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Offering a systematic, critical analysis of the presidency of Fernando Cardoso, this ambitious case study assesses government policies within the framework of the 'new economic model' of globalization and structural adjustment. Petras and Veltmeyer argue that Cardoso paved the way for what amounted to the takeover of a large and important part of Brazil's economy by foreign investors. The authors discuss the neoliberal model of capitalist development, the privatization of key sectors and enterprises, the human cost of structural adjustment, and the search for a community-based form of local development. The crisis in agriculture and the dynamic responses of the country's rural landless workers precipitated the rise of Brazil's populist new president, Lula, whom the authors charge has started down the same path as his predecessor.