The South East region of Brazil has developed rapidly in manufacturing and service sectors. Many multinational companies have chosen to set up production in Brazil. One such example is the Pepsi Cola Corporation. Two thirds of Brazil’s soft drinks are marketed at three production sites. The Pepsi bottling plant provides 350 jobs which help to improve the quality of life for the employees. It offers regular work and wages plus free meals and health care. Many employees are able to afford good quality housing in safe residential areas and are not forced to live in one of the many poor shanty towns situated around the large cities in Brazil. There are also a number of opportunities for promotion within the firm which can lead to a higher income for the employees and their families.
Many attractive areas of Brazil are receiving a large boost in their economy because of the ever increasing tourist industry. Cities such as Salvado and Rio de Janeiro alongside beaches such as Copacabana attract vast numbers of tourists every year. This is one example of how industry in Brazil is uneven and is concentrated in a few select areas. However, a rapidly growing sector of the tourist industry is beginning to slightly even out the imbalance in the economy. The Amazon Basin attracts another type of tourist, those who are eager to explore the wilderness. Ecotourism is an industry designed to carter for these types of tourists. The company has almost doubled its £100 billion worth since 1995 because of its popularity. The Ecotourism society states that it supports ‘travel to natural areas …. while producing economic opportunities that make conservation of natural resources beneficial to local people. ‘
Tourism allows local people to gain economically and money can be generated to protect natural habitats and endangered species. However the number of tourists allowed to visit an area at any given time must be limited if the environment is to remain unaffected.
The Pepsi Cola Corporation and the tourism industry in Brazil (if managed properly) both provide positive forms of economic activity. However the cutting down of the rainforest to provide agricultural land is unsustainable. The clearing of trees causes the roots anchoring the soil in the land to be destroyed, the removal of leaves and branches that intercept eight out of every ten raindrops lead to soil erosion. These devastating effects cause the land to become inhospitable and lead to the further cutting down of trees to provide new agricultural land. It is thought that 40% of all prescribed drugs originate in the rainforest. By destroying the environment man may be destroying the medicine that will one day cure Cancer or Aids. The rainforests are also home to many indigenous tribes with a distinctive lifestyle. These people must be protected from the loss of their environment.
Destruction of the rainforest is often increased by the actions of the indigenous people. They are poor and cutting down trees is one way for them to make money. This solves their immediate problem but this quick fix soon leaves the land non –productive and the forest is unable to regenerate. The Liana project run by the Rainforest Action Network has introduced a long term solution to this problem. It aims to develop micro enterprises in the rural communities that sell Liana vines and their products. Such a project is economically sustainable and environmentally sensitive.
In comparison with the South East, the people living in the north experience a low standard of living. Most people make their living subsistence farming. However soil once used to produce plantation crops are now exhausted and together with the fear of drought the land is unable to feed the local population. The North suffers a lack of government and foreign investment, this has left the area poorly developed. Many services are not provided, industry remains underdeveloped and a bad transport system are some of the features of this area. The lack of jobs, services and a guaranteed food supply has caused the migration of thousands of people from the region. The rapid economic growth of the South has attracted many migrants seeking a new life with better opportunities.
The economy of Brazil has a north – south divide. The prosperity of the areas are markedly different with the north of the country being significantly poorer than the south. The North relies upon agriculture producing a variety of crops including coffee and sugar cane. The growth of Ecotourism brings important wealth to an otherwise underdeveloped region and develops the area in a sensitive manner. It is now financially beneficial to conserve the unique resource rather than cut it down. In the South East the government has worked with national and multinational companies include Pepsi Cola and Volkswagen to set up manufacturing plants .The country exploits its natural mineral resources with gold and diamond mining being important to the economy.
