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Development Essay - BRAZIL

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Development Essay BRAZIL Brazil is a country, which has great potential for development. Even though it has developed greatly, it still faces many problems. For example, even though Sao Paulo is one of the most heavily urbanized cities, the inequality of income is very evident. Brazil is an industrial power with the largest population Latin America and the Caribbean. Brazil has taken great steps to greatly improve its situation and come out of the shadow of several other industrial powers. It is quite evident by the way that Brazil is developing. Brazil is clearly a nation to be reckoned with. Brazil is a country that has a history of conquest. It was under the rule of Portugal for three centuries. A Portuguese navigator, Pedro Alvares Cabral, first discovered Brazil in 1500. Soon after, the first settlers started arriving in Brazil. They encountered natives who did not know the language and they just worked the land. Many Portuguese migrated to Brazil in order to escape the poverty that plagued them. The migrated so that they could change their way of life and find jobs. This part of South America soon evolved into a center for commerce and wealth for the landowners. But this was not without consequence as this development made for the import of slaves from Africa to work in the many plantations. ...read more.


By the end of last year, Brazil's privatization plan, which included the sale of steel and telecommunications firms, had generated proceeds of more than $90 billion. Despite fiscal austerity, Brazil's government has recognized the need to invest more in health and education to balance out social inequity. Economic stabilization has significantly enhanced Brazil's growth prospects. Brazil's trade has almost doubled since 1990. U.S investment has increased from less than $19 billion to approximately $35 billion through 2000. The U.S is the largest foreign investor in Brazil. Brazil possesses vast agricultural resources and is largely self sufficient in food. There are basically two agricultural areas. The first is comprised of the southern half to two-thirds of the country. This region has perfect agricultural factors. It has a semi-temperate climate, higher rainfall, better soils, high technology use and adequate infrastructure. The second area is in the drought-ridden region to the northeast. Even though this region is mostly for self-sufficiency, it is slowly growing as an exporting region. Agriculture accounts for 8% of the country's GDP and employs about one quarter of the labor force. Brazil is the world's largest producer of sugarcane and coffee and a net exporter of cocoa, soybeans, orange juice, tobacco, forest products and other tropical fruits and nuts. Livestock production is important in many sections of the country, with rapid growth in the poultry, pork and milk industries. On a basis of value, production is 60% field crop and 40% of livestock. ...read more.


Brazilians with access to an improved water source rose from 73% of the population in 1986 to 87% in 2000. Brazil has truly achieved what many countries still seek to achieve. But that is not the end for the country. Brazil is still embarking on projects such as improving health, rural development, water access and education. Most importantly, Brazil has succeeded in decreasing the number of HIV/AIDS deaths by nearly 50%. What they probably need to do is to lower barriers to foreign investors and aim to increase exports. The outstanding debt is also a bit of a problem to Brazil's development. There are many improvements that can be made that could help Brazil to become an industrial power. Their revenue is increasing gradually and that does not seem to be the problem. Their currency is also quite strong. But the main improvements that have to be made are in the standards of living. Sao Paulo has high crime levels and very poor transportation. The main improvements that need attention are water treatment, water access, transportation and crime. But at the rate at they are developing, it would only be a short time before they are one of the major industrial powers. An article from India Today predicts that Brazil will have the second highest GDP in the world by the year 2050. That seems to be fiction, but Brazil has the capacity to do so. Sources: 1. "Brazil Country Brief" www.worldbank.org/br 2. "Brazil" www.nationmaster.com 3. "History of Brazil" www.nationmaster.com Varun Mohapatra Economics SL/HL Macroeconomics Page 1 ...read more.

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