1. Introduction
A decade ago, an American’s experience in Brazil may have included a trip to a soccer game, a visit to see the statue of Christ the Redeemer, and a many cups of the country’s famous coffee. For those that could afford it, this seemed like a desirable vacation destination. Again, with the exchange rate in 2003 at 3.5 reais to the dollar, this was a vacation only for those that could afford it. One might assume that this high exchange rate comes with a high standard of living and a high value of money for Brazil’s own citizens. As my article states, this is not the case.
The current exchange rate is not as high as the 2003 figure – it currently sits at 2.3 reais to the dollar. In real terms, this is barely half of the 2003 rate, due to the high inflation in Brazil. Still, the economy of Brazil is in trouble. The article states that visitors to Brazil in recent years have learned about what the locals call the “custo Brasil” – the Brazil cost.
This term is representative of the high prices for everyday goods in the country. Cars, for example, cost “at least 50% more than in most other countries” according to my article. The Economist uses a tool called the “Big Mac Index” to compare currencies around the world. According to the Big Mac Index, a burger in Brazil costs more than in countries with wealthier citizens, like Norway, Sweden, and Switzerland. Food should be cheaper to citizens in a country that has as much poverty as Brazil, but sadly that is not the case.
Furthermore, my article states that the wages of the citizens of Brazil are not nearly what they should be, despite a high minimum wage. “In countries where citizens are making livable wages, their money goes further.” Brazilians have little spending p...
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...ease, so does the price of the land. I know this may seem farfetched, especially in a country like Brazil, filled with slums and impoverished neighborhoods. It may be difficult to come across land that is worth buying, but investing in land and letting its value increase is better than allowing money to lose its purchasing power.
3. Conclusion
While the country has some serious problems to address regarding its currency, Brazil does have the tools to fix inflation. They have an agriculture sector that, if handled properly, can boost their economy’s production and create jobs for their citizens. More jobs would mean more money, and more money would lead to domestic consumption; now citizens could afford the pricy products sold in Brazil. If improvements are to be made to Brazil’s economy, they will come due to monetary policy tools being implemented in the country.
Brazil is bound to host in a two-year span the largest sport events in the World, The 2014 Soccer World Cup and The Olympic games in 2016. The country will attract a lot of investors looking for some brand exposure since the whole world will have their eyes turned to this tropical country. These events present opportunities for Brazil to benefit from tourism and prove to the world that it is ready to take its place as an important piece of global governance. Although Brazil has a flourishing economy, it still has many characteristics of a third world country. Social issues remain present in the country’s politics. There are several concerns regarding the capability of an emerging country to host events with that stature.
Globalisation has been crucial to the economic and social development of Brazil. In the late twentieth century Brazil face years of economic, political and social instability experiencing high inflation, high income inequality and rapidly growing poverty. However after a change of government in the 1990s and large structural changes in both the economic and social landscapes, the brazilian economy has been experiencing a growing middle class and reduced income gap. Since the start of the 21st century, brazil has benefitted from the move to a more global economy.
Larry Rohter was a journalist in Brazil for 14 years and from his experiences he offers in this book some unique insights into Brazilian history, politics, culture and more. In 10 topical chapters Rohter’s easy-to-read book provides a look at Brazilian history and the extraordinary changes the country has undergone -- and is still undergoing. Rother covers many significant issues, but several stand out more than others. Namely: the country’s history, culture, politics, and finally its economy/natural wealth.
The first reason why Brazil is a wealthy country on a national scale is because it has low national debt! (document B) Secondly, Brazil is a wealthy country because they have one-quarter of the world’s arable land which is great for growing crops! (document B) Lastly, Brazil is a wealthy country because Brazil was marked the eighth highest GDP in the world in 2013! The United States dollar equivalent in trillions in Brazil in 2013 was 2.5 trillion dollars! (document A) GDP stands for “Gross Domestic Product” and is an estimate of the total value of all the goods and services a country produces in a year! As a result, Brazil has many advantages that make it a wealthy country on a national
The Realm of Desire and Dream: Brazil and its Self-Constructing Middle Class of the 1980s, 1990s and Today
In the past years, Brazil has celebrated itself as a great economic performer with emerging markets and increasing influence on the international stage. However, in 2013, Brazil was paralyzed by huge demonstrations expressing deep discontent with their governments’ performance. In this paper, I look at the sudden onset of the protest and the absence of it in the previous years. I will argue that despite these protests, the government of Brazil maintains a hegemonic culture that propagates its own values and practices. Brazil experiences the process of modernization from the above, which does not quite reflect the demands of the lower class. Using Brazil as an example, I will expand on how the political leadership establishes and maintains its control.
