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Amazonas is the largest of the federative units in Brazil. Its limits are Venezuela and Roraima to the north, Pará to the east, Mato Grosso to the southeast, Rondônia to the south, Acre to the southwest, Peru to the west and Colombia to the northwest. A quarter of Brazil's total Indians live in the Amazon and their culture has strong indigenous and northeastern influences. The state's economy is based on industry, extractivism, mining and fishing. Regarding extractivism, a major boost in the economic life and colonization of the Amazon region was given with the exploitation of latex during the rubber cycle.
The Amazon is the only Brazilian state that has industry as the focus of the economy. In 1967 the Manaus Free Zone was created to stimulate the development of the industry through tax incentives. Thus, between 1965 and 1975, the state's annual income grew by 147%. Most of the transportation of people and cargo is done by the Madeira, Negro and Amazon rivers.
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