Tuesday, November 11, 2008

BraxiL in the last two decades!





Introduction

Brazil is considering as developing country. Beside, we have fifteen European countries to be one power economy community in Europe. In generally, world economy, from east to west, has been changed rapidly in many ways as in good and bad, growth and slow last decades. First at all, it should tell the US economy is the top ranking of the World Economy. Its effects not only to Europe, Asia and Africa but South America like Brazil and other regions or group of nation as ASEAN, EU and BRIC economies (India, China, Brazil, and Russia). , Brazil is another economic growth competitor to the other economies in the World but it is appearing in South America. Its acreage is the fifth large nation in the area and the population reaches 191,908 million in 2007 or 1.3 % population growth. Brazil boundaries has been faced to the east by Atlantic Ocean and other nations as Argentina, Bolivia, Colombia…The climate here is mostly tropical but more heat in south side. Brazil has a longer history than USA or Japan. Its Colonial Era Period is from 1500s to 1822s therefore Brazil has been absorbed and obtained highly stratified society from the colonial system. Brazil was a Portuguese’s colony in the past until in the year 1822 when this country becomes an independence nation. Brazil is only country in South America to be heavy in inheriting languages and cultural from Portuguese. Even Brazil culture has been affected by these elements above but Portuguese culture is only more affection for Brazilian's close relationship event in colony episode with this empire. Portuguese is carried to here language, catholicity and colonial architecture types. There are other aspects has been contributing to Brazilian culture from Eurasia, South-American-born aboriginal and helot from Africa. In fact, Brazil could be viewed as a multicultural and multiracial society. Nowadays Brazil political system is as Federal Republic Charter under its federal constitution. It has Federal, State and City governments and its political system has three legislative, executives and judicial branches like US government. One of its republic’ politics martinet is multiparty system as encouraging and warranty about free politics. At present there are 15 big and small political parties joining in Brazil Congress. Brazil is the first leading nation about politics and economy in the South America region. However, Brazil still remains some difficult issues as unstableness in economic field and society that preventing Brazil to become an influential World power. Brazil also was facing an unstable political issue in 1964. In the first few years after main military intervention of its political issue, Brazil continues to grow fast its economy by having an economic reform and new polices. But a few years later, that Brazil has faced with a very difficult time by failing to follow these reforms. Government has faced a high national debt from foreign countries. Its government became a dictatorial system in that year. It took 15 years later for Brazil to begin rebuild its democracy and re-fix whole worst economy with an inflation reaching 25% high in 1985. In 1985, a new government was birth under a leading of President Fernando Henrique Cardoso. He has put on his platform for renew whole economic system and the first result his government been collected by preventing financial crisis in 1998. He also was pursuing the political reform following years. The most arduous problems still remains in society that is inequality in income among citizens as well as many another lancination social matters. Last few years, Brazil has resulted in resolving the “population living below poverty line.” and creating more jobs, reducing dependence on foreign oil. Brazil is another economy dragon has been growing steadily with an average GDP 4.5% every year since 2003 to 2007. The last year is at $1.836 trillion or 5.4 % and GDP per capital is to reach $9,700 in 2007 to become the largest and strongest economy in South America. In 2007, Brazil is considered as a World’ tenth largest economy for exchange rate market and it has a deep and wide market with population closed 200 million. Brazil is a premier economy in the Latin American. This is potential economy market not only for US, China but other great investment partners. With per capita income is above fair-to-middling in the World. At present, Brazil has a huge work force resource and specializing in mining, agriculture products… Its economic growth passes away overcome other economies in the region. Nowadays, Brazil opens its door wider to the global economy. Their main exporting commodities are transport equipments, iron ore, soybean, coffee, autos and footwear. Their export key partners are US 14.2%, China 9.2% Argentina 8.3%, Germany 4.4%, Japan. Most of their imports-commodities are machinery, electrical and transport equipments, chemical, oil, automotive parts and electronic merchandises. Their largest import partners are US with 20%, China 8.9% and Japan 4.6% in 2007. The trade among nations, Brazil-China reaches $2.1 trillion in 2007 compared with $1.76 trillion in 2006 or 20% per year averaged increasing.
Brazil is Latin American regional, headmost country about politics and economy. During world post-war word stage II to 1990s, most of Brazil administrations have concentrated in economic development by opening its market to the globe and establishing an independent diplomatic policy. Last few years, Brazilian has the speed increase not only with its South America neighbors but European, North America and Asia, additionally play essential in United Nation’s mission’s role. As an agricultural attribute is in good progress and fine industrial development both production and services, Brazil economy has surpassed other ones in the same region to become the better involved and expanded fields to the international market. In fact, Brazil nation is in rich natural resources, a leading about who produce cane-sugar, coffee, and a country where there is most developed ground-ranched branch, to make breeding a main activity. Brazil also has been absorbing a high technological science in many produced fields and researches from aboard. An agriculture make up 9% GDP, key product is cotton coffee, bergamot soybean, maize cane-sugar, fat-stock meat cocoa, hulled rice… Industry seizes aluminums 32% GDP, product premier that be steel, transport equipment, electrical consumer products and Services is seizing about 59% total of nation GDP.
The firstly Brazil currency was called “Cruzeiro” where it’s established by Brazil government and IMF in early 1942. Most of its exchange rate system and monetary policy has been directly control and regulate by the National Monetary Council. Brazil has applied limited flexible exchange rate regime in the late 1968. At that time US dollar is dominated currency in the World markets and because US dollar floating every time therefore Brazil’s Currency always keep closed its exchange rate relationship to the US currency. Beginning 1971s, US dollar was starting lost its value, this is cause for the “Cruzerio” Brazil currency‘s devaluation in terms of gold. The gold content of Brazil currency was also reducing since the US currency has a heavy devaluation in the 1973s. From 1942 to 1990, Brazil has eight times to change its currency and during its periods, it keeps losing the valuation till 1988, The Central Bank has required any major exchanges or payments should be pay out by gold. After few times to change its national currency and lost the currency valuation, the Brazil government has used a new exchange rate system that upon on the bands where the Band was set at Brazil real (R) R$0.98 per US. Dollar. This exchange rate system has been changing rapidly by time and its supply and demand. In fact, the flexible exchange rate regime has been used by Brazil Government since 1990 under the limited intervention from its government. This regime has been combined with the Bands where it’s controlling the money creation. Nowadays, Brazil has not change much its exchange rate system since the independently flexible regime was applied for its currency exchange in 1999s.
Conclusion

