Chapter 1
In chapter one, Michael Reid educates his readers on the importance of Brazil and it’s history with economic growth. The beginning of the chapter reflects on Luiz inacio lula da Silva, whom took presidency of the country in 2003. During his presidency focused on friendly reforms, monetary policies and launched a government rural electrification program that allowed 2.2 million families on the grid. In hope to, quicken their economy. This resulted in selling an extra million televisions and fridges from private business and laid a platform for growth. He also focused on a silent revolution recovery of the country’s self esteem. With the combination of growth with income redistribution, through large rises in the minimum wage and social policies, allowed 30 million Brazilians to leave poverty behind throughout 2002-2009. This resulted in their middle class buying more consumer goods.
Before reading this chapter I had little to no knowledge of Brazils importance in the world. Brazil is 8.5 million square kilometer and is recognized as the world’s fifth largest country by area. (Fun fact: all 28 countries of the European union would comfortably fit inside Brazils territory.) Brazil has 200million people occupying their country ranking it the world’s fourth most populated democracy. In 2012 Brazil was also ranked the seventh largest economy, with a GDP of US$2.4 trillion dollars. Currently Brazil is the third largest food exporter and by 2025 it is said by the FAO, that Brazil will replace the United States in ranking the largest. It is also said that Brazil will become one of the largest exporter for oil by 2020. According to he FAO, the country’s waters per head is richer than any other country in the world, with the ownership of the amazon rainforest. Brazil was also the sixth largest in manufacturing power in the year 2010.
There was some debate when it came down to Brazil being a component of the BRIC label because of a slower economy compared to Russia, India and China. However, the overall income per head in purchasing power party terms was a third higher than China and almost reaching three times that of India and is the most open as well as western of all four of the countries. Their democracy is free of religious/ ethnic tension and terrorism unlike the other three countries. This allows for no border disputes and no strategic threats, giving Brazil an advantage. Brazil was able to achieve the combination of faster economic growth and low inflation with policies implemented by former President Fernando Cardoso. This allowed for rapid growth in the mining companies, leading investment banks, and meat companies. Making JBS-Friboi the worlds largest meat company and Vale, the worlds second largest mining company. With the country growth of 7.5% in 2010, it was said that Sao Paulo would soon be a financial Centre of the world importance.
With the election of new president Dilma Rousseff, the first women president, Brazil experienced reputational backlash. The country’s manufacturers lacked competition and it’s services produced low productivity. The country’s airports as well as roads were all congested and the ability to produce enough electricity to power economic growth was doubted. Dilma Rousseff made efforts to sustain growth while restraining inflation and dealing with a overvalued currency, going from one policy to another leaving uncertainty in the country’s growth. There country didn’t see any economic growth for 18 months in 2011 with inflation over 6% a year and a decrease in the pace real income generated. Brazils economist declared that without a new liberal reform, Brazil could not have any growth higher than 2-3% per year without causing inflation. In 2013, the people of Brazil spoke and protested against the bureaucracy causing the government to rethink the ways in which they handle situations.
In Brazils peak years 1930-1980, the country’s economy was the rapidly growing fastest then any other country in the world. President, Juscelino Kubitschk implemented fifty years of development into a ‘five year plan’ turning Brazil into an industrial power, building Brazils capital, Brasilia. Reid then explains to his readers at the end of the chapter that Brazil is not well known for its importance in the world despite their outstanding achievements. He also helps his readers understand that Brazilians aren’t much different then us Americans with our lack of concern on the environment.
Before reading this chapter I had little to no knowledge of Brazils importance in the world. Brazil is 8.5 million square kilometer and is recognized as the world’s fifth largest country by area. (Fun fact: all 28 countries of the European union would comfortably fit inside Brazils territory.) Brazil has 200million people occupying their country ranking it the world’s fourth most populated democracy. In 2012 Brazil was also ranked the seventh largest economy, with a GDP of US$2.4 trillion dollars. Currently Brazil is the third largest food exporter and by 2025 it is said by the FAO, that Brazil will replace the United States in ranking the largest. It is also said that Brazil will become one of the largest exporter for oil by 2020. According to he FAO, the country’s waters per head is richer than any other country in the world, with the ownership of the amazon rainforest. Brazil was also the sixth largest in manufacturing power in the year 2010.
There was some debate when it came down to Brazil being a component of the BRIC label because of a slower economy compared to Russia, India and China. However, the overall income per head in purchasing power party terms was a third higher than China and almost reaching three times that of India and is the most open as well as western of all four of the countries. Their democracy is free of religious/ ethnic tension and terrorism unlike the other three countries. This allows for no border disputes and no strategic threats, giving Brazil an advantage. Brazil was able to achieve the combination of faster economic growth and low inflation with policies implemented by former President Fernando Cardoso. This allowed for rapid growth in the mining companies, leading investment banks, and meat companies. Making JBS-Friboi the worlds largest meat company and Vale, the worlds second largest mining company. With the country growth of 7.5% in 2010, it was said that Sao Paulo would soon be a financial Centre of the world importance.
With the election of new president Dilma Rousseff, the first women president, Brazil experienced reputational backlash. The country’s manufacturers lacked competition and it’s services produced low productivity. The country’s airports as well as roads were all congested and the ability to produce enough electricity to power economic growth was doubted. Dilma Rousseff made efforts to sustain growth while restraining inflation and dealing with a overvalued currency, going from one policy to another leaving uncertainty in the country’s growth. There country didn’t see any economic growth for 18 months in 2011 with inflation over 6% a year and a decrease in the pace real income generated. Brazils economist declared that without a new liberal reform, Brazil could not have any growth higher than 2-3% per year without causing inflation. In 2013, the people of Brazil spoke and protested against the bureaucracy causing the government to rethink the ways in which they handle situations.
In Brazils peak years 1930-1980, the country’s economy was the rapidly growing fastest then any other country in the world. President, Juscelino Kubitschk implemented fifty years of development into a ‘five year plan’ turning Brazil into an industrial power, building Brazils capital, Brasilia. Reid then explains to his readers at the end of the chapter that Brazil is not well known for its importance in the world despite their outstanding achievements. He also helps his readers understand that Brazilians aren’t much different then us Americans with our lack of concern on the environment.