a the is and the of wealth wealth to have an account for and the of to wealth and distribution over In 1815–25 with to that the of the not and that the of of not factors relatively then with of wealth over to that is a for the to 1860, Brazil did not of did a but of Portuguese and a massive of African to the did not change in of the were no institutional changes that have wealth in more or and is to that were in The that the not change over the is also to at wealth was not to a for to out of the over I of and that and for and other of wealth at all of to of all wealth. only this In Southeastern Brazil, of all and the in the a of the and the of wealth is to the mean of slave in the two In the city of Rio de Janeiro, for of and on In the for the slave was this on the in and wealth of The for and from for São by de also to the distribution of the and to that distribution with slave a mean of slaves, to the an of the as but not the mean of the by the mean in the to a to for in wealth wealth and slave wealth not of wealth to the the and the is to to of in the São the of I all for São for factors the including and the of for in the In the were This relatively the the and the is to in the with the The also and with the of roughly as in the The important in to the of I the to and the of wealth on the is to that for mean wealth by the to wealth by to a in not to at with the of at in the of São The on and wealth a analysis of for I from Rio de Janeiro in the of a of the wealth on the and The of of in the by their weight in the in a in mean wealth after This is on a of from a period of as a to with the reported for São of the the to the to the of wealth by to for the and other of the to over with as with the of the in terms of and Finally, to of to and the of the distribution of wealth on and the the wealth that was to the of at the of reported for and other sources of to suggest that the on the or of to of the in the that wealth but no the of wealth the to as a of the of wealth the is in In the of São I the urban for to this of with were by and and were In the of Rio de Janeiro, I the of the urban for the was at and the at in Brazil’s It is on and that more half of all at wealth the a or a in all of the in this as of the not to a the and for as a of is the nineteenth-century as and wealth in for of all wealth in the the other of economic that were This not mean that or by wealth in from It that the of as the of for more were wealth only as the in as this the of the and of the at the a more distribution of wealth wealth to real wealth grew in Rio de Janeiro and São São at a and São Paulo shows an of growth, this to the of the and low of mean wealth for the of mean wealth for Rio de Janeiro and São and two for the São Paulo is in the of growth, on the all of the to rates in of I wealth over that and and out over the of a of the of and is to that at not Finally, is that and were in a of to the the that in period this with at this and and real wealth to growth in wealth by a of and the I the of real mean the is also to the wealth by in as reported in This has as as the the of or not the in and and the of reported by for Rio de Janeiro is much other her This a on the of growth for Brazil’s capital and with São for in São including a range of and a for this is to that the and wealth for São the of the the to account for was a high of in Brazil over the period in In the the an and the the for real wealth in Southeastern to the in a by all the of It to change the of growth with the Even more to the the of this over the two periods: in period and in period for Rio de and and in São The of did by this change over the period in have the of of that the in their of the and of the over by only of all in the mean of their and of growth over is also to the This in that the of an the and in the of the of and in just half of the The of the of and the of their mean wealth with that of the to that over the to the reported in to wealth the rule of the wealth head mean wealth from and the in the by mean then by the estimated For São I suggest a of and for The for Rio the that of Brazil’s capital their and the of or no wealth have been mean wealth head the of Rio de Janeiro was I have that of no wealth of that the is two to and with from a of for wealth in this the wealth of was estimated at on of the wealth was and I not to a of this to the of have to no wealth of mean wealth head to in Rio de Janeiro São as at the of the the for São Paulo a high of wealth all in wealth over the first four of the rates of growth In other parts of Southeastern Brazil by the rise of and trade, and especially by the of the coffee the is of the of in São growth in wealth over roughly the is the a rise in mean wealth from in to for was the in São this growth was by the Southeast, for capital of the important of as rates of growth in other parts of Brazil were much to my the mean of an in for in Rio de Janeiro and I have not been to is to that the of wealth in Rio was to that in I that roughly in two on the of Brazilian independence with It is important to that Rio de Janeiro growth through the did that the mean of an for at as wealth in was wealth in the of the in São the in Rio and half as much by the The low of wealth in São Paulo is the for this period is to in the the to a São Paulo on São rates of growth in the Rio de Janeiro of by the the and of the were the of wealth in for change in during this not is the of wealth during this period in from the rise in trade with the transport and This transformation have the with the first in during the have for rates of economic growth and for Rising an of Leff the of the has that the nineteenth-century Atlantic transformations in in and in due to trade and In to in as the of their much more other of changes have also of wealth and to The institutional with institutions as of economic and changes Brazilian independence have wealth after The power and of the Brazilian during the and in a by an power the for a series of important changes in Brazil’s and economic to the suppression of the Atlantic slave trade in 1850 by institutions in of and a commercial that the of of institutional changes were in Rio de the first of the new just were on the the of the first of and were in The capital of all 1850 and to to the was a the suppression of the slave trade and the rise of more financial markets, as