Article Tag Archives: State of Rio Grande do Sul

The perception of immigration in the State of Rio Grande do Sul: three historical moments

The issue of immigration, for reasons that range from structural problems such as population aging and low growth to the displacement of refugees, appears in current debates very often. In Brazil and particularly in the State of Rio Grande do Sul, the matter goes from the recognition of its convenience and necessity to outright expressions of rejection and, sometimes, clear xenophobia. Aiming to avoid the immediateness of certain analyses, this article intends to set a short historical overview on the perceptions of the media of immigration in Rio Grande do Sul in three historical moments. In the first one, in the 19th century, the negative stance on German immigrants is called to focus. In the second one, in the mid-20th century, in the post-World War II period, the feeling that Brazil was losing the “competition” to attract workforce released in Europe is highlighted. Finally, nowadays, a discussion about future demographic perspectives, workforce and racial issues is noteworthy. This analysis is very useful to show that some aspects, now indisputable facts, used to raise controversy at some points, and that we should examine the question from a broader perspective.

In the then Province of Rio Grande do Sul, in 1831, the Correio da Liberdade, a newspaper of the city of Porto Alegre, called for more control by the government in the São Leopoldo Colony, which was already inhabited by numerous German immigrants, for that community was allegedly guided by people “whose languages and cultures differ much from ours and who are, in a large proportion, mercenary soldiers, well-accustomed to the immorality and plunder of the Campaigns, or even people coming from faraway countries, where clearly the most virtuous ones wouldn’t be chosen to be exported”.[1]

It seemed evident, back then, how hard it was to contain a population whose framing and assimilation was really difficult. Arriving from different nations, these culturally distinct people were, in a way, under evaluation. The possessive pronoun — language and culture that differ from ours very much — indicates a movement of belonging and, at the same time, of homogenization at an early stage in the establishment of a national identity.

The concern about the effective integration of foreigners was felt and answered by the immigrants themselves. The Colono Alemão, a paper that represented the interests of settlers, claimed that their destinies were “closely related to those of the people of Rio Grande do Sul, and even if previous governments had failed to grasp the usefulness to the Province of tightening links in this natural and healthy union, the philanthropic man and true lover of his country would not give up the idea of incorporating such industrious and peaceful people into the bosom of the big Brazilian family”.[2]

Despite the resistance, time went by, and Brazil became a large recipient of workers from other countries. In a second moment, in the mid-20th century, still during World War II, the Diário de Notícias newspaper, of Porto Alegre, published an editorial entitled Colonization and immigration, in which it showed concern over the urbanization process and the demographic voids in Brazil, which would entice the greed of imperialist nations.[3] While that article highlighted the internal aspects of migration, which was a result of the new phase of national development, another editorial of the end of the same year, Problems of immigration policy, discussed what immigration policy should be established after the war, recognizing the importance of welcoming foreign labor.[4]

When the war was over, the debate oscillated between the claim for more immigrants and the pessimism about the outcomes. In the same newspaper, an article, Displaced to Brazil, advocated the facilitation of the immigration policy concerning European war refugees, because, in their view, Brazil was wasting a unique opportunity for obtaining relatively skilled labor to countries such as Canada and the United States.[5] Soon after that, in a report called All Italian immigrants will go to Argentina, it regretted the lack of a more effective policy by Brazil’s government regarding Italian immigrants, who kept going en masse to Argentina. The consequence of this inaction would be to make Brazil “risk losing a valuable and irreplaceable contribution of blood”.[6] That was a recurrent complaint and if the country did not want to botch that opportunity, it should provide “work conditions that have compensations and guarantees capable of making them feel attached to the land”.[7]

The Correio do Povo newspaper, in its turn, expressed its perceptions in a similar way, although more frankly with respect to the racial issues. It encouraged the immigration of the Dutch, “a great racial element and a magnificent land worker” and stated, justifying itself, that this measure would not mean “to pretermit the native by choosing the foreigner. It would, instead, contribute to the improvement of the race itself and cooperate in the exploitation of the land to increase the wealth of the nation”.[8] Almost in the mid-20th century, the issue of the advancement of the race still came up, with an appeal to eugenics that would reappear soon afterwards. In a piece properly called Missed Opportunities, it deplored the fact that Brazil did not consider the “marvelous immigration possibilities that the war and the world’s maladjustments” generated, because “the import of first-class humans” would be of tremendous benefit, “due to the economical and ethnical factors it presents”.[9]

