Democracy is restored

These 20 years of dictatorship ended when president Neves, who had been elected in the indirect elections in 1985, restored the civil rights and freedoms. This transition would become a fact with the Constitution of 1988 when direct elections and all types of freedoms of democracy were restored.

It was in 1989 when Brazilians citizens were able to vote again since 1930 in free democratic elections. President Collor de Mello was elected but he would turn down on his charge three years later giving the power to Itamar Franco. President Franco is one of the most important political figures in the recent history of Brazil mainly because of the creation of the Real Plan.

In the year 1991, the Mercosur was created. This was a treaty that involved the principal countries of South America (Brazil, Argentina, Paraguay, Uruguay, Bolivia and Chile). This economic treaty was signed as a measure of the brazilian government to externalize its activities and create a more open economy. This treaty would allow the free trade of imports,capital, services and labor between the state members.

Useful links where the transition is explained:
http://historiaeconomica97.blogspot.com/2015/11/brasil-comentario-economico-politico_16.html 
https://www.observatoriomercosur.org.uy/libro/pasado_autoritario_y_democracia_en_brasil_22.php