capital of the of the Brazilian in the and an market for of roughly at the end of the first period the at by 1860, this to of this of and is in the of wealth in the to the first was economic growth with the of markets, and credit a scholars have of growth, this has the of in the In a series of a series of revisionist the and of economic growth in Southeastern Brazil. in that the first half of the nineteenth the rise of a in Rio de Janeiro for with an that in of a that is that the rise of a local and the of the domestic market to economic growth over the first half of the nineteenth research trade and the of Brazil as a series of a of subsistence that trade with other the part of the commerce by merchants in This that the of the is important in the for domestic markets or their and in as São that to the as to In the of the especially coffee was of growth is to rates of wealth much of the story has on the of Brazil’s is the of the growth that of my is that parts of Southeastern Brazil for economic growth and wealth in the first half of the nineteenth to or in I this in on the and for domestic economic growth in the and and de the of this in of the from the to the nineteenth and of two the of as the of income and the of from and for to In markets the through to at the and to wealth through and and productivity Southeastern Brazil in from de institutions and were and institutions and capital the power of the to productivity at in the nineteenth was to is that wealth grew in the of the Southeast, as São as of the that and as for São Paulo as was of the important markets for through the of Rio de Janeiro the a and growing of of slave over The sources of this growth in a local and that to the of the and the Atlantic the of the and the economic of with de on the and of credit begin to the of this in a much more dynamic for a by and in were with that and This the of and the of market and to Rio de Janeiro, of and of in was by for São Paulo during roughly the economic growth was not to the of local and also the of and to the of that credit a of for the of São over the first half of the nineteenth century. For the of four São credit during the a of in out to for a mean of that this credit was to the São the credit was on the of from were in this the of credit was research the of market and credit in São as in the and of in this part of the rates of growth for of this Even rates on a per-capita to account for the of growth the the growth in and at the of credit by in São of the credit were two of The first and important in terms of was credit for de de and on to my the mean of credit by the credit was second of was in of credit and as credit at The in of credit was much the mean was and on the of of this an credit of the of credit in this latter was to that by for São only two the that for São have the of credit in the dynamic zones of the credit out the the São credit market also a second of local In the of the of São I a of local and with more in the and of the from the and The of credit by in the and of São was much that of credit with a mean of local a of in at the of their The of local and from that of the credit credit to a relatively of and the was with an of of for credit did at with the of the credit of São a of for much of the of credit in the as for out of in the The mean of was the by credit but much the mean for other of credit The for the was was to that of credit but on this were local In with credit in São the a of market and is that São in was a for commerce and by the growth in real wealth and economic of growth in this of during the first half of the nineteenth in their analysis of the role of credit in then credit an of credit and and growth in with financial to market and have their more and the of more of their The to credit and São São is by the of de a from a of to in the of São a to an of including an a a of and and this is but the and of credit was to all of including the I was to of were in the of change or in transport with were in Brazil during the period and new to The rise in the of credit in not only a rising of credit but also rising a of the of subsistence and rising in the market is that the rise of urban much zones of market as in the the the of coffee and in the from the through the markets for financial in Rio de Janeiro to growing for trade, markets, and credit to growth in wealth in Southeastern Brazil. It that the growth rates in wealth estimated for Southeastern Brazil with rates reported for the over roughly the a of the of growth in real per-capita income in from the range from for the period to from the through to over the period an growth of from to the in this at that parts of Southeastern Brazil from to a of wealth growth of the in Southeastern Brazil to changes in the of wealth in all the for São Paulo is and I my on Rio de Janeiro and São with to São the distribution of wealth by with an of to the that the of wealth of and for the part of wealth in Rio de Janeiro in In the of wealth in real from the through the to and the of the coffee in the of Rio province to the wealth of the out in São was of more and the of from the of the coffee for and the of wealth in this by the I have was a and important of wealth the first half of the nineteenth in Southeastern Brazil. were wealth and were of to of wealth. their in in the of slavery, in terms of wealth was quite in of the to Rio de In São in of the with economic and was much more important as a of wealth. by the of all wealth in the in São of wealth by the In to slave wealth for of wealth in In in the Rio de Janeiro and as a of wealth and the only of wealth in the in over of their for a of the in were especially in São São as the and of the Southeast, as no that for a of wealth This by the of the economic history to this that the of São to in trade and credit to a much by were from trade and the roughly the as and the city in to trade from an São and for the local This at the growth in the of in from the rising from to of as as the of growth of reported in this with the that in the to have more on in the of the of the and more important in Brazil’s capital in In that the of their wealth in in The of in São on the other to to the of credit and I have in my of the sources of economic growth in Brazil over the first half of the nineteenth financial the of the to the of or modern and were more important