Brazil was a backward country in 1850. To make this point, it is worthwhile to contrast it with a society which was modernizing at that time. There has sometimes been a tendency to draw precise lines to separate those nations that are modern from those that are not. Whether these measurements are based on the degree of urbanization or on per capita income or on the number of automobiles, they are all misleading in that they focus attention on secondary factors. It is the direction and rate of change that must be examined and not the establishment of particular benchmarks. Therefore, a look at Britain in 1850, no matter how brief, and perforce superficial, will here be useful; for it is not only by contrast with modern nations of the twentieth century that Brazil's condition at that time must be evaluated. In addition, even a hasty glance at Britain will make clear that the British presence in Brazil was not an isolated instance of British expansion, but part of a larger trend in that nation's history.

The steadily increasing flow of innovation—which goes hand-in-hand with rapid economic growth and the steady process of capital formation—is an identifying mark of modern economies. It is especially by this standard that Britain may be considered modernizing over a hundred years ago. Thus, although by 1850 the adoption of mechanical means of production had not yet become common in any but a small number of industries, the goal of mechanization had been accepted and rapid strides toward it were being taken.