Country Case Report - Brazil

Country Case Report

Brazil

Imran Arif

International Relations

Professor xyz

13 April 2008

Outline

Thesis : Though Brazil 's economic history is littered with economic recessions , disasters and economic instability , but due recent efforts of Brazilian government in terms of formulation of efficient monetary policy , its natural resources of gold and its exports of Coffee metallurgical and food products , the economy is improving with a fairly good pace

Brazil has advanced her economy on the back of very strong growth in labor and capital accumulation , as well

as growth

Income inequality is one of the major problems of Brazil

Poverty level of Brazil is quite high for a middle income country

Main engine of growth is agriculture and agriculture related products

Brazil had three major recessions and three major booms up to 1990 .The boom of 2002 overcame the recession of 1999 and resulted in increase of Brazilian trade flow

Brazil has trade links with Latin American countries as well as others around the globe . Brazil has her reservations regarding joining the FTAA

Labor force participation rate is 70 to 75 in last few years whereas min wages are around U .S 87

After experimenting on different exchange rate regimes , finally Brazil has implemented flexible exchange rate regime combined with inflation targeting

Brazilian Central Bank is controlling the monetary policy . Though country remained economically unstable for a long time but efficient monetary policy helped Brazil to get through Country Case Report - Brazil

Brazil , a Latin American country , after its discovery in 1500 A .D underwent a lot of changes in its political setup and faced a lot of political uncertainties . The tremendous changes in its political setup had a lot of implications on its economic growth as well . Brazil remained involved in World War I and II and therefore took a long time after world war to stabilize . Over and above , time and again autocratic rule of military dictators and corrupt political regimes also contributed a lot towards its political and economic stability Democracy only flourished in bits and pieces until 1992 once electoral democracy stabilized . In the back drop of above , country had to struggle a lot against inflation and currency crisis . Though Brazil 's economic history is littered with economic recessions , disasters and economic instability , but due recent efforts of Brazilian government in terms of formulation of efficient monetary policy , its natural resources of gold and its exports of Coffee , metallurgical and food products , the economy is improving with a fairly good pace

Long Run Economic Growth

Income inequality is one of the major problems of Brazil . The latest data however shows a major reduction in income inequality as compared to late 1990s . According to the data of 'Regional Economic Outlook published in April 2007 by International Monetary Fund (IMF "the largest improvements have been registered in Brazil , El Salvador Paraguay , and Peru . However , inequality in Latin America remains very high compared with other regions (10 . According to Annual Report 2006 of The World Bank , per capita income of...