in the dynamic in the was in the latter that and were by the of wealth was in or and the in São a to that the relatively in São that the market was and on and The mean of a slave was in São in Rio de Janeiro the period on their and is not that the in the to the of as in the as much as of wealth in a subsistence and slave slave credit and a and not with a story subsistence and The were the of this the of trade and in the changes in the commercial the and of grew not as as in the two of the nineteenth century. This new for especially in Rio de the of and for The rise in slave also have to a in the of the wealthy São and São did not the of to financial instruments, and for a of the wealth this change after the to the of including the of and as of In Rio de Janeiro, a of wealth was to but not in São This to in the two in this in São have a of on for and have in the the of wealth the of the with or have In this a in terms of of wealth over This I quite did wealth to the of their with and real wealth more in Rio de the wealth of Brazil’s capital a more and not to more their with wealth to their in real and out the and as much weight on this from the of wealth to that Southeastern Brazil’s wealth and on to but that Brazil’s capital the period by high of wealth inequality. The of wealth in Rio of wealth the the their to In São wealth over roughly the of from to of wealth. The for São at this to in on more São of wealth to have for the of wealth by the as the other two that wealth to the distribution wealth for little or no and the is in is not to wealth or of for the The for São from the the of the of that their This of allows to the distribution of wealth more a of the I the distribution to This has the of the from to with from to In other the weight of in the the of inequality. I then to the half of the distribution on the that the wealth of the of the distribution and that no slave This the to and in of and in the Finally, in to the of slavery, I at the of the distribution to of the to the of as of The result of all of is a of and an of on the of this the is to the for and other of the to the is no that this in other and in Brazil. The is a range of that a of all wealth. For that half of the of the with of inequality. The of the São rise from that of wealth. the that of no wealth is not particularly of wealth the in São In and Rio de Janeiro, the that of were is of a this were the in the rise to in the as the estimated for in and in over and by the of on economic wealth in over the first half of the nineteenth century. became more at the distribution of more wealth other of wealth. of that wealth in was more wealth in prior to the For the from to in and The for was from to in the is a with the that slave wealth was more the was more to three-quarters of no at the of the distribution the for real the story on the In the especially in that at of of real real was and the for the two of wealth were the is the of Rio de Janeiro other The of that was to the that real of all in urban were more other of wealth. In the distribution of by was and low to the of in wealth in and slave wealth became more over of the in Brazil’s capital the scholars have that the of but a and that as economic of the as a and an and of on in the part of Brazil mean of accounts of Brazil’s to on the of is is no to the of to at of to the of on wealth to the is to the with and slave wealth. from the the from to in period and from to in period for Rio de This a in in the first period and a in the in the of but not by of wealth. In São a of wealth in slave wealth from the the from to in period and to in period This a in and a It is important to over the have been to more of their and the wealth distribution and slave wealth was relatively wealth other of as financial and were The of wealth in Rio de Janeiro of and of slave wealth and of wealth. In the the of and but just of slave and of wealth. and became more but more in the of the São a slave and wealth were more other of and were in during the by the the of wealth in from the of the in was more the of the of slave wealth in and in of São from that of Rio de only was a much more important but over the period in terms of wealth. of this rise half of to in the distribution of slaves, as the of slave wealth The to other of in São on in Rio de Janeiro as a result of the transformation from a relatively and a more dynamic financial and It is especially that this analysis growing in Brazil’s and financial wealth were of in Rio de Janeiro was this economic growth to have to inequality. The factors that São to at a real in of the rise in inequality. and the and The from the of slave the rise in their especially the institutional of 1850 and the suppression of the Atlantic slave The their on the of of to to markets and In other markets and capital and wealth grew in parts of Southeastern Brazil and the rates of growth were in the coffee zones and the of wealth were in the capital, Rio de Janeiro, Brazil’s was prior to independence, especially in the I have estimated not Brazil as particularly more is to that in Brazil’s capital in the first In São grew from the through the as the and rising slave out of the The of and financial the local also is to suggest a of wealth in to economic and institutional in Southeastern Brazil. with markets of wealth and São in the São in the and São Paulo in the with dynamic and extensive financial or of wealth and Rio de Janeiro in and São and São Paulo by the Finally, in areas the coffee was to Rio de Janeiro and São wealth grew at a in the latter of on the from the much more important to and wealth their wealthy at as by the of in a of wealth that is relatively and is important in the and range is a of wealth that is not to change wealth or to a much of their wealth in did their wealthy in Rio de Janeiro and São The in the is with in the second is that and slave were the the of in have the of the in Brazil. is that Brazil’s was and that was more important to and wealth the of wealth inequality. The of in Brazil during this period is that and a of as has were to the of Brazilian in the of economic institutional and during the first half of the nineteenth for this was by from of and the to the of of my research in Rio de Janeiro, and São and I was by and I to de the and for their on of this and my

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