The British contributed substantially to Brazilian industrial development. Despite the strength of the British-controlled export-import complex which was indifferent to manufacturing, Britishers helped directly and indirectly to begin the transformation of Brazil from an agrarian to an industrializing economy. First, they built the major part of the transport system on which industry was to depend for the receipt of raw material and access to markets. Second, much of the industrial machinery and supplies which were used by Brazilian factories were produced in Britain and sold through a distributive system created by the British. Third, they advanced not only the credits to finance these sales but often provided the loan capital that enabled Brazilians to invest in manufacturing enterprises. Fourth, the technicians who installed the equipment, directed its operation, and taught the workers to operate it were frequently British. And, finally, they invested directly in textile plants, shoe industries, sugar factories, and flour mills. The idea that the struggle for Brazilian industrialization was simply a conflict between Brazilians and foreigners is so patently erroneous that it would require no comment were it not so widespread. Although it cannot be said that their actions were the chief cause of industrialization, the British shared significantly in that task, and in so doing helped begin the modernization of Brazil.

Economic development requires certain physical facilities—e.g. roads, railroads, power plants, and port facilities—which economists have labeled the ‘infrastructure’. The fact that the British built railways and harbor works primarily to serve an export economy did not prevent these facilities from being used by industrialists.