Brazil: Leading the Brics

Topics: Developing country, Developed country, Emerging markets Pages: 3 (1053 words) Published: December 19, 2011
Brazil Capitalism
The primary question that Brazil faces as it moves into the 21st century is whether the Brazilian style of capitalism, which harnessed their economy towards growth as a developing economy, is sufficient to drive them as a developed country. Averaging 3.8% GDP growth over the last decade, this transition seems inevitable; Brazil has shifted from an agricultural giant to a country in which 90% of the population works in the industrial and service sectors. However, as they make this conversion, they must examine their economic policies to ensure that they are still applicable and advantageous. For example, Brazil must keep promoting their industrial policies. Brazil may fall back into a commodity-driven economy if raw materials continue to be a focus of their free trade efforts. Petroleum production nearly doubled from 2000-2010, from 1222 barrels per day to 2152 barrels per day. Overspecialization is probable and undesirable in order for the economy to not fall backwards into growing away from secondary and tertiary sector growth. Brazil has historically fought for even playing fields. In particular, for developed nations to lower tariffs and reduce subsidies on agricultural goods, thereby allowing developing nations and emerging markets the chance to compete in these arenas. Brazil was at the forefront of these emerging markets, spearheading the creation of the G-21 in the WTO. However, as Brazil became more prosperous, and the real appreciated, support within Brazil for Doha was weakening. This is emblematic of Brazil’s dilemma. How can it become a developed country with policies that are still grounded in its status as a developing nation? How can it advocate today for policies that will disadvantage it tomorrow? Brazil spent a lot of time, energy, and money in the 2000s ensuring that they were not dependent on foreign oil; what happens when they’re a developed country? Brazil has also seen a shift towards even playing fields in the area of...
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