Brazil And The Challenge Of Economic Reform

In the 1990s Brazil launched a comprehensive economic liberalization program. It lifted its trade barriers, adopted new market-oriented regulations, opened up its capital market and abandoned earlier efforts to internalize production and to build vertically integrated systems across several sectors of the economy. In spite of the visible gap that separated the top global giants from the large local enterprises, Brazilian companies seemed to be willing to join in an economic liberalization process that was bound to expose them to unprecedented levels of competition, bring about a high degree of uncertainty and, in many cases, ultimately put their own businesses at risk. Big Business and Brazil’s Economic Reforms examines the most emblematic aspect of the Brazilian economic reforms, the support from parts of the local entrepreneurial class for the opening up of the economy. It investigates the reasons why Brazil carried out these economic reforms in the 1990s, the transition process and the impact of the opening up of the economy on some of its most important sectors, such as the aerospace, auto and auto parts, food processing, oil and petrochemicals, ethanol, steel, telecoms and telecom equipment industries. This book offers an in-depth analysis of Brazil’s distinctive development paths, from the Latin American economic thinking of the early stages of its industrialization to the neo-liberal stance of the present day. It sheds new light on one of the main challenges facing all the large developing economies in their move to become more integrated into the world economy, the fostering of large enterprises, and is a great resource for students and researchers interested in global business, development economics, and Latin American economic history.

Brazil is the world's eighth largest economy. After almost a decade of strong growth (2002-2013), Brazil entered into the worst recession in its history in 2015 (-3.8% of GDP) and 2016 (-3.6%). This economic crisis was due to the fall of commodity prices and a drop in consumption and in investment. However, the economy recovered in 2017 and the GDP recorded a 1% progression. Budgetary adjustment and favorable economic conditions have fostered the recovery. In 2018, the Brazilian economy confirmed its rebound and the country's GDP grew 1.4%. The economy is expected to keep growing in 2019, reaching an estimated annual GDP growth rate of 2.4% (IMF).In 2018, inflation grew slightly, reaching 3.7% (compared to 3.4% the previous year) and is expected to increase to 4.2% in 2019. Fiscal consolidation is the government's main objective, but even though the fiscal deficit is expected to narrow in 2019, the President's promise to reduce the imbalance to zero this year is not feasible. The government budget balance registered in 2018 a deficit of 7.3% which is expected to be maintained at the similar level in 2019 and 2020. The government will also focus on social security reform, which was announced by the previous administration but failed to pass the Congress. If the current government fails to address the pension system reform, it could jeopardize the stronger economic momentum. However, the Congress is still far from passing the reform plans. The investigation of the Operation "Car Wash", following the worldwide corruption scandal involving Petrobras (the national oil company) has led to the conviction of several members of the Workers' Party (PT) and the impeachment of the then president Dilma Rousseff in 2016, replaced by Michel Temer.

Includes bibliographical references

Brazil is a country of extreme inequalities, one of the most important of which is the acute concentration of rural land ownership. In recent decades, however, poor landless workers have mounted a major challenge to this state of affairs. A broad grassroots social movement led by the Movement of Landless Rural Workers (MST) has mobilized hundreds of thousands of families to pressure authorities for land reform through mass protest. This book explores the evolution of the landless movement from its birth during the twilight years of Brazil&’s military dictatorship through the first government of Luiz In&ácio Lula da Silva. It uses this case to test a number of major theoretical perspectives on social movements and engages in a critical dialogue with both contemporary political opportunity theory and Mancur Olson&’s classic economic theory of collective action. Ondetti seeks to explain the major moments of change in the landless movement's growth trajectory: its initial emergence in the late 1970s and early 80s, its rapid takeoff in the mid-1990s, its acute but ultimately temporary crisis in the early 2000s, and its resurgence during Lula's first term in office. He finds strong support for the influential, but much-criticized political opportunity perspective. At the same time, however, he underscores some of the problems with how political opportunity has been conceptualized in the past. The book also seeks to shed light on the anomalous fact that the landless movement continued to expand in the decade following the restoration of Brazilian democracy in 1985 despite the general trend toward social-movement decline. His argument, which highlights the unusual structure of incentives involved in the struggle for land in Brazil, casts doubt on a key assumption underlying Olson's theory.

In Brazil, the confluence of strong global demand for the country's major products, global successes for its major corporations, and steady results from its economic policies is building confidence and even reviving dreams of grandeza—the greatness that has proven elusive in the past. Even as the current economic crisis tempers expectations of the future, the trends identified in this book suggest that Brazil will continue its path toward becoming a leading economic power in the future. Once seen as an economic backwater, Brazil now occupies key niches in energy, agriculture, service industries, and even high technology. Yet Latin America's largest nation still struggles with endemic inequality issues and deep-seated ambivalence toward global economic integration. Scholars and policy practitioners from Brazil, the United States, and Europe recently gathered to investigate the present state and likely future of the Brazilian economy. This important volume is the timely result. In Brazil as an Economic Superpower? international authorities focus on five key topics: agribusiness, energy, trade, social investment, and multinational corporations. Their analyses and expertise provide not only a unique and authoritative picture of the Brazilian economy but also a useful lens through which to view the changing global economy as a whole.

July 12, 2011-Over the course of a generation, Brazil has emerged as both a driver of growth in South America and as an active force in world politics. A new Council on Foreign Relations (CFR)-sponsored Independent Task Force report asserts "that it is in the interest of the United States to understand Brazil as a complex international actor whose influence on the defining global issues of the day is only likely to increase."Brazil currently ranks as the world's fifth-largest landmass, fifth-largest population, and expects to soon be ranked the fifth largest economy. The report, Global Brazil and U.S.-Brazil Relations, recommends that "U.S. policymakers recognize Brazil's standing as a global actor, treat its emergence as an opportunity for the United States, and work with Brazil to develop complementary policies."The Task Force is chaired by former secretary of energy Samuel W. Bodman and former president of the World Bank James D. Wolfensohn, and directed by CFR Senior Fellow and Director for Latin America Studies, and Director of the Global Brazil Initiative Julia E. Sweig.Recognizing Brazil's global role, the report recommends that the Obama administration now fully endorse the country's bid for a seat as a permanent member of the United Nations Security Council (UNSC). It argues that "a formal endorsement from the United States for Brazil would go far to overcome lingering suspicion within the Brazilian government that the U.S. commitment to a mature relationship between equals is largely rhetorical."Domestically, Brazil's "inclusive growth has translated into a significant reduction of inequality, an expansion of the middle class, and a vibrant economy, all framed within a democratic context." Consequently, Brazil has been able to use its economic bona fides to leverage a stronger position in the international, commercial, and diplomatic arena.The report stresses the importance of regular communication between the presidents of both countries. "Cooperation between the United States and Brazil holds too much promise for miscommunication or inevitable disagreements to stand in the way of potential gains." A mature, working relationship means that "the United States and Brazil can help each other advance mutual interests even without wholesale policy agreements between the two," notes the report.The Task Force further recommends that- the U.S. Congress "include an elimination of the ethanol tariff in any bill regarding reform to the ethanol and biofuel tax credit regime."- the United States "take the first step to waive visa requirements for Brazilians by immediately reviewing Brazil's criteria for participation in the Visa Waiver Program."- the U.S. State Department create an Office for Brazilian Affairs and the National Security Council (NSC) centralize its efforts under a NSC director for Brazil in order to better coordinate the current decentralized U.S. policy.The bipartisan Task Force includes thirty distinguished experts on Brazil who represent a range of perspectives and backgrounds. The report includes a number of additional views by Task Force members, including one that notes, "We believe that a more gradual approach [regarding Brazil's inclusion as a full UNSC member] would likely have more success in navigating the diplomatic complexities presented by U.S. support for Brazil." Another view asserts, "If the United States supports, as the Obama administration has said it does, leadership structures in international institutions that are more reflective of international realities, it must support without qualifications Brazil's candidacy [for the UNSC]."

Bringing the analysis of Brazil's economic performance up to date, Baer's classic text remains the only book in English to provide a thorough historical, statistical, and institutional description of the Brazilian economy. After touching on such issues as Brazil's exporting economy prior to the 1930s, the impact of external shocks, and the historical struggle to bring inflation under control, the book turns to contemporary issues. The changing nature of Brazil's international trading and investment links, the past role of state enterprises and the process of privatization, the agricultural sector, environmental issues, and the economics of the health delivery system are thoroughly examined. Offering a full statistical and institutional description of Brazil's economy, this book includes a review of the major controversies surrounding such issues as the high degree of concentration in the country's income distribution, the causes of inflation, the impact of various stabilization programs, and the influences of the state in the economy. Scholars, students, international institutions dealing with development, and corporate officers dealing with Latin America will welcome this up-to-date, definitive book on one of the world's largest economies.