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Brazil Under Lula: Off the Yellow Bric Road

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Brazil Under Lula: Off the Yellow Bric Road
Question 1:

1. Situation Analysis
Brazil is being considered as a growing economy. In fact the country, one of the BRIC nations is seen by analyst of Goldman Sachs as one of the five nations that will be at the top of all nations with regard to a country`s GDP (The Goldman Sachs Group Inc., 2007). To understand Brazil`s current situation and how the country may be able to grow out of this position as a global player in the near future aiming a better globalization of the country by the year 2050, one has to see Brazil within a bigger frame. Within this frame, actions taken have to be integrated into the five obstacles Brazil currently faces.

1.1. The five obstacles Brazil has to overcome (Brazil Cost)
There are five obstacles according to McKinsey that Brazil has to pay attention to in order to grow in the future as a global player. These obstacles are a reduction of size and importance for the informal sector, to correct deficiencies of macroeconomic nature, which are for example the high real interest rate and a high government debt-to-GDP ratio. Further does McKinsey advice the Brazilian government to reduce the excessive bureaucratic regulation and to improve the quality of its public services, which are for example the Brazilian education, justice and security. Another point on the agenda for future growth of Brazil should be the development of the country`s infrastructure.
These five areas of improvement, which run under the name ‘Brazil cost’, are a good start for Brazil to consider future plans and further to consider in how actions taken so far fit to the aim of being a country of globalization. These actions taken by the Lula government will be analyzed within the context of the country`s future growth.

1.2. Actions taken by the Lula government
Being aware of the obstacles Brazil has to fight, it was the aim for the Lula government to initially reduce the poverty and inequality Brazilian citizens were facing. The outcome of a thorough action



References: Naim, M. (2009, February 16). Think Again: Globalization. Retrieved September 18, 2012, from Foreign Policy: http://www.foreignpolicy.com/articles/2009/02/16/think_again_globalization The Goldman Sachs Group Inc. (2007). BRICs and Beyond. New York City: Goldman Sachs Global Economics Group.

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