Although the ethnic aspect was indeed highlighted, the bulk of the matter still seemed to be economic, because of the chance of using well-trained labor. That happened in a piece of news that praised Argentina for its policy of welcoming immigrants. According to the author, besides farm workers, Argentina was about to receive highly-skilled people. In the end, he asks: “Meanwhile, what is being done in Brazil?”.[10]

Looking at the contemporary press, at the end of this brief review, it is symptomatic to realize how some arguments now advocated resemble those that were used in previous moments. The Brazilian edition of El País, of June 8th, 2015, for instance, featured an article whose title is unequivocal: “Late in the international context, Brazil now studies how to attract immigrants” [11]. In the same way, but adding the consequences of the crisis, an article in the BBC Brasil, of December 1st, 2015, points to the falling number of immigrants coming to the country, asserting that the data available were part of a “broader research especially demanded by the Ministry of Labor to develop policies more suitable to attract immigrants to Brazil — with an eye on the arrival of skilled labor to boost the economy” [12].

That view about immigration in Brazil, which seems to repeat itself throughout history, is not any different, generally speaking, from the ones in Rio Grande do Sul. The importance of welcoming foreign labor was featured in the issue of June 22nd, 2015 of Sul21, in which the immigrants’ work capacity, discipline and employability are praised. The business community would be open to hire these immigrants, even though prejudice concerning the different cultures and religions of some groups still persisted.[13] In fact, some cases of xenophobia, mainly against black immigrants, were reported by the state’s press in 2015. Moreover, a vague notion that foreigners come to get the jobs that could be taken by local workers was also present in that discussion.

This quick overview intends to show the historicity of the views on the phenomenon, since aspects related to the openness of the general public to immigration depend on particular  conjunctures. Immigration, recognized a posteriori as a driving force behind development, went through a hard time to be effectuated. The “selection” justified by the argument of the improvement of the race echoes even today in some hostile manifestations, especially against black immigrants. Nevertheless, governments must deal with this subject in a more rational way, because, in a more realistic perception, the repeated argument of the necessity of making it easier for immigrants to come, stay and adapt to Brazil and Rio Grande do Sul, following the example of other nations, is still noticeable.

It is possible that now, when the population aging process (particularly in Rio Grande do Sul) and the lack of professionals in many areas (especially in some regions) are making matters worse, the debate about immigration might be made on different grounds. For that to happen, it is paramount to recognize the historical contribution of immigration to the foundation of both the Brazilian society and that of Rio Grande do Sul and to change our attitude in order to make sure that immigrants are welcomed in the present and in the future.

 

[1]    CORREIO DA LIBERDADE. Porto Alegre: [S.n.], n. 23, 2 jun. 1831. Translation mine.

[2]    O COLONO ALEMÃO. Porto Alegre: [S.n.], n. 1, 3 fev. 1836 Traslation mine.

[3]    COLONIZAÇÃO e imigração. Diário de Notícias, Porto Alegre, p. 4, 27 fev. 1943.

[4]    PROBLEMAS de política imigratória. Diário de Notícias, Porto Alegre, p. 4, 5 dez. 1943.

[5]    DESLOCADOS para o Brasil. Diário de Notícias, Porto Alegre, p. 4, 8 jan. 1948.

[6]    CONVERGIRÁ para a Argentina toda a imigração italiana. Diário de Notícias, Porto Alegre, p. 1, 5 fev. 1948. Translation mine.

[7]    DIÁRIO DE NOTÍCIAS. Porto Alegre: [S.n.], 19 maio 1948. Translation mine.

[8]    CORREIO DO POVO. Porto Alegre: [S.n.], 5 maio 1948. Translation mine.

[9]    OPORTUNIDADES que se perdem. Correio do Povo, Porto Alegre, p. 4, 11 ago. 1948. Translation mine.

