Brazil Will Eventually Become Economic Powerhouse Essay Example for Free

Brazil Will Eventually Become Economic Powerhouse EssayCurrently, Brazil with its creation hitting 186. 6 million has the ninth largest economy in the world (Jaeger, p. 2). Since the beginning of the 21st century the country has been enjoying a well-established economic stableness, low inflation, senior high school productivity rates and developing macro-economic infrastructure. Currently, Brazilian economic indexes are gradually improving in their dynamics, though some of them still remain on the ordinary level for Latin American region.In particular, GDP growth in 2006 was hardly over 3% (Estevao). Since the middle of the last century Brazil was judge to develop shortly into the worlds abutting economic proponent. However due to two-decade long economic stag nation and financial crises in the mid-1980s Brazil has disordered its positions and fell short of expectations regarding its economic development, particularly in comparison with rapidly progressing economies of t he countries in Asian region, such as China, Taiwan or South Korea, etc. (Adrogue, Cerisola Gelos, p. 3).Nevertheless, in the 1990s a series of well-planned governmental policies were implemented and Brazilian economy went through a number of structural economic changes, which allowed achieving certain stability, especially on macro-economic level. Therefore, countrys inflation was taken under control, external debt was considerably decreased, and numerous measures directed on reformation of financial infrastructure, liberalization of trade, achieving footing stability and stimulating general economic growth were undertaken (Jaeger, p. 5-6).This way the country managed to improve its international image and gain a reputation of trustworthy nation again. As a result, since recent times Brazil has been receiving a lot of private investments. Foreign investors are attracted by high return of their funds and relatively low risks. Such significant factors, as good demographic situati on in the country, high interest rates, stable political situation and prudent governmental policies regarding overseas trade, created absolutely favorable environment for foreign businessmen, who intend to invest their funds and start their businesses in Brazil.Good investment climate and economic stability are not the only factors determining future rise of Brazilian economy. In addition to that, Brazil is very rich with various natural resources. Those are, number 1 of all, huge territories of arable lands available for cultivation of a great variety of crops. Moreover, there are large mineral and plant resources including iron, copper and even gold, which contribute not been even properly explored yet. That is why there are great opportunities for different industrial and agricultural companies in Brazil.Undoubtedly, there are some problems which shoot immediate attention and solution in order to fasten economic development and achieve high levels of social wellbeing. Those i nclude corrupted educational governing body and problems with human capital, insufficient financial and fiscal systems, poverty and income disparities, etc. Certainly, such reforms are hard to implement within some short period of time, therefore, positivistic transformations are expected to become effective gradually.Nevertheless, modern Brazil can be called the country of the future with its huge national market, cheap working power, teemingness of natural resources, and many other factors determining a large long-term economic potential of the country (Jaeger, p. 2). Great economic stability and openness, steady profit in manufacturing and consumption, establishment of new international trade connections and other fundamentals will definitely contribute greatly to future prosperity and economic power of the country. Works CitedEstevao, Marcello. Brazil Seeks to Unlock Economic Potential. International financial Fund. 26 Feb. 2007. 25 Nov. 2007 http//www. imf. org/external/pu bs/ft/survey/so/2007/CAR083A. htm. Jaeger, Marcus. Brazil Economic scenarios for the next 15 years. Ed. Maria L. Lanzeni. Deutsche Bank Research. Frankfurt Am Main Deutsche Bank AG, 2006 Adrogue, Richardo, Martin Cerisola and Gaston Gelos. Brazils Long-Term Growth Performance -Trying to Explain the Puzzle. International Monetary Fund, unpublished manuscript, December 2006.