Factors that have enabled Brazil to become a rapidly developing economy.
INTRODUCTION
Brazil is the largest country in the South American continent, and it is amongst the 12 largest economies of the world. It possesses vast natural resources and offers remarkable ecological diversity, majority of its 192 million inhabitants now live in urban areas (Griffiths, A and Wall, S. p 609). The country also possesses a diversified industrial and agricultural sector and In 2001, the contribution of the agricultural sector to GDP was 9.3%, while that for industry and services was 33.9% and 56.8% respectively (Pereira, L 2004).
At around the same time, Jim O’Neill, the head of global economic research at Goldman Sachs, coined the acronym “BRICs” to refer to Brazil, Russia, India, and China, the emerging market economies (EMEs) he thought would lead world economic growth for the next fifty years (Griffiths, A and Wall, S. p 594).
This essay aims to identify and critically evaluate the key economic, political and technological factors and conditions that have enabled Brazil to become a rapidly developing economy.
According to Antoine W. Van Agtmael (1981) the term emerging markets can be broadly defined as nations in the process of rapid growth and industrialization using economic liberalization as their primary engine of growth. Often times, these nations are transitioning to an open market economy with a growing working age population.
1. POLITICAL BACKGROUND
In order to understand why brazil is an “emerging market” we must first look at what went wrong, why it needed changing and what spurred the change. Brazil’s economic story is long and complex, after achieving its independence from Portugal in 1822 it had the lowest GDP per capita of any new world colony and It wasn’t until the early twentieth century when the economy began to show signs of life.
From 1913 - 1980, Brazil grew faster than any other country in the western hemisphere thanks to high commodity prices and industrial production spurred by
Brazil is the largest country in the South American continent, and it is amongst the 12 largest economies of the world. It possesses vast natural resources and offers remarkable ecological diversity, majority of its 192 million inhabitants now live in urban areas (Griffiths, A and Wall, S. p 609). The country also possesses a diversified industrial and agricultural sector and In 2001, the contribution of the agricultural sector to GDP was 9.3%, while that for industry and services was 33.9% and 56.8% respectively (Pereira, L 2004).
At around the same time, Jim O’Neill, the head of global economic research at Goldman Sachs, coined the acronym “BRICs” to refer to Brazil, Russia, India, and China, the emerging market economies (EMEs) he thought would lead world economic growth for the next fifty years (Griffiths, A and Wall, S. p 594).
This essay aims to identify and critically evaluate the key economic, political and technological factors and conditions that have enabled Brazil to become a rapidly developing economy.
According to Antoine W. Van Agtmael (1981) the term emerging markets can be broadly defined as nations in the process of rapid growth and industrialization using economic liberalization as their primary engine of growth. Often times, these nations are transitioning to an open market economy with a growing working age population.
1. POLITICAL BACKGROUND
In order to understand why brazil is an “emerging market” we must first look at what went wrong, why it needed changing and what spurred the change. Brazil’s economic story is long and complex, after achieving its independence from Portugal in 1822 it had the lowest GDP per capita of any new world colony and It wasn’t until the early twentieth century when the economy began to show signs of life.
From 1913 - 1980, Brazil grew faster than any other country in the western hemisphere thanks to high commodity prices and industrial production spurred by
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