This article looks at the impact that minimum wages has had on levels of poverty in...
De Lourdes Rollemberg Mollo, Maria and Alfredo Saad-Filho. "Neoliberal Economic Policies in Brazil (1994 – 2005): Cardoso, Lula and the Need for a Democratic Alternative." New Political Economy March 2006: 99-123.
Brazil is both the largest and most populous country in South America. It is the 5th largest country worldwide in terms of both area (more than 8.5 Mio. km2 ) and habitants (appr. 190 million). The largest city is Sao Paulo which is simultaneously the country's capital; official language is Portuguese. According to the WorldBank classification for countries, Brazil - with a GDP of 1,5 bn. US $ in 2005 and a per capita GPD of appr. 8.500 US - can be considered as an upper middle income country and therefore classified as an industrializing country, aligned with the classification as one of the big emerging markets (BEM) next to Argentina and Mexico. Per capita income is constantly increasing as well as literacy rate (current illiteracy rate 8%). Due to its high population rate (large labour pool), its vast natural resources and its geographical position in the centre of South America, it bears enormous growth potential in the near future. Aligned with an increasing currency stability, international companies have heavily invested in Brazil during the past decade. According to CIA World Factbook, Brazil has the 11th largest PPP in 2004 worldwide and today has a well established middle income economy with wide variations in levels of development. Thus, today Brazil is South America's leading economic power and a regional leader.
Brazil is a vast country in South America that has experienced extreme wealth and income disparities since its independence in 1822. The uneven income distribution, combined with several other factors, is what accounts for millions of civilians living in impoverished conditions. The Northeast is the country’s most afflicted region, with an estimated 58% of the population living in poverty and earing less than $2 a day. The systemic inequality as well as lack of development and modernization has generated chronic poverty that has had detrimental effects on society in northeast and ultimately weakens Brazil.
The arrival of the World Cup and Olympics will serve as a catalyst for Brazil to gain the recognition it desires. As enjoyable and lucrative as those years of international exposure have the potential to be, they will ultimately be short lived and fleeting in long term impact, unless the Brazilian government uses the platform afforded to it to set up long term plans to establish the “Brazilian Brand” in foreign markets. No where is this opportunity more readily available to the Brazilian government and private sector than the African continent. Long standing associations between the population of Brazil and the western coast of Africa, through the slave trade and natural migration, form an organic connection between the two entities that isn’t found in any other region of the world. With a majority Afro-decendant population and the largest concentration of individuals of African decent outside of Nigeria, Brazil is uniquely situa...
In the current economic times the development and growth of any economy has come to a near stop or at least to a drastic slow down. The face of the global economic environment has changed and many new countries are starting to change the way their country and the rest of the world does business. One such nation is Brazil, who has turned around their own economic troubles and is becoming one of the fastest growing economies in the world (World Factbook). Brazil has started developing its economy and using the opportunity to achieve a level of respect in the world.
2. Burns, Bradford E. . A History of Brazil: Second Edition. New York: Cornell University Press, 1980.
Within these countries, a large number of the country’s land is owned by a small fraction of the population. These could be owned by strongmen that are within the “in” group of the political power. Or these lands could be owned by the political power themselves as well, such as Brazil. Within Brazil, the top 10% of farmers own 85% of the land. (Duffy) Land reform will allow people the chance to grow their own food which they also could be unable to afford due to a poor economy and other factors. There is currently a movement that is pushing for land reform within Brazil.
If Brazil can take advantage of these strengths then they will be able to continue the growth they have been enjoying over recent years. The country have enough oil and gas reserves to make Brazil self-sustaining, with some to spare which can be sold abroad. Another strength Brazil have is the fact they actually have more fresh water than any other country in the world. As climate change will soon become to make water scarcer than ever before, and this will in turn make Brazil an extremely attractive prospect for people wanting to either invest or live there. The World Cup this summer was a tremendous success and this tournament, along with the build up to the Olympics that will take place in Brazil in 2016, has massively improved and is continually improving the basic physical and organisational infrastructure whilst attracting major international investors into the country. Hosting the Olympics isn’t generally a profitable investment due to the massive expenditures required throughout the tournament, however, the event like the World Cup, will give the country a massive global