Globalization in Brazil
GLOBALIZATION IN BRAZIL
Geographies of Globalization – GEO1-3802 30th June 2011
Introduction
Brazil is the fifth largest country in the world, population and geographical wise. The country, however, is still a developing country. Being plagued with several economic crises, and astronomically high inflation rates the economic situation of Brazil over the years has been far from good. As economic globalization is becoming a more and more important phenomenon in the economic world, we are going to look at economic globalization in Brazil, and especially on the effects it has had, and still has on the country. We are going to do this by first explaining the many different political and economic reformations that have happened in the country in the last 26 years. We divided these 26 years over the period 1985 to 2002 and the period 2003 until now. Why we do this will be explained in the corresponding sections. Following these two sections will be a short summary of the different reformations made in the 2 covered periods that have an influence on globalization. The next section will cover the current economic state of Brazil, and will compare it to the past 26 years. Where necessary we explain what and why things happened that can be seen in the provided graphs and data. The section thereafter will combine the previous two sections by explaining the effect globalization has had on the country, and especially different regions within the country. We do this by looking at the concentration of economic activity within the country and by looking at the income distribution within the country. Finally we will summarize and thereby answer our main question: What was and still is the effect of economic globalization on Brazil?
Brazil from 1985 to 2002
The years covered in this chapter are characterized by inflation, and the economic stabilization plans aimed at reducing it. The period has had several presidents, and even more economic stabilization plans. Some
Geographies of Globalization – GEO1-3802 30th June 2011
Introduction
Brazil is the fifth largest country in the world, population and geographical wise. The country, however, is still a developing country. Being plagued with several economic crises, and astronomically high inflation rates the economic situation of Brazil over the years has been far from good. As economic globalization is becoming a more and more important phenomenon in the economic world, we are going to look at economic globalization in Brazil, and especially on the effects it has had, and still has on the country. We are going to do this by first explaining the many different political and economic reformations that have happened in the country in the last 26 years. We divided these 26 years over the period 1985 to 2002 and the period 2003 until now. Why we do this will be explained in the corresponding sections. Following these two sections will be a short summary of the different reformations made in the 2 covered periods that have an influence on globalization. The next section will cover the current economic state of Brazil, and will compare it to the past 26 years. Where necessary we explain what and why things happened that can be seen in the provided graphs and data. The section thereafter will combine the previous two sections by explaining the effect globalization has had on the country, and especially different regions within the country. We do this by looking at the concentration of economic activity within the country and by looking at the income distribution within the country. Finally we will summarize and thereby answer our main question: What was and still is the effect of economic globalization on Brazil?
Brazil from 1985 to 2002
The years covered in this chapter are characterized by inflation, and the economic stabilization plans aimed at reducing it. The period has had several presidents, and even more economic stabilization plans. Some
References: Blum, E. & Neitzke, P., (2004). FavelaMetropolis, Berichte Und Projekte Aus Rio de Janeiro Und São Paulo. Retrieved June 24, 2011-06-30 Brown, R., (2008). Brazil’s footwear cluster – Sinos Valley. Investment & Innovation Forum. Retrieved June 29, 2011 http://investmentinnovation.wordpress.com/2008/04/10/brazils-footwearcluster-sinos-valley/ Facchini, G. & Ferreira, P. C., (2004). Trade Libaralization and Industrial Concentration: Evidence from Brazil. Retrieved June 30, 2011 from http://bibliotecadigital.fgv.br/dspace/bitstream/handle/10438/414/1555.p df?sequence=1 Harris, J., (2005). Third World powers: China, India and Brazil. Race & Class, Vol. 46 (7). London, SAGE Publications. Retrieved June 28, 2011 from http://rac.sagepub.com/content/46/3/7 Hornberger, K., (2011). Brazil’s new FDI frontier – North and Northeast regions. World Bank Blogs. Retrieved June 29, 2011, from http://blogs.worldbank.org/psd/brazil-snew-fdi-frontier-north-and-northeast-regions Horridge, J. M. & de Souza Ferreira Filho, J. B., (2004). Economic Integration, Poverty and Regional Inequality in Brazil. Retrieved June 28, 2011. Luiz Cervo, A., (2010, July). Brazil’s Rise on the International Scene: Brazil and the World. Revista Brasileira de Política Internacional, Vol. 53. pp 7-24. Retrieved June 23, 2011, from Ebsco Host Academic Search Elite. de Onis, J., (2008, November/December). Brazil 's Big Moment - A South American Giant Wakes Up. Foreign Affairs, Vol. 87 (6). pp 110-122. Retrieved June 26, 2011, from Hein Online. Paulani, L. M., & Prates, D. M., (2007). The Financial Globalization of Brazil under Lula., Monthly Review: An Independent Socialist Magazine, Vol. 58 (9). pp 32-38. Retrieved June 27, 2011, from Ebsco Host Academic Search Elite. Willmore, L., (1986). Foreign Control and Concentration in Brazilian Industry. XIV Encontro Nacional de Economia. pp. 439-461. Other external sources: http://www.npr.org/blogs/money/2010/10/04/130329523/how-fakemoney-saved-brazil http://internationalbusiness.wikia.com/wiki/Brazil 's_Income_Distribution http://www.wazamar.org/Nederlanders-in-Brazilie/a-braziliealg.htm#Economie http://www.econ.fea.usp.br/nereus/eae0503_1_2006/hadch199.pdf www.worldbank.org