At present, Brazil average GDP is reaching 4.0% yearly from 2003 to 2007. The total consumer goods spending rising up at 3.8% annually, record to the $1.410 trillion in the year 2007 to $3.300 trillion in 2030, with an average rate of increasing and a very healthy condition of its growth, its poverty is decreasing in years to come. Many other World economists also acknowledged that Brazil economy is in balance staging of economic development, stabilization and indestructibility. It has also been recognized as a potential nation in South America about oil, ethanol, and diesel bioscience energy. In additional, Brazil has a progression in Automobile industry, surpassed France to become the sixth largest industry in the World, records at 1.69 million cars- export in the first six months of the year 2008. Although Japan was remains as World’s largest automobile industry with 6.06 million car-producing, China 5.2 million and US 4.89 million. Brazil is a potential market in the BRIC group beside China, Russia and India with the attracted capital investment of US technology corporations. It is just in August, Brazil import turnover of $17.4 billion, increasing 51% compared 2% higher than in the same last year period. This is a cause for its decreased exports at 38.4% than corresponding period of last year.
Brazil country is reached at 192 million people in 2007 to be the fifth largest nation with population, less than 2/3 United States population, and 1/6 China population where is a nation along with the prospective market in the long run and technological market but the instability of Brazil at both economic and political issues in the past were shading its growth opportunities. Even if Brazil economy has potential growth, large size and important economy but its problems still exist like corruption, analphabetic and poverty that holdbacks the big development from Brazil to become a developed nation. Brazil still has a long way to reform its whole economic and political systems, needing clear and opening policies in which directs this nation in the next level.

Monday, November 10, 2008

Japan in the past, present and future!


