Brazil Rising as a Global Power Essay

1592 WordsFeb 8, 20137 Pages
Many natives claim that god is Brazilian because the nation isn't located on any fault lines so it isn't vulnerable to earthquakes, all Brazilian volcanos have been extinct for several million years, also their hasn’t ever been a single recorded hurricane.(Earthquakes in Brazil, 2011) But it is also apparent that "god" blessed Brazil with seemingly endless resources to develop it into one of the worlds strongest economies. Brazil just passed the United Kingdom to become the sixth largest economy in the world. Many economists already consider Brazil to be an economic super power, but if you don’t you will by the end of the decade. Brazil has vast farm lands unmatched by any other nation. Under the surface exists vast deposits of iron ore and precious metals that are still being discovered. Off the coast exist vast amounts of hydo-carbons that are just now being tapped into. On top of all of these highly exportable commodities Brazil also has a booming middle class, eager to support their economy. In order to understand the current situation of the Brazilian economy you have to look at what happened in it’s past that steered it in the direction it is going today. In 1964 the military leadership introduced widespread economic reforms in an effort to transform the Brazilian economy from one of inflation and debt to that of a diversified capitalist market economy. The reforms introduced incentives for investment and promoted exports. The result was a sustained period of growth, averaging around 11%, for Brazil’s economy between 1968 and 1973. When the oil shock hit the debt started to run away which led growth until the early 1990s but at the cost of rising inflation, which remained at around 100% throughout the early 1980s, and grew to 1,000% in the mid-1980s before reaching 5,000% in 1993. In 1995 the “Plano Real” was introduced. The plan introduced a new

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