[10]  CORREIO DO POVO. Porto Alegre: [S.n.], 9 jul. 1948. Translation mine.

[11]  MARTIN, M. Atrasado no contexto mundial, Brasil estuda agora como atrair imigrantes. El País, Madrid, 7 jun. 2015. Retrieved  from <http://brasil.elpais.com/brasil/2015/05/29/politica/1432914508_370989.html> on 14 Aug. 2015. Translation mine.

[12]  CARNEIRO, J. D. Cai entrada de imigrantes no Brasil, aponta pesquisa. BBC Brasil, [Rio de Janeiro], 1 dez. 2015. Retrieved from <http://www.bbc.com/portuguese/noticias/2015/12/151201_imigracao_brasil_jc> on 7 Dez. 2015. Translation mine.

Economic links between Mercosur and the State of Rio Grande do Sul

The location of Rio Grande do Sul in Southern Brazil, regarded as “eccentric” by many, due to its distance from the country’s main consuming centers, becomes central when it comes to Mercosur. After all, the shared borders with Uruguay and Argentina give the state a privileged position for strengthening production and trade ties between the bloc’s countries and Brazil. Initially perceived as a threat to the state’s economy, given the productive similarities with the neighboring countries (mainly because of the relevance of agribusiness), Mercosur has become a factor for attracting investments to Rio Grande do Sul. In that crop of investment, achievements can be seen in the automotive industry, which has witnessed the creation of a regional division of labor involving complementarities and interdependences between the products manufactured in Brazil and those made in Argentina. The same can be said of the agricultural machinery sector, whose location in the state has proven strategic for meeting the needs of both the neighboring countries and the growing demand of the Brazilian midwest. From the start, Mercosur posed a strategic opportunity for a structural transformation in the state’s production structure.

[…] the integration with the countries in the southern part of the continent has proven to be able to change the major features of the state’s economy. Indeed, the state is starting to leave behind its historical peripheral condition in Brazil to play a central role within the integrated economy. Investment decisions which reflect and materialize such ongoing change are starting to be made and tailored to meet the needs of Mercosur.[1]

After more than 25 years since its creation, Mercosur still plays a strategic role in the state’s economy, although the opportunities and expectations about the bloc’s future are less promising.

The state’s economy is more open to Mercosur than the national average due to the built production complementarities and the higher share of imports, whose front door is the state and whose destination is often the center region of Brazil (Figure 1). On average, between 1991 and 2014, sales to Mercosur accounted for 14% of Rio Grande do Sul’s exports and 11.2% of the ones from Brazil. As regards imports, in the same period, Mercosur was responsible for 32.5% of the state’s foreign purchases and 9.8% of Brazil’s .

grafico-1-cecilia-tomas-eng

When comparing the state’s exports towards Mercosur with those towards other regions, the relevance of the bloc becomes even more evident (Figure 2). Throughout almost the entire period between 1991 and 2014, Mercosur was the third main destination of the state’s exports. The average share of the export value was only surpassed by the European Union (22.8%) and the U.S. (19.9%). However, their relevance in the exports of Rio Grande do Sul has been reducing significantly in recent years.

Considering each bloc member, for the period 1991-2014, on average 62% of the exports were directed to Argentina, 19% to Paraguay and 18% to Uruguay. From 1991 to 2009, the exports of Rio Grande do Sul to Mercosur increased in value at an average annual rate of 15%, while the overall state’s exports expanded in 9%. More recently, however, a sensible change can be noticed: the state’s sales to the bloc member countries shrank 2% between 2010 and 2014, while the state’s total exports grew 4%. This change reflects primarily a decrease of 9% in the sales to Argentina in the period.

