A not-updated linguistic survey found 188 living indigenous languages with 155,000 total speakers. In 2007, Fundação Nacional do Índio (English: National Indian Foundation) reported the presence of 67 different tribes yet living without contact with civilization, up from 40 in 2005. With this figure, now Brazil has the largest number of uncontacted peoples in the world, even more than the island of New Guinea.
When the Portuguese explorers arrived in 1500, the Amerindians were mostly semi-nomadic tribes, with the largest population living on the coast and along the banks of major rivers. Unlike Christopher Columbus who thought he had reached India, the Portuguese sailor Vasco da Gama had already reached India sailing around Africa two years before Pedro Álvares Cabral reached Brazil. Nevertheless, the word índios ("Indians") was by then established to designate the peoples of the New World and stuck being used today in the Portuguese language, while the people of India are called indianos. Initially, the Europeans saw the natives as noble savages, and miscegenation of the population began right away. Tribal warfare and cannibalism convinced the Portuguese that they should "civilize" the Amerindians.
Portugal had little interest in Brazil, mainly because of the high profits to be gained from its commerce with India, Indochina, China and Japan. Brazil's only economic exploitation was the pursuit of brazilwood for its treasured red dye. From 1530 the Portuguese Crown devised the Hereditary Captaincies system to effectively occupy its new colony, and later took direct control of the failed captaincies. Although temporary trading posts were established earlier to collect brazilwood, with permanent settlement came the establishment of the sugar cane industry and its intensive labor. Several early settlements were founded along the coast, among them the colonial capital, Salvador, established in 1549 at the Bay of All Saints in the north, and the city of Rio de Janeiro on March 1567, in the south. The Portuguese colonists adopted an economy based on the production of agricultural goods for export to Europe. Sugar became by far the most important Brazilian colonial product until the early 18th century. Even though Brazilian sugar was reputed to be of high quality, the industry faced a crisis during the 17th and 18th centuries when the Dutch and the French started to produce sugar in the Antilles, located much closer to Europe, causing sugar prices to fall.
During the 17th century, private explorers from São Paulo Captaincy, now called Bandeirantes, explored and expanded Brazil's borders, mainly while raiding the hinterland tribes to enslave native Brazilians. In the 18th century, the Bandeirantes found gold and diamond deposits in the modern-day state of Minas Gerais. Profits from the development of these deposits were mostly used to finance the Portuguese Royal Court's expenditure on the preservation of its Global Empire and the support of its luxurious lifestyle. The way in which such deposits were exploited by the Portuguese Crown and the powerful local elites burdened colonial Brazil with excessive taxation, giving rise to some popular independence movements such as the Tiradentes in 1789; however, the secessionist movements were often dismissed by the colonial authorities. Gold production declined towards the end of the 18th century, beginning a period of relative stagnation in Brazil's hinterland. Both Amerindian and African slaves' man power were largely used in Brazil's colonial economy.
In contrast to the neighboring Spanish possessions in South America, the Portuguese colony of Brazil kept its territorial, political and linguistic integrity, through the efforts of the colonial Portuguese administration. Although the colony was threatened by other nations during the era of Portuguese rule, in particular by the Dutch and the French, the authorities and the people ultimately managed to protect its borders from foreign attacks. Portugal even sent bullion to Brazil, a spectacular reversal of the colonial trend, in order to protect the integrity of the colony.
In 1808, the Portuguese court, fleeing from Napoleon’s troops who were invading Portugal and most of Central Europe, established themselves in the city of Rio de Janeiro, which thus became the seat of government of Portugal and the entire Portuguese Empire, even though it was located outside of Europe. Rio de Janeiro was the capital of the Portuguese empire from 1808 to 1815, while Portugal repelled the French invasion in the Peninsular War. After that, the United Kingdom of Portugal, Brazil and the Algarves (1815–1825) was created with Lisbon as its capital. After João VI returned to Portugal in 1821, his heir-apparent Pedro became regent of the Kingdom of Brazil, within the United Kingdom of Portugal, Brazil and the Algarves. Following a series of political incidents and disputes, Brazil achieved its independence from Portugal on 7 September 1822. On 12 October 1822, Dom Pedro became the first Emperor of Brazil, being crowned on 1 December 1822. Portugal recognized Brazil as an independent country in 1825.
