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.