Brazil - from the ‘Country of Tomorrow’ Into a Leading Emerging Economy
Under the leadership of President Lula, Brazil embarked a series of pro-market reforms, which transfers Brazil from the ‘country of tomorrow’ into a leading emerging economy. Nowadays Brazil has been the World’s sixth largest economic entity and treated as BRICs together with Russia, India and China.
As a developing Latin American country, Brazil is rich of natural resources, adequate of labor forces with a vast territory. The government makes the pro-market and institutional reforms to simply the redundant process, damage barriers, make full use of the industries competitive advantages and therefore make Brazil a miracle of economic development. In terms of fiscal policy, the government safeguarded the central bank’s independence, controlled the budget deficit and reduced the proportion of the foreign debt. As a result of this, the Brazilian currency, Brazilian Real stay stable, the deficit and debt has been reduced and even make budget surplus in recent years. Something worth to point out is that in 2008 Brazil, for the first made credits to other countries.
As for the domestic institutional reforms, it also contributes a lot to the economic development. Compared to other countries, Brazil has a high and complex taxation, which causes the government to make the simplification and reduction of taxation. Consequently, the domestic consumption, which is great influenced by the consumption tax increased substantially. Because of years of messy and fractious politics, the domestic infrastructure in Brazil is really poor. The government took steps to invest in the infrastructure areas such as repairing roads and railways and developing energy industries.
In the area of global corporation, President Lula established the policy of trade diversification policy. Both the import and export increased substantially with a widely cooperation with the whole world. Besides the largest partner China, Brazil also developed trade with Latin America, other Asian countries, the
As a developing Latin American country, Brazil is rich of natural resources, adequate of labor forces with a vast territory. The government makes the pro-market and institutional reforms to simply the redundant process, damage barriers, make full use of the industries competitive advantages and therefore make Brazil a miracle of economic development. In terms of fiscal policy, the government safeguarded the central bank’s independence, controlled the budget deficit and reduced the proportion of the foreign debt. As a result of this, the Brazilian currency, Brazilian Real stay stable, the deficit and debt has been reduced and even make budget surplus in recent years. Something worth to point out is that in 2008 Brazil, for the first made credits to other countries.
As for the domestic institutional reforms, it also contributes a lot to the economic development. Compared to other countries, Brazil has a high and complex taxation, which causes the government to make the simplification and reduction of taxation. Consequently, the domestic consumption, which is great influenced by the consumption tax increased substantially. Because of years of messy and fractious politics, the domestic infrastructure in Brazil is really poor. The government took steps to invest in the infrastructure areas such as repairing roads and railways and developing energy industries.
In the area of global corporation, President Lula established the policy of trade diversification policy. Both the import and export increased substantially with a widely cooperation with the whole world. Besides the largest partner China, Brazil also developed trade with Latin America, other Asian countries, the