1986 - Sarney introduces Cruzado Plan, freezing prices and wages in effort to control inflation. But inflation explodes when freeze is lifted.
1988 - New constitution reduces presidential powers.
1989 - Fernando Collor de Mello elected president. Introduces radical economic reform including opening up of economy to imports, privatisation and a controversial freeze on savings and bank accounts. His promised economic improvements fail to materialise, and by 1991 inflation reaches 1,500%. Foreign debt payments suspended.
1992 - Earth Summit in Rio. Collor resigns after being accused of corruption. He is later cleared. Replaced by vice president Itamar Franco.
1994 - Fernando Henrique Cardoso elected president after helping to bring inflation under control. Makes controversial moves on land issue, seizing land for distribution among poor, and allowing indigenous land claims to be challenged.
1996 - Police kill 19 Amazon peasants in town of Eldorado dos Carajas.
1997 - Constitution changed to allow president to run for re-election.
1998 - Cardoso re-elected. IMF provides rescue package after economy hit by collapse of Asian stock markets.
2000 - Celebrations to mark Brazil's 500th anniversary marred by protests by indigenous Indians, who say that racial genocide, forced labour and disease have dramatically cut their population from an estimated 5 million before the Portuguese arrived in 1500 to the current 350,000.
2001 - Government says it is prepared to make changes to a development programme which critics say would have a catastrophic impact on the Amazon. Under the scheme, the Brazilian government expects to spend $40bn over seven years on highways, railways, hydroelectric projects and housing in the Amazon basin.
2001 May - President Cardoso abolishes two government development agencies for the Amazon and the north-east of the country. The authorities say the agencies set up bogus projects in order to steal development funds estimated at more than $1 billion.