Introduction

Social, Political and Economy systems
Japan country is like an arc archipelago next to East side of European and Northwest Asia continent, include island chain between the North Pacific Ocean and the Sea of Japan, east of the Korean Peninsula. Japan is as an island country, have running total acreage is 377, 834 square kilometers. Its total land is likely an arched skiff where it lies along way to the near of east of Asiatic continent with an length 3,800 milestones, from 20 parallel of latitude degrees boreal that with reversions Antarctic is Okinawa, to 45 parallel of latitude degrees are boreal with same upper part the reversion Hokkaido. This terrain are being compared the length from Miami, United States tracing up to end of Montréal area of Canada. Japan has more than 3, 900 islets and 4 big reversions.
There four main islands Hokkaido, Honsnhu, Kyushu, Okinawa where the climate is so non-thermal and the weather is always dry with four different seasons during a year. Japan is named as a Sunrise country where it’s established has manifold culture. A country has sharply young flooded cheery-blossom with girls winsomely in ministry KIMOTO. It also has a special paper folding art ORIGAM tradition, palm purified that slick in tea art laws is original, floral arrangement art IKEBANA. Japan society has strokes special about culture dealt. Japanese often incline salutation by Person staf down and lowering degree Hinge Social standing of both people. This is an essential omen to reveal respect such as another custom stroke is swap. A Department of Education including science culture, sports and technology is a highest agency to manage Japan’s culture. Japan’ culture have functions and its possession role in its society nowadays, play wherewith element essential role. Japan also promotes its language to the World as a ways and means to expanding its global business. In addition, for number of non-resident learns Japanese in Japan and in the World is increasing, manifold programs and actions research also under way who is to stimulating Japanese Education. Japanese Constitution has been expressed that “No War” in which Japanese swear to chase peaceful strategy since 1946 publicly. Japanese Congress is the highest legislature branch with 512 House of Representatives and 252 senators. House of representatives has 4-years term and Senator with 6-year term. Japan is identical country about people and cultural decoction. People without Japan origination make up more than 1% only in 2002. The very quickly of progression in economic field is a cause for Japanese social changes in 1990s and 2000s from large member-family to small family with parents and children, rates drop from 44% in 1995 to 13.7% in 2000. Family’s members have been limited in each family unit, and the home residence is just enough for a few people for living.
Japan is considering as number two power country in the World Economy. After World War II Japan is a capitalistic nation, like the US. However, because of cultural differences, the resulting economic activity appears far different than US. The United State of America has privatized most of the Government run institutions. This significantly lowered the cost of running their government. On top of these, there were great restrictions of Japan's rebuilding their military - again an incredible boom for the economy. The Japanese economy suffered a crisis in the 1990's and has kept it's head above water why they continue to try to find a way of modernizing, once more, without losing either social cohesion or historical distinctiveness. It got the usual quasi-capitalistic mix with government support for advanced industries. An integrated system has been applied in Japan Economy for decades by Japanese economists that accentuate the relationship between its currency, goods and people for a long-term. There is a close connection among banking for money, companies for goods. Japan Economy has earned a great respect for its economic efficiency.
Government Role in the Economy, International Trade, Import and Export
According to Ming Wan, (1998)” Japan is often seen as a power that knows how to achieve economic success but does not know what to do in foreign policy.” (p-2) and “Japan is often considered a one-dimensional power. Different from the United States, which possesses a wide range of resources, Japan’s main instrument of foreign policy is economic power.”(p-3). This is a good example for undeveloped and developing economy nations to study the impacts and limitations of economic leverage.
As United State of America is supper economy nation in North America continent then Japan is another one in Asia, considering a strong work ethic with a high technology industrial nation but a very lower budget for its defense business. Japan is namely second place in technological powerful economy and a second largest GDP, reaches $4.3 trillion in 2007, about 2.7% GDP growth after US. After World War II Japan has been supported and influenced by U.S. policies, They all focus on economic growth, the most strongest market been invading by Japan Auto industry, the GDP has been reached 10 percent annually growth for the three decades. It was successfully in energy saving policy therefore technological electronics products and automobiles become very competitive internationally. This is a successful story in business forever to study. Japan Economy is beginning slower in 1990s with the average 1.7 % after the effects of financial crisis and assets price bubble, compared other industrial nations like Germany and USA. Real GDP grew as an average 1.5% annually from 1991 to 1999 comparing to growth in 1980s of about 4% per year. In the early 2001, the Japan government has economic reform in the relying of slow demand from US, and other Asia economies. From 2003 to 2007, its economic growth in GDP average 2.0 annually, under the pressures from other economic dragons, Japan as U.S still remains as a major economic powering the globe with among World’s largest and technological advance producers of automobiles and high tech merchandises and other electronic equipments. Japanese government make its efforts to continue the economy recovery yearly with a lower unemployment rate from 5.3% in 2003 to 4 % in 2007, lower population growth rate, and highest gross national savings with an average 27% yearly from 2003 to 2007 compared to US. 13%, an average for its national saving and U.S unemployment average rate 5.2 % yearly from 2003 to 2007.
