The Brazilian Development

Résumé du document

In the last few years, we assisted at the considerable development of Brazil. In fact, its economy is now considered as the ninth most powerful economy of the world and Brazil is now the leader in South America. It is now playing an important role in the international trade of goods and services. Brazil belongs to MERCOSUR; it is one of the countries who strongly supported the creation of the G-20. In 2008, Guido Mantega, Minister of Finance, Brazil, was the chairperson of this group, which denotes the international recognition of the Brazil's importance in the world. Moreover, Brazil was chosen by the Federation International de Football Association (FIFA) to host the World Cup 2014 and by the International Olympic Committee to organize the Olympic Games in Rio de Janeiro in 2016. We may wonder how Brazil managed such a development with economic, politic and socio-cultural factors. Reviewing the political history in Brazil in the last fifteen years: 1994: New president Itamar Franco nominated Senator Fernando Henrique Cardoso, Minister of Finance; the Real Plan is created in an attempt to stabilize the currency. In the elections of that year, which were once again decided in the second round, the confrontation was between Luíz Inácio da Silva of the PT and Fernando Henrique Cardoso (FHC). 1995-1998: In order to consolidate economic stability and put a stop to the State's fiscal crisis, brought about by internal and foreign debt, constitutional reforms were carried out. At the same time, monopolies were brought to an end in various sectors, such as oil, telecommunications, gas pipelines and coastwise shipping. 2002: Luiz Inácio Lula da Silva, a former trade union leader and factory worker of the Labor Party (PT), was elected with 52.79 million votes (61.2% of valid votes), in the second round of the elections. On taking office, he was faced with evasion of capital, increasing inflation and a public debt rate corresponding to 63% of Gross Domestic Product, factors which compromised the efforts to stabilize the Brazilian currency, the Real.

Extraits

[...] Nevertheless, the “National Development BNDES, is in charge of this function. And yet, this organism is independent of the private capital market and even supplants the existence of a private capital market (Kregel, J. 2009). Therefore, Brazil's financial system and economy were much less affected by the crisis. Likewise, Brazil resisted better to the financial crisis than other BRIC countries because its structure supported research and development and provide a balanced expansion based on industry and development of natural resources and agriculture. [...]

[...] 2010; Brics: The changing faces of global power; Financial Times; January 17 of 2010 Bremmer, Ian - Keat, Preston - Schaap, Ross Country Assessments. Harvard Business Review. Ewing, J. ; 2010 ; Emerging economies gain place at the table ; Internationald Herald Tribune ; January ; p.11 Hill, Charles W. L Global Business Today. 3rd edition. McGraw Hill. Kregel, J. 2009; The global crisis and the implications for developing countries and the BRICs: Is the really justified?; Brazilian Journal of Political Economy 341-356; October-December 2009 Mattey, H., Fabiosa Jacinto F., Fuller Frank H. [...]

[...] Appendix The BRICS: Growing Markets Appendix The Foreign Direct Investments in the BRICS: Appendix Bank Return Equity in the BRICS Appendix Brazil Exports Appendix 10: Brazil Activity Map Appendix 11: Brazil Land Use Appendix 12: Brazil Geography Map Bibliography Literature Ball, Don A. - McCulloch, Wendell H. Jr. Frantz, Paul L. Geringer, J. Michael. Minor, Michael S International Business: The Challenge of Global Competition. 10th edition. USA. McGraw Hill. Battacharya, A.K. [...]

[...] 2009) As we saw, Brazil's economy overcame the financial crisis better than most of countries. Thus, the Central Bank expects GDP growth of for 2010. V.Agriculture and Renewable Energies: Two Brazilian industries with important international perpectives Agriculture Agriculture is a key industry of Brazil. Indeed, it represents of the GDP and even 25% if agribusiness (the various businesses involved in food production, including farming and contract farming, seed supply, agrichemicals, farm machinery, wholesale and distribution) is included. Moreover, agriculture products accounts for 42% of the GDP as announced the Brazilian Minister, Reinhold Stephanes, on Thursday 18th of February of the Brazilian labour force worked in the agriculture sector which represents around 100.77 million. [...]

[...] In this way, Brazil established many competition laws since the “Competition Policy System” (CPS) in 1994 (See Appendix Competition Policy System laws). Brazil's government, in the recent years, has allowed foreign companies to set up their own business in industries which were regulated in the past like steel, electricity and telecommunications. Moreover, the Brazil's governments imposed anti-dumping measures to protect its domestic economy against unfair investments. Secondly, Brazil's economy is very attractive for foreign investments. Indeed, foreign companies do not have any constraints concerning remission of profits. [...]