The relevance of Mercosur for the state’s economy, at least when it comes to international trade, becomes even clearer when the composition of the exports to the bloc is disaggregated. By analyzing the state’s exports in a more recent period (2007-14) and by aggregate factor, we can notice that the composition of the export basket of Rio Grande do Sul to the world (Figure 3) is predominantly commodity-driven (average of 52%), while the sales to Mercosur (Figure 4) largely comprise  manufactured products (92%), which shows a very contrasting pattern.

grafico-3-cecilia-tomas-eng

grafico-4-cecilia-tomas-eng

A similar pattern can be seen when we classify the state’s exports by technological intensity. Medium-high and medium-low technology goods comprise a larger share of the exports to Mercosur, while the exports to other destinations have a greater share of nonindustrial and low-technology items. In 2014, medium-high and medium-low technology goods made up approximately 80% of the sales to Argentina and Uruguay. On the other hand, over 70% of the exports to European countries consisted of low-tech or non-industrial products, a percentage that exceeded 90% in the case of the exports to China. To the United States, the share of medium-high and medium-low technology products was 42% in the same year. However, the U.S. participation in the state’s exports has been consistently decreasing, as can be seen in Figure 2.

Therefore, Rio Grande do Sul’s exports to the Mercosur nations comprise mainly industrial products with some degree of technological intensity. The importance of such products is also revealed in the greater income-elasticity of the demand and in the high potential of long-term growth. These products also tend to be less subject to the deterioration of the terms of trade, less susceptible to substitutes in the world market and more demanded by more dynamic markets. In this case, Mercosur can be seen as an exception to the structure of the export basket of Rio Grande do Sul, which is highly concentrated in low value-added products. Thus, the proximity of the state’s economy to that of the Mercosur member countries — and the very existence of the bloc — contributes to the diversification and the quality of the state’s exports, offsetting the competitive difficulties associated with the export of manufactured goods to other regions.

As for the sectorial activity in the state’s exports to Mercosur (Table 1), a strong participation of chemicals, machinery and equipment and motor vehicles can be underlined. Mercosur is also a major destination for the products of other industries with lower participation in the state’s exports, such as petroleum products, textiles, metal products, rubber and plastic products, computer equipment and electronics. The exceptions — some of the important state’s exports of which Mercosur does not represent a relevant share — are food products, tobacco products, leather and footwear. Regarding the share of exports in the total production, the chemical and textile sectors direct much of their production to Mercosur. In the other sectors, Brazilian market and exports to other countries and blocs are more relevant.

tabela-1-cecilia-tomas-eng

As can be perceived from the discussion above, the last few years have been characterized by difficulties in the trade and production relations within the bloc, to which the economic problems faced by Argentina have greatly contributed. These difficulties do not stem only from the slowdown in the growth rates and from the high inflation in that country, which inevitably impact on its imports. They especially reflect the scarcity of foreign exchange in the face of the still poor access to external financing flows, a legacy from the crisis of the end of the convertibility plan in the early 2000s. More recently, the shortage of foreign exchange in Argentina has worsened, owing to the cooling of soybean prices in the world market. In that scenario, the crisis in the neighboring country has affected the performance of Rio Grande do Sul’s exports not only because of the drop in imports, but also because it has induced, even temporarily, the adoption of control policies over the granting of import licenses and the establishment of quotas.

Furthermore, the Government of Argentina has also been adopting structural measures aimed at overcoming the shortage of foreign exchange in the long run. They involve reissuing an import substitution policy — already evident in the agricultural machinery sector, given the “[…] change of the neighboring country from the main foreign customer into a competitor in South American and African markets”[2] — and broadening partnerships with China, in order to finance infrastructure projects in exchange for a greater opening for the manufacturing market of that Asian country. As a result, there is an increasing market share of Chinese manufactured goods imported by Argentina and a greater propensity for Brazil to adhere to bilateral trade agreements, which questions many economic advances achieved thanks to the bloc. Considering that an important part of the industry established in Rio Grande do Sul aims to occupy a strategic and central position simultaneously for Brazil and the Mercosur markets, the difficulties of the bloc also result in the loss of crucial competitive advantages for attracting investments to the state.

[1]  CASTRO, A. B. Notas para uma estratégia. In: RIO GRANDE DO SUL. Secretaria de Coordenação e Planejamento (SEPLAG). Projeto RS 2010: realizando o futuro. Porto Alegre, 1998. p. 10.  Translation mine.

[2]  FEIX, R.; DE GASPERI, E. Argentina substitui importações de máquinas agrícolas. Carta de Conjuntura FEE, Porto Alegre, v. 23, n.  12, p. 1, dez. 2014. Translation mine.