Unlikely USA and China, Japan also has an efficient energy reform, by diversify its energy resources, lowering its dependence on imported oil from 75% in 1970s to 57% at present and having high technologies for automobiles with less gasoline driver and new introduction of Hybrid vehicles. It has a current account balance, $212.8 billion in 2007 comparing to U.S negative balance, -$738.6 billion, China $360.7 billion and Brazil 3.5 billion .Japan focus on export commodities such as transport equipments, motor vehicles, semiconductors and other high tech electronics. Their key partners for trade are USA with 20,4 %, China 15.3% South Korea 7.6 %, Taiwan 6.3 % and Hong Kong 5.4%. Although Government executes a series of reforms and its effort to revise economic growth but there are little results for its success.
Exchange Rate System and Flawless Policies
In fact, the Japan productivity is lower 30 percent than American labors. Meanwhile, Japan industrial fields have faced a lot of competitions from China in product quality and quantity and competitive price. Beside Japanese economy has to paid with a high cost of energy and a rise on cost of goods transportation in which will still gone on to affected negative exchange rate. Not like US Federal Reserve, most of the Japanese financial activities has been under the monitor and administrated by the Japanese Ministry of Finance. The Japanese government directly has been controlled all foreign investment and trading before 1949s. There are also a multiple exchange rates at that time and it has been run under the market economic policy. In the mid 1949 Japan decide to switch its plural exchange rate regime to a single exchange rate regime. This change continues its activity until 1960s under that progressed trade liberation. From 1960 to 1971 Japan has applied fixed exchange rate regime to rely US dollar but in the early 1971 Japanese government was beginning use the flexible exchange rate regime to allow its currency (Yen) to be floated above its fluctuation ceiling and an effective rate. In that time, the US dollar has lost its value and continuing devaluation, so the main cause to push Japan’ establishing and controlling exchange rates under the flexible exchange rate system as a basis. This is an open door for the freely floating of the effective rate of Japan currency. Japan begins to determine the exchange rate upon the supply and demand conditions. Likely responsibilities as US Federal Reserve, Ministry of Japanese Finance and authorized Central banks will intervene in the currency market when its currency has been fluctuated disorderly. At present, Japan flexible exchange rate regime has not been changed much lately.
The current economy and the outlook for the next many years to come
Japan, although population density is big, par excellence live in metropolitan area but Japans has a loftiness standard of living. Japan industry is at the second ranking in the world, although it has been considered as a very poor country about natural resources. Most of productions are being depended on imported material, as 90% of energy from foreign imported oil. Japanese economically accomplishments are in centralized of invented production phyla. At present, The Japanese overall economy has not been changing much upon the national real GDP in 2007 and 2008 at 2.1%. The inflation has also keep low increasing at 2.0% in August 2008. The Japanese export is heading slowing down in June 2008 at 1.7% while import of record level at 16.2% rises, by impacts from falling World economy, the American financial crisis and the high demand oil and price that affected disadvantageous to this power of Asiatic most largest economy. Japanese trade surplus has also been decreased in June 2008 $1.28 billion or 89% in the same period of the last year, 2007. According to the BBC news, “Japan's trade surplus shrank by more than expected in July, due to weaker US demand and an increase in oil imports. The surplus fell to 91.15bn yen ($830.5m; £444.2m), down 86.6% from the same period a year earlier.” (P-1) The difference among US, China, Brazil are facing with a higher inflation than Japan has a lowest inflation of status where Japanese and its enterprises at this sunrise country are waiting inflation to come back, with more than a decade under the sustained deflation. Many past years, Japanese economy was in average at 1.0% deflation because Japanese consumers are limited in spending of automobile, consumed goods and so on but more on saving plans and home cash reserves. Moreover, the high cost of energy along with the rising expenditure prices to cut back their expenses to cause Japan‘s GDP and CPI index to increase negligible. Firstly, it should stimulate its economy by spending packages where Japan will always hope inflation index has boost omen diligently. Secondly, to remains as the competitive and largest economy ranking in Asia, Japan should consider a labor reform by building a powerful manpower resource with a high labor skill and knowledge to rely the better productivity. Japan can also open their door for foreign labors. Looking at US economy’s productivity still remains as highest level. Although Japan should be considered as good stage as maintaining its industrial base and have a better in national saving plan and a huge capital resources and reserves those can continues to show its strong economic outlook. But Japan also should pay attention to its declines in the population growth that is a threat to the long term rapid economic growth. In additional, the higher percentage rate in elders than younger generation will give a pressure on the pension system and given short on its workforce.
According to the Yuichi,”The life expectancy in Japan in the longest in the world. In 1995, average life expectancy at birth was 76 years for male and 82 years for females.”(P-3)

Wednesday, November 5, 2008

Great Day for America!


In the heart of millions americans today, some feel very upset and others are very happy about our historic presidential election. But there is one thing, we all must agree and proud of the wonderful nation that we are living in and working under a great constitution " All men are created equal." This day will go down in American history. We are one nation,we must put our differences aside and together we will rebuild our nation. No matter what happended today and in the past, we must look forward to the future of our next gennerations. We are facing a series of challegenings ahead: economic crisis, education, healthcare, security, beyond those we also need to restore the American reputation all over the World as well as to bring a fresh air and confidence back to Americans.
Again, we wish all the best to our new president and administration for the comming days.