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Following more than three centuries under Portuguese rule, Brazil gained its independence in , maintaining a monarchical system of government until the abolition of slavery in and the subsequent proclamation of a republic by the military in By far the largest and most populous country in South America, Brazil underwent more than a half century of populist and military government until , when the military regime peacefully ceded power to civilian rulers.
Brazil continues to pursue industrial and agricultural growth and development of its interior. Having successfully weathered a period of global financial difficulty in the late 20th century, Brazil was seen as one of the world's strongest emerging markets and a contributor to global growth.
However, from about to , Brazil was plagued by a sagging economy, high unemployment, and high inflation, only emerging from recession in Brazil's rapid fertility decline since the s is the main factor behind the country's slowing population growth rate, aging population, and fast-paced demographic transition. Brasilia has not taken full advantage of its large working-age population to develop its human capital and strengthen its social and economic institutions but is funding a study abroad program to bring advanced skills back to the country.
The current favorable age structure will begin to shift around , with the labor force shrinking and the elderly starting to compose an increasing share of the total population. Well-funded public pensions have nearly wiped out poverty among the elderly, and Bolsa Familia and other social programs have lifted tens of millions out of poverty.
More than half of Brazil's population is considered middle class, but poverty and income inequality levels remain high; the Northeast, North, and Center-West, women, and black, mixed race, and indigenous populations are disproportionately affected.