Brazil is also facing several economic challenges and at the same time has made great strides in a few economic areas. One challenge that faces Brazil today is that the poorest one-fifth of Brazil's population makes up only 2.4% of the national income (Brazil County Brief). Brazil is only trailing South Africa in income inequality while one-fifth of the population lives on less than two-dollars per day. While primary school attendance is almost 100% pre-school and college attendance is very low creating an uneducated work force, low-income workforce. A few of the other economic challenges are creating new jobs, continuing agricultural growth and developing the Amazon, infrastructure, healthcare, and education. On a positive note Brazil is on the right track for accomplishing economic stability. Brazil is also challenging HIV/AIDS by imposing a strategy that encourages education and gives sick individuals access to retroviral medication. Brazil is also overcoming their domestic energy crisis by creating more exports and loosening trade barriers. Records show that since 2002 Brazil has made several changes to the economy that has helped to create economic equality.
"Some of the key industries in Brazil are aircraft engine production, automotive manufacturing and assembly, hydroelectric power, shoes, a variety of agricultural products and minerals, among many others. Brazil is ranked the ninth largest market within the world economy, making it a prime destination for many business investors. Since the 1994 Real Plan and a trend toward market openness, Brazil has become a more stable and profitable business opportunity if approached with the proper preparation and business plan." (Offshore Yellow Pages).
Brazil has "great potential profits, inflation is falling, and economists predict five to seven years of steady GDP growth. Possessing large and well-developed agricultural, mining, manufacturing, and service sectors Brazil's economy outweighs that of all other South American countries and is expanding its presence in world markets. The maintenance of large current account deficits via capital account surpluses became problematic as investors became more risk adverse to emerging market exposure as a consequence of the Asian financial crisis in 1997 and the Russian bond default in August 1998. In January 1999, the Brazilian Central Bank announced that the real would no longer be pegged to the US dollar. This devaluation helped moderate the downturn in economic growth in 1999 that investors had expressed concerns about over the summer of 1998." (Offshore Yellow Pages).
Compared to other South American countries, Brazil's political scenario has been relatively stable and is dominated by seven major political parties. The Government has been implementing numerous policies that promote equal economic growth by ensuring that rural development is at par with progress in other areas of the country. The Government has attracted greater foreign investment by signing several trade agreements and it has also been implementing various policies to technologically enhance the country. However Brazilian legislators are far from calling themselves effective in work. Brazilian economy still has non-satisfactory fluctuation, more than 40% of the population lives in total poverty, infant mortality is high, transportation and educational system have big issues to be solved, and although President Lula has promised to bring the issues of rampant red tape, corruption and organized crime under controle, crime and corruption are a huge problem (BRAZIL: Economic Policy Analysis).
Brazil wants to be recognized as an international political force and is therefore pushing for permanent membership of the UN Security Council. Brazil was the driving force behind the creation of MERCOSUR, a regional trade agreement, and is its dominant member. The country has been especially active in recent WTO discussions, leading a contingent of developing nations against the suggested policy changes of the G8.
September 11, 2001, have brought forth, in Brazil as elsewhere, the realization that some terrorist groups have become global in their methods and scope. Cooperation within the international community is required in order to curb effectively that menace. Over the past few years, since September 11, 2001 Brazil has intensified its contribution to international efforts to fight terrorism. The Brazilian Government developed a fruitful relationship with competent institutions especially but not exclusively, within the UN system and with our friends and partners in the international community, including the United States. (The Brazilian Experience in the Fight Against Terrorism)
1) Brazil County Brief.
2) Offshore Yellow Pages. http://www.taxhaven-opm.org/opm/ver2.asp?cod=285&canal=Brazil
3) BRAZIL: Economic Policy Analysis. http://www.mkeever.com/brazil.html
4) The Brazilian Experience in the Fight Against Terrorism.
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