Important demographics of Brazil.

Rebecca Jones

Brazil

Brazil is fifth largest country in the world, in terms of both population and land area. It is the largest country in South America, occupying 48% of the continent.

Important demographics –

Land Area = 8,511,996 km2

Population = 174,468,575

Population Density = 19.4 persons/km2

Birth Rate = 20 per 1000

Death Rate = 9 per 1000

Infant Mortality = 37 per 1000

Life Expectancy = 63.2 years

Language = Portuguese

Religion = Catholic

Pop. per doctor = 1080

In 1872, Brazil’s population was 9.9 million, which almost doubled to 17.4 by 1900. At this time, the birth rate was 46 per 1000, and the death rate was 30 per 1000, however the birth rate continued at a high level until 1960, yet the death rate declined steadily, resulting in an increasing rate of population growth. The total population reached 50 million in the late 1940s and 100 million in the early 1970s, so since 1940 the population has quadrupled. Today, the birth rate is more than double the death rate, so Brazil has a rapidly increasing population. The infant mortality rate has decreased to 37 per 1000 from 116 in 1960 proving that healthcare has improved. In recent decades the rate of population growth has slowed because of a rapidly falling fertility rate; which today is estimated at 2.09 children per woman, compared to 6 in the 1960s; so education is improving.

Brazil’s population is very unevenly distributed. 80% of Brazilians live along the coast because of flatter, more fertile land, a good water supply and economic activity.

Brazil’s Economy

Brazil has the eighth largest economy in the world, which grew faster than any other major economy (except Japan) in the twentieth century.

The structure of the economy:

Steel production is the main industry in Brazil. There are 5 steelworks in the south, where the labour demand is high. In the industrial heartland of Sao Paulo, there are over 2000 foreign companies that rely on the steel industry.

Also, car production has increased considerably over the last 40 years, and so Brazil’s car industry is the fifth largest in the world. Multi-national companies, such as Fiat, Ford, Mercedes and Volkswagen, produce cars in Brazil.

Most natural resources can be found in Brazil apart from oil and coal, thus reducing the cost of imports and therefore saving the country money.

Important figures -

GDP per Capita = $6,500

GDP real growth rate = 4.2%

Population below poverty line = 17.4%

Inflation rate = 6%

Labour force = 79 million

by occupation = services 53.2%, agriculture 23.1%, industry 23.7%

Unemployment rate = 7.1%

Budget: revenues = $151 billion

expenditures = $149 billion

Exports = $55.1 billion - iron ore 7%, soyabeans 7%, coffee 10%,

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Most natural resources can be found in Brazil apart from oil and coal, thus reducing the cost of imports and therefore saving the country money.

Important figures -

GDP per Capita = $6,500

GDP real growth rate = 4.2%

Population below poverty line = 17.4%

Inflation rate = 6%

Labour force = 79 million

by occupation = services 53.2%, agriculture 23.1%, industry 23.7%

Unemployment rate = 7.1%

Budget: revenues = $151 billion

expenditures = $149 billion

Exports = $55.1 billion - iron ore 7%, soyabeans 7%, coffee 10%,

steel 9%

Export partners = USA 23%, Europe 21%, Argentina 11%, Japan 5%,

Imports = $55.8 billion - machinery, oil, chemical products, electricity

Import partners = USA 24%, Middle East 20%, Europe 10%

Measures of Development

The Human Development Index (HDI) used by the United Nations Development Program (UNDP) is a useful cumulative index which looks at a range of variables to rank countries by wealth generated and by the quality of life available to citizens. The HDI is now generally recognised as a better indicator of a country’s position in the global development spectrum than the traditional measure of GDP.

Brazil is ranked 79th in the world which is relatively low in terms of human development. Using the GDP per capita, Brazil is ranked 63rd. Having a lower ranking on the HDI than for the GDP per capita, means that the wealth created in Brazil is not passed on efficiently to many of its inhabitants; although Brazil has made significant progress in the recent decades.

The capability poverty measure is an index composed of 3 indicators that reflect the percentage of the pop with capability shortfalls in 3 basic dimensions of human development – living a healthy life, having the capability of safe & healthy reproduction, and being literate and knowledgeable.

Out of 101 developing countries ranked by the CPM in 1996, Brazil is 13th with a CPM value of 10.0 indicating that 10% of its pop are poor, on average, in all three dimensions.

The 1996 Index of Economic Freedom ranks 142 countries according to the range of economic restrictions (tariffs, quotas, regulations etc.) or lack of them in place. Brazil is 94th.

