Free Brazil's Economy Essay Sample
Brazil is the largest country in South America located in the central, and eastern parts. Its economy exceeds economies of all other South American countries and it is expanding its presence in the world markets. Currently, a steady growth of Brazil and high-interest rates have made the economy of the country attractive to foreign investors. Since becoming a member of BRICS, Brazil has improved its economic and political influence in the world. This paper aims to observe the BRICs and the leading position of Brazil in it.
Brazils WTO Actions
After the consultation with the United States, Brazil has loaned the money to resolve a cotton dispute, developing its agricultural policies. The government assistance was provided in the form of direct payments to the cotton market. The U.S. contribution into Brazilian cotton production has improved the level of its economic development. Brazil has demonstrated that if a developing country has a plan, it can win in the market. As thus, due to its rapid growth, Brazil has achieved considerable success in its agricultural industry.
The economy of Brazil was not so developed in the past as it has become today. It happened because Brazil has committed to IP reforms. Until the mid-1990s, in there was a high inflation, and foreign investors were afraid to invest in the national economy. However, with the introduction of the countrys strict monetary policy, the situation was improved. Thus, the rise in prices of consumer goods in 1998 amounted to 2 percent vs. 1000 percent in 1994. At the same time, the GDP growth declined from 5.7 percent in 1994 to 3 percent in 1997 due to more stringent credit policies. In 1998, the economy of the country faced a serious challenge due to the global financial crisis. As a result, it has led to an outflow of investment from the country. Furthermore, the most serious consequences for Brazil was its failure to pay the Russian debt and the decision about the change of the percentage annual rate, which was reached 50 percent. After adjustment of the tax program and adoption of new principles of structural reforms, the International Monetary Fund gave loans to the country.
In the period from 1995 to 1998, there was a decline in almost all sectors of Brazilian industry. However, by 2000, the worlds leading economists have noted the growth of the Brazilian economy. This intensive period of economic activity has led to the fact that imports began to grow more rapidly than exports. Nevertheless, in subsequent years, Brazil has faced a new period of weak economic development. The government of Lula da Silva was unable to restrain the growth of domestic debt, which has long been more than half of GDP despite the policy of reduction of bank interest rates. Admittedly, in 2006-2007, the pace of development of the Brazilian economy remained at a level below the global.
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Brazil is the Country of the Future
Brazil has implemented numerous policies to improve its economic and political development. Thus, it ensured its residents to have the right to healthcare. The government has covered Brazilians with private insurance and publish prices for drugs, medical services, etc. every year. It bought new equipment and vaccines that contribute to the public healthcare system. Furthermore, the government has purchased all necessary drugs to stop AIDS and other epidemics. Thus, considerable investments into healthcare benefited the Brazilian community. Brazil-Merck negotiations result in Merck has lowered the prices per patients. The company has offered new technology for the local drug manufacturer. As thus, Brazil contributed to the national future therapies. Currently, Brazil takes a leading position in providing drugs in Latin America since it attracts many investors.
Brazils government contributes into the countrys economy since it serves as a core source of capital. As thus, the country plays a considerable role in the global market. Under the governance of Lula, the country has achieved considerable changes in poverty reduction. Moreover, the government has implemented beneficial industrial policies, which improved the economic position of Brazil in the world economy. It happens due to the governmental policies and programs. For instance, the country has achieved success in biofuels due to the government-supported research, which result in crop yields and the increase in fermentation technologies. Moreover, the country has increased its exports such as dry beans, technology goods, airplanes, etc.
Modern Realities of Brazil
With regard to Brazil, there are a number of reasons for the development of strategies of the interaction with member-countries on matters of common interests. These issues are related to the development of large territorial spaces, the decision of problems of demography and natural resources, the gap in per capita income, and the level of regional economic development. According to Escobar, Brazil takes part in everything that has to do with trade and economic complementarity. Obviously, the political interaction of the BRICS countries can have a positive impact on the activities of the international organizations. The BRICS countries are in favor of reforming the United Nations with a view to greater democratization of its structure, including by increasing the number of permanent Security Council members with the possible inclusion of Brazil and India.
The creation of BRICS had a natural character because it was not associated with long interstate consultations nor the will of any global economic structures and international organizations. Successful government programs and investments allow Brazil to reduce poverty and improve its economic and political development. Moreover, it becomes a major player in the global market.