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Brazil is a constitutional federal republic composed of 26 states and the Federal District. The federal legislative branch exercises authority independent of the executive branch. The elections marked the fourth time since the end of military rule in that citizens freely chose their president and elected the legislative bodies in accordance with the Constitution.
All parties competed on the basis of fair and equal procedures. The Constitution provides for an independent judiciary; however, it was often inefficient and, especially at the state level, subject to political and economic influences. The military is responsible for national defense and generally played no role in internal security. The federal police force is very small and primarily investigative; police forces fall primarily under the control of the states: The "civil police" are plainclothes officers with an investigative role, and the "military police" are uniformed police responsible for maintaining public order, with a separate judicial system.
While civilian authorities generally maintained effective control of the security forces, members of the security forces committed numerous serious human rights abuses, primarily at the state level. The country had a market-based and diversified economy and a population of approximately million.
Successive governments have pursued a policy of reducing the traditionally dominant role of government in the economy. They encouraged greater private sector participation through deregulation, privatization, and removal of certain impediments to competition, trade, and investment. Industrial production, including mining operations and a large and diversified capital goods sector, accounted for 39 percent of gross domestic product GDP , agriculture contributed 9 percent, and services the remainder.
Exports consisted of both manufactured and primary goods, ranging from regional airliners to soybeans. High government debt approximately 58 percent of GDP was primarily domestically held and complicated fiscal and monetary policymaking.