In 1824, Pedro closed the Constituent Assembly, stating that the body was "endangering liberty". Pedro then produced a constitution modeled on that of Portugal (1822) and France (1814). It specified indirect elections and created the legislative, executive and judicial branches of government; however, it also added a fourth branch, the "moderating power", to be held by the Emperor. Pedro's government was considered economically and administratively inefficient. Political pressures eventually made the Emperor step down on 7 April 1831. He returned to Portugal leaving behind his five-year-old son Pedro II. Until Pedro II reached maturity, Brazil was governed by regents from 1831 to 1840. The regency period was turbulent and marked by numerous local revolts including the Male Revolt, the largest urban slave rebellion in the Americas, which took place in Bahia in 1835.
On 23 July 1840, Pedro II was crowned Emperor. His government was marked by a substantial rise in coffee exports, the War of the Triple Alliance, and the end of slave trade from Africa in 1850, although slavery in Brazilian territory would only be abolished in 1888. By the Eusébio de Queirós law, Brazil stopped trading slaves from Africa in 1850. Slavery was abandoned altogether in 1888, thus making Brazil the last country of the Americas to ban slavery. When slavery was finally abolished, a large influx of European immigrants took place. By the 1870s, the Emperor's control of domestic politics had started to deteriorate in the face of crises with the Catholic Church, the Army and the slaveholders. The Republican movement slowly gained strength. The dominant classes no longer needed the empire to protect their interests and deeply resented the abolition of slavery.Indeed, imperial centralization ran counter to their desire for local autonomy. By 1889 Pedro II had stepped down and the Republican system had been adopted in Brazil. In the end, the empire really fell because of a coup d'état.
Pedro II was deposed on 15 November 1889 by a Republican military coup led by general Deodoro da Fonseca, who became the country’s first de facto president through military ascension. The country’s name became the Republic of the United States of Brazil. From 1889 to 1930, the dominant states of São Paulo and Minas Gerais alternated control of the presidency. A military junta took control in 1930. Getúlio Vargas took office soon after and remained as dictatorial ruler until 1945. He was re-elected in 1951 and stayed in office until his suicide in 1954. During this period Brazil also took part on World War I and Word War II. After 1930, successive governments continued industrial and agricultural growth and the development of the vast interior of Brazil. Juscelino Kubitschek's office years (1956-1961) were marked by the political campaign motto of plunging "50 anos em 5" (English: fifty years of development in five).
The military took office in Brazil in a coup d'état in 1964 and remained in power until March 1985, when it fell from grace because of political struggles between the regime and the Brazilian elites. In 1967 the name of the country was changed to Federative Republic of Brazil. Just as the Brazilian regime changes of 1889, 1930, and 1945 unleashed competing political forces and caused divisions within the military, so too did the 1964 regime change. Democracy was re-established in 1988 when the current Federal Constitution was enacted. Fernando Collor de Mello was the first president truly elected by popular vote after the military regime. Collor took office in March 1990. In September 1992, the National Congress voted for Collor's impeachment after a sequence of scandals were uncovered by the media.
The vice-president, Itamar Franco, assumed the presidency. Assisted by the Minister of Finance at that time, Fernando Henrique Cardoso, Itamar Franco's administration implemented the Plano Real economic package, which included a new currency temporarily pegged to the U.S. dollar, the real. In the elections held on 3 October 1994, Fernando Henrique Cardoso ran for president and won, being reelected in 1998. Brazil's current president is Luiz Inácio Lula da Silva, elected in 2002 and reelected in 2006.