Brazil, a land of innovation
"Brazil is simultaneously a hyper-growth market, a leader in intellectual property (IP) enforcement and a hotbed of innovation."
As opening statements go, that is as punchy as they get – praiseworthy, congratulatory and in all honesty, sincere without any hint of exaggeration. The words are from the authors of a new report by Thomson Reuters.
The rise and rise of Brazil’s foreign workforce
The implications of this rise are not to be underplayed. The number of foreign workers coming to Brazil for a chance to make a new life, to climb up the career ladder, to simply find a job in these very uncertain times has grown considerably in the last year alone, according to the Ministry of Justice.
In 2012, non-native Brazilian workers increased by a whopping 57 per cent, which is the equivalent of 1.51 million people. The main driver behind this explosion of immigrants is the Latin connection. More so, the majority of foreign workers have come over from countries nearby. Workers from Paraguay and Bolivia have grown by 70 per cent, while those from Peru have seen their numbers triple, Folha reported.
Germany and Brazil ‘working hard’ towards a better future
After the carnage of the second world war, there was widespread consensus that Germany, though clearly responsible for igniting the spark of hostilities under the dictatorial rule of Adolf Hitler, would not be made to 'pay' for the devastation. The same mistakes that occurred after the first world war would not be made. The catalyst for the most destructive epoch in human history did, so to speak, begin in the ashes of the first global conflict.
Invariably, mistakes were made and Germany was divided into two countries, but aside from broken ideological politics, beginning most notably with the formation of the European Coal and Steel Community in 1951, she came to be an economic giant, further buoyed on by unification in 1990. Today, Germany has the fourth largest economy in the world and is a major player in European politics, as reflected by its central role in bringing calm to the volatile eurozone market.
Brazil’s hand of friendship to Cuba
Cuba occupies an interesting place in western thought. This could be nicely divided into three categories. One, it is a relic of the past that continues to masquerade as progressive; two; it is home to a communist state that has succeeded in its ideology; and three, it produces some of the finest cigars in the world.
Whatever one's sentiments are, the facts are not only clear, but astonishing: it has endured 40 years of severe economic sanctions (implemented by the US) and even survived the disintegration of the Soviet Union, its long time historical supporter and ally. It's a contradiction in so many ways. While freedom of the press doesn't exist, it has a 99.8 per cent literacy rate (according to the CIA). Its infant death rate is lower than many developed countries and is recognised for being the only nation in the world which is developing in a sustainable way (WWF). Yet it is a one-party state.
Brazil’s other female powerhouse
In the 32 years she has been at Petrobas, Maria das Gracas Silva Foster has acquired a degree of understanding and expertise that is unparalleled among her colleagues. It's the kind of knowledge that cannot be learned from a textbook, but experiential. As an asset to the Brazilian multinational energy company she is invaluable.
When it was announced that Jose Sergio Gabrielli would be leaving his post as chief executive officer of the state-controlled oil company to pursue a career in politics, Gracas Foster's – as she prefers to be known – name was put forward. There simply was no other contender for the post.
Quid pro quo: Brazil IMF dilemma
Towards the end of the Second World War, realising that greater cooperation between countries in areas of trade and finance would not only assist in helping nations recover from the devastation wrecked by years of fighting, but also go some way in preventing such a monstrosity from occurring again, leaders put their faith in the creation of a World Bank and the International Monetary Fund (IMF).
The latter evolved to be a sort of diligent observer of global economics, scrutinising the ever-complicated labyrinth of finances on such a huge scale. Its task was never going to be an easy one, as the law of politics doesn't allow it. Each country, with its own distinct histories, politics and ever-changing governments, is never static – consequently, economics, as a body of thought, the way in which it is implemented, can swing radically and that is never a good thing. It is therefore no surprise that the IMF has had a busy 60 plus years bailing countries out.
The age of optimism
Optimism…it feels like a word that has been missing from the everyday language used by politicians in the west. It has even been lacking in presence in the commentary of the media. As for the average person, well, what is there to be positive about? There's the sense that because of its prolonged absence, confidence as a normal state has somehow become an abstract thought. Until every nation in the west gets back on track economically, it appears that optimism will continue to be "missing in action".
On the contrary, elsewhere, notably in the emerging economies, optimism is ubiquitous. From those in the upper echelons of government to the labouring classes, there is a shared sense that life is getting better. The opportunity to live the dream, so to speak, is fast becoming a reality. Archaic ideas of backward politics, inefficient governments, and a decided lack of prospects, have cracked in the face of economic boom. Change is already happening.
It therefore comes as no surprise to see that Brazilian businessmen are, for the most part, extremely positive about their country's economic policy and its continued development. According to Grant Thornton's International Business Report 2012, 74 per cent of Brazilian men involved in business believe in the Brazilian economy. By contrast, that figure is one per cent in the UK.
According to Forbes, Brazilians are known for being eternal optimists. In spite of its history and poor government, the country's mantra has always been "the country of the future". Though this at times seemed impossible, with many generations never getting to see this dream realised, the last decade has put the country on track to the promised land.
While this is great news, the fact that this is a globalised marketplace suggests that there comes a moment where the misfortune of others begins to impact on the successes back home. You can continue to invest, be successful and confident, but even this has limits: especially when there is a heavy unevenness in terms of economic vitality.
This is a view shared by Ed Nusbaum, the chief executive officer of Grant Thornton International. He said that there is a polarisation of business confidence between the rest of the world and Europe. This much is evident. This much is problematic.
"The threat of total meltdown in the eurozone means business leaders remain uncertain about the year ahead – they simply do not know how things will turn out," he said.
"The business optimism results mirror the perilous position of the global economy; stronger results for key markets such as Brazil, China and the United States being offset by the lack of a clear resolution to the sovereign debt crisis in Europe."
The ‘best of friends’: Brazil and China
You scratch my back and I'll scratch yours seems to be the tacit understanding of the Bric countries. Who knows whether this global faction for want of a better word would have emerged as a fairly tight movement had it not been for Jim O'Neil unknowingly coining the now established acronym (which translates into Brazil, Russia India and China).
The focus of this feature is on the relationship between Brazil and China, literally worlds apart, geographically and culturally, though sharing, in some abstract way, a historical tie with socialist, Marxist and communist ideologies.
A year for coffee
There is something stylish about coffee, black of course. The activity that goes into its making – if done in a manner that is befitting traditionalists and purists – is equally magnificent, a careful, composed and cool affair if ever there was one. And then there's the final act, the finished piece: poured into a porcelain cup and saucer. It is art.
Like tea, coffee has become, in some ways, a staple drink, ubiquitous and accessible to people all over the world, rich and poor. We live our lives by it – the early morning wake-up, the pre-lunch appetiser, the rewarding brew after a long day's slog. It's a feature of many people's lives without them quite realising it.
The bustling beat of Brazilian’s economy
The Sun newspaper, known for its irreverent style of phrase, captured the growing power of Brazil rather well when it said that "not only does [the country] run rings around us at footie, they've also overtaken us in the world economics league".
Its business editor, Steve Hawkes, was writing after news that the South American country had overtaken the UK as the world's sixth-largest economy, highlighting the seismic changes that are apace in global politics. Brazil is slowly but surely making its presence known and other nations are finally awakening to its importance.
Moreover, a decade or so of sensible economic policy, strategic thinking and sharp management, which has engineