First steps on the territory
Vicente Yáñez Pinzón, a Spanish navigator, was the first European to be known in the region of the territory today known as Brazil. By 1500, as he advanced northwards to the mouth of the Orinoco River, he found a territory which had been assigned to Portugal in 1494 by the Treaty of Tordesillas, signed by both the Spanish and the Portuguese Ambassadors at Tordesillas (in Northwest Spain),to mark by an imaginary line down through the Atlantic 370 leagues west of Cape Verde, Portugal´s most westerly possession, the division of the territory. According to this treaty, the land on the west side belonged to Spain and the land on the east side belonged to Portugal. Later the same year, a Portuguese navigator Pedro Álvares Cabral, reached the coast of present Brazil and named it Terra da Vera Cruz (Land of the True Cross). The following year, he Italian navigator, Amerigo Vespucci, was sent to Terra da Vera Cruz by the Portuguese government and when he returned with a cargo of the valuable red wood known as brazilwood, the government changed the name of the territory from Terra da Vera Cruz to Brazil.
King John III and the captaincies
In 1530, the Portuguese king John III, divided the colony into 15 districts or captaincies and granted them to 15 donatarios, whose heirs could found cities, grant land and even levy taxes over their territories. In 1549, Thomé de Souza, the first governor general of Brazil, made his headquarters at Bahia (today Salvador), which remained its capital city for over two centuries. He also brought large numbers of slaves to overcome the shortage of laborers, what led to the foundation of Sao Paulo in 1554. In 1555, the French founded a colony on the shores of the Rio de Janeiro Bay. However, the Portuguese destroyed it and in 1567 established on its site the city of Rio de Janeiro.
Brazil´s economy
During the First two centuries, Brazil´s economy was mainly based on the sugar trade but it was changed after the discovery of diamonds and other minerals in the region of Minas Gerais, in the north part of the colony. The mineral trade through the port of Rio de Janeiro gave this city prosperity and sophistication. These facts made Pombal, the chief minister of Portugal, move the capital, Bahia, to Rio de Janeiro in 1763.
Brazil becomes a Republic
A military revolt in November 1889, led by General Manuel Deodoro da Fonseca, forced Pedro II to abdicate the Regengy of Brazil. A republic was was proclaimed and Fonseca was elected head of the provisional government. The drafting of a constitution based on the American one was completed in June 1890 but it was not adopted until February 1891. Now, Brazil became a federal republic officially named United States of Brazil with Fonseca elected its first president.