Brazil is an emerging economic state with a lot of potential and good prospects. Brazil is part of one of the fastest growing economies in the world. Brazil is also the largest economy among Latin American countries and the second largest economy in the Western Hemisphere. Their market model is characterized by an inward-looking economy and a free market. In the past, their economy relied on import substitution industrialization, but Brazil has recently changed its policy. This policy began in the 1980s and is called neoliberalism. In this article I will write about how neoliberalism is affected by external factors outside of Brazil. I will divide my essay into four parts. The first part will examine the extent to which foreign interference has affected neoliberalism in Brazil. The second part will explain how populism was a response to neoliberalism. The third part will explain how local economic elites supported the application of neoliberal policies in Brazil and the last part will explain to what extent the application of neoliberal policies had political consequences in Brazil. After the crisis of the 1930s, Latin American countries introduced import substitution. industrialization (ISI). The ISI was supposed to reduce dependence on foreign countries. Countries using ISI were dependent on other countries' land resources used for their industries. Such as chemicals, oil and other raw materials. The ISI was supposed to help the nation move into an economy of value-added products, which were not easily susceptible to fluctuations in supply and demand in the markets. However, Brazil's economy was different from others. Brazil has not opposed foreign investment. Brazil involved the government, the front...... middle of paper ... anything that could hinder the decline in profits. Finally, eliminate the notion of public good and replace it with individual responsibility (Garcia, Martinez). As Amann and Baer assert: “rather than opting for large public offerings of shares, the privatization authorities instead chose to transfer the assets of state-owned companies to a relatively select group of large domestic and foreign investors long established” (957). This shows that even local economic elites do not benefit from neoliberalism in Brazil. Regarding the political consequences of neoliberal policies, Franco's Plan Real was a major political success, as mentioned previously. This guaranteed political stability for the moment. Different Brazilian governments have tried to reduce the Gini coefficient to reduce the gap between the poor and the rich, but have not succeeded..