current economic systems
- Moderately free markets
- 7th largest economy in the world
- Expected to become one of the top 5 economies
- Their scientific and technological development is attractive to foreign direct investment
- Been very pro-business
- Worked to boost economy and cut spending
Brazil is rich in natural resources and is one of the world's top producers!
History
- Always been more market like
- Experienced huge economic growth in the late 1900s, along with demographic growth and mass immigration
- From 1950-2005, population went from 51 million to 187 million
Quick Sector Breakdown:
- Service: 67.0%
- Industrial: 27.5%
- Agriculture: 5.5%
Agriculture Sector
- Very dynamic
- Highly productive
- Supports trade surpluses
- Made efficient by a green revolution
- At the expense of the Amazon
- Pronaf: guarantees financing for equipment and cultivation; encourages use of new technology
- Special line of credit available for women and young farmers
Land Reform Program- country's objective is to provide suitable living and working conditions for over one million families who live in areas allotted by the state
Industrial Sector
- 2nd biggest of the Americas
- Main product: automobiles
- Multinationals able to invest
Service Sector
- A lot of financial services
- BM&FBOVESPA: one of the largest stock exchanges in the worl
Largest Companies
- Petrobras: Oil and Gas
- Vale: Mining
- Itau Unibanco: Banking
- Ambev: Beverage
- Banco Bradesco: Banking
- Banco do Brasil: Banking
- OGX: Oil and Gas
Oil!/Petroleum/Power
- Working to reduce imported petroleum; used to account for 70% of country's oil needs
- Became self-sufficient in 2006-07
- On of worlds leading producers of hydroelectric power; provides for 90% of nation's electricity
- Plans to increase number of nuclear plants
Areas of Reform
- Social Security
- Tax system
- Law of Fiscal Responsibility: controls public expenditure by the executive branches at the different levels
- Investments made towards administration efficiency
- Policies created encourage exports, industry, and trade
- Reduced Manufactured products tax
Have they worked?
- Reduced its vulnerability
- Doesn't import the oil it consumes
- Halved its domestic debt
- Exports have grown
- Exchange rate doesn't pressure the industrial sector
- Positive balance in accounts that measure exports/imports, interest payments, services, and overseas payments