Energy Policies in Brazil Jose Goldemberg The 'modernisation' of Brazil which took place after 1950 has been synonymous with the adoption of a 'petroleum-based economy'. Since Brazil has meagre petroleum resources, the foreign exchange to pay for imported oil became a fundamental problem, and a policy of heavy borrowing abroad was adopted as the solution. As heavy borrowing abroad continued, Brazil's foreign debt climbed to more than 50 billion dollars which, together with the high interest rates for debt servicing, threatened to lead the country to bankruptcy.
