International and national commodity control, 1930-1945 : sugar and the Brazilian case

At the international level, it visa the repercussions of the Depression which generated an active interest in commodity regulation. Light international commodity agreements established between 1931 and 1911 stressed the need for the balancing of the supply of and the demand for raw materials. National sugar controls revealed a close association between quota schemes introduced and social welfare measures proposed for the benefit of sugar workers. Sugar controls in Brazil were conducted by the Institute of Sugar and Alcohol (Institute do Acucar a do Alcool), one of a series of semi-autonomous government agencies (autarqulas), which, in the absence of constitutional government from 1937, acted as direct organs of government in Brazil.The characteristics of the sugar controls introduced in Brazil were found to be fourfold : quantitative (the imposition of production quotas, and the stimulation of the increased production o: motor-alcohol, a fuel deriving partly from alcohol production), qualitative (the encouragement of the production of higher grade sugar and alcohol), social (the clarification of labour law and the introduction of social welfare measures relating to sugar workers) and political (the supervision of syndicate formation and the appointment of personnel to run the Institute).The impact of commodity control at each level was found to vary. Common shortcomings were the absence of the power to enforce the controls established and the disintegration of controlling policies during the Second World War. Although its authority was limited, however, commodity control was shown in the Brazilian case study to have important and wide reaching repercussions which contributed to the decline of the NorthEastern region and the expansion of the Centre-South.