Editing Politics of Brazil (section)

===New Republic (1985–1990)===
{{Main|José Sarney|History of Brazil (1985–present)}}
In 1985, the military were defeated in an election according to the scheme they had set up as a consequence of the loss of political support among the elites. The opposition candidate, [[Tancredo Neves]], was elected president, but died of natural causes before he was able to take office. Fearing a political vacuum that might stifle the democratic effort, Neves' supporters urged vice-president, [[José Sarney]] to take the oath and govern the country. Tancredo Neves had said that his election and the demise of military régime would create a "New Republic" and Sarney's term of government is often referred to by this name.

Sarney's government was disastrous in almost every field. The ongoing [[recession]] and the soaring [[external debt]] drained the country's assets while ravaging [[inflation]] (which later turned into [[hyperinflation]]) demonetized the currency and prevented any stability. In an attempt to revolutionize the economy and defeat inflation, Sarney carried on an ambitious "heterodox" economic plan ([[Cruzado]]) in 1986, which included price controls, default on the external debts and reduction of salaries. The plan seemed successful for some months, but it soon caused wholesale shortages of consumer goods (especially of easily exportable goods like meat, milk, automobiles, grains, sugar and alcohol) and the appearance of a black market in which such goods were sold for higher prices. Buoyed by the ensuing popularity from the apparent success of the plan, Sarney secured the largest electoral win in Brazilian history; the party he had just joined, [[Brazilian Democratic Movement|Brazilian Democratic Movement Party]] (PMDB), won in 26 out of 27 states and in more than 3,000 municipalities. Just after the elections, Sarney's "corrections" to the economy failed to control inflation and the public perception that he had used an artificial control of inflation to win the elections proved to be his undoing. His popularity never recovered and he was plagued by vehement criticism from most sectors of society until the end of his term. Despite popular rejection, Sarney managed to extend his term from four to five years, and exerted pressure on the Constitutional Assembly that was drafting the new constitution to abort the adoption of [[Parliamentarism]].