Economic Development

Economic Development

2006 Page1

Brazil and South Korea are two different countries in terms of social demographic , economic environmental and political environments . As well they differ in cultural values

Brazil is more liberal than South Korea in social values but they are similar in political as well as in economic values . As well they differ in moral and spiritual values and history

In this I will highlight the similarities and differences these countries have pursued for the their economic development due to economic , social environmental and political factors and how

they have changed and evolved over the past 25 years . I will use statistics and other reports to identify the factors behind the economic development process and its evolution as well as how the future will be for the next 5-10 years in economic , social and environmental fields

The role of government in Brazil and In South Korea in economic development

In Brazil Fiscal and Public sector plays a major role in economic development . However they are constrains on growth . As Brazil has huge population and it has a policy of poverty reduction it has to reform its fiscal and macroeconomic management , which will enhance growth in short-and long term and less regulate the markets in labor and capital than in earlier periods . World Bank in its web site Brazil Country Brief highlights this in a report as follows . Brazil still confronts the challenges of making recently renewed growth sustainable - economically environmentally and socially - and safeguarding the sustainability of fiscal adjustment through greater public sector efficiency and a prudent mix of other macroeconomic policies . Looking ahead to Brazil 's reform agenda , the next steps should include continued pension , labor and financial market reforms

Other challenges include creating jobs and improving human capital stock and labor markets , continuing and sharing benefits of agricultural growth , and reconciling development and environment in the Amazon This highlights how the development Page : 2

The role of government in Brazil and In South Korea in economic development

Process change if earlier policies do not meet macro economic objectives and due to social economic pressure government has to change its economic development policy and path of development to meet its macro economic and other social and environmental goals

In South Korea compared to Brazil the Public sector and fiscal policy is very disciplined and they are a tool for macroeconomic management and as a tool to enhance growth with little inflation and the public deficit is kept to a minimum and it encourages private sector investment and improve economic efficiency and a tool for income distribution to some extent or to meet specific social program . Politics plays a lesser role in determining public expenditure in South Korea than in Brazil , which produces inefficiencies in Brazil as highlighted above . World Bank in its website Korea overview has highlighted the arguments I mentioned above as follows

The authorities have also eased fiscal policy . Despite revenue shortfalls , the government front loaded expenditures into the first half of the year...