Brazil, a Flourishing Country with Third-World Characterisitcs: On Hosting the 2014 World Cup and Olympic Summer Games of 2016

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Brazil is the largest country in South America and in Latin America, fifth largest in the world. It is one of the more diverse countries in the world, with different cultures and ethnicities. Brazil’s type of government is a Federal Republic. Brazil is on its way to growing out of its emerging market status and becoming one of the richest and most developed countries on earth. Brazil’s human, mineral, and agricultural resources are on par with those of the United States and Canada, and it has a few great opportunities to take advantage of in order to continue the growth it’s been experiencing over the past 20 years. Brazil, known for its natural resources, find in energy one of the country’s main ways of resources, being either oil and natural gas or biofuels and solar/wind power.

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.

Issues Analysis

The first major concern is the high incidence of crime. Much of the crime is related to the illegal drug trade. The off-the-books culture comes into play, too. And the deep divisions between rich and poor means t...

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...of the final product. Significant deficiencies exist in planning and in the politics.

External Environment Summary

The National Brazilian Development Bank (BNDES) continues to invest heavily in the market, providing almost R$274 billion for the period of 2010 – 2013 (up 38% from 2005 – 2008). Nevertheless, the country must continue to seek new ways to attract private capital, by revisiting institutional and regulatory frameworks, in order to have the necessary investment levels that will sustain the growing economy and allow the delivery of successful projects.

For the government to overcome deficiencies efficiently in the sectors of industry, the private sector must have an active involvement in capital investment and creation of services. Brazil’s potential in a global market is set back by inefficiencies in infrastructure that turn away private investment.

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