Economic Problems

During the period of colonisation by Portugal, an economic structure was created so Brazil was specialised in export production of raw materials to its ‘mother country.’ Brazil did not develop internal markets, so when colonisation ended it was dependant on exports, but it could not get high prices for these raw materials as other countries produced the same raw materials, and they could easily be substituted. Brazil remains dependant on outside sources of capital and technology, and external markets for its commodities, especially oil. This is the dependency theory of the South Americans.

Over the years, Brazil has experienced several economic crises including the debt crisis of the 1980s (where a rise in interest rates made it difficult for LEDCs like Brazil to pay their debts and causing a loss of credit for future loans; after borrowing large quantities of capital from multilateral development banks to finance rapid industrialisation); and the currency crisis of the 1990s (where Brazil’s currency collapsed when overseas investors lost confidence in Brazil’s economy and began pulling their money out); creating a cycle of boom and bust rather than sustained growth. Although Brazil has seen a rapid growth in production and exports, but international debt and public spending have also increased. This has led to rapid inflation, so wages had to increase and savings decreased. In the early 1990s Brazil witnessed hyperinflation, which made life very difficult for the poor (prices of food increased daily), and made it very difficult for the country to develop, hence why it is still regarded as a LEDC. Also, at present Brazil has the largest foreign debt of any country in the world, with an external debt of around $230 billion. These payments amount to 24% of the GDP. Having problems with this debt has lost Brazil finance for capital, which has restricted development. Also government spending on healthcare, education, etc. has had to be reduced, which may lead to an increase in mortality rates and an increase in birth rates, causing an economic crisis. So Brazil looks as far away from achieving MEDC status as it did in 1970.

As one of Brazil’s main industries, the car industry accounts for 12% of the country’s industrial GDP, large numbers of jobs are lost when it suffers a recession. Also, ownership is in foreign hands, so again Brazil is dependent upon foreign capital.

Income distribution is very uneven, and 17.4% of the population still live below the world poverty line, with an income of less than $1 a day. The majority of Brazil’s inhabitants have not benefited much from the economic growth, and 30.4 million (20% of the population) suffer from absolute poverty, especially in the north and northeast (despite moving the capital city from Rio de Janeiro to Brasilia), although this is on the decrease. The rural poor are worse off than the urban poor. Workers earn very low wages and have little job security, so find it hard to support their family. Many children do not receive education, as they are needed to work on farms; this reduces the literacy rate of the country. Farmers with small plots of rented land pay as much as half of their production to the landowner.

If you divide Brazil’s population into bands according to wealth, the top 10% receive 47.9% of the country’s income, whereas the bottom 10% receives only 0.8%. This is a large ratio of 59.8:1, proving the distribution of income is exceptionally skewed. The large number of people living in poverty is also due to environmental factors, e.g. deforestation and drought in the north/northeast.

Economic Solutions and Aid

Due to the global economic boom of the 1970s, world banks were able to lend money to developing countries like Brazil, which borrowed large amounts from the USA (its debt to the USA was over $112 billion in 1986), Japan and Europe, and with great difficulty had to use its trading profits to slowly pay off the interest. International banks and the IMF (International Monetary Fund which uses funds from wealthy nations to encourage and control economic growth in the Third World) have put pressure on the Brazilian economy to reduce the value of their currency and reduce government spending. This will attract foreign investment, reduce inflation and make the economy more stable (although increase shop prices); all in order to pay back their huge debts.

Importing oil has resulted in huge debt as it is so expensive, so now one third of Brazil’s cars run on gasohol, which is made from sugar cane. This can be easily grown, is a renewable source and causes less pollution.

Income distribution has never been high on the list of priorities for Brazil; as economic growth, price stability and control of debt are their main goals. However huge improvements are being made to education and training as this seems to be the key to solving this, and helping to eradicate absolute poverty.

40% of Brazil’s working population are thought to be involved in the black economy, which is reckoned to be worth $220 billion. Reducing this will increase employment levels and produce a higher output.

2 million tourists visited Brazil in 1994 and spent a total of $1.8 billion. This industry is relatively undeveloped so considerable scope for expansion in the future as it represents 7.8% of GDP, and employs directly and indirectly, about 6 million people. The National Economic and Social Development Bank has launched a $3 billion plan to boost the northeast region to attract tourism. Embrateur, the organisation responsible for tourist policy has 3 main objectives for Brazil –

Improvement in basic infrastructure in the regions designated for tourism
The need to improve the quality of service to become competitive in the international market
The need to invest in marketing and promotion to change Brazil’s image.

It aims to double the number of foreign visitors, particularly those from Europe, in order to increase employment and bring money into the country, although there are the disadvantages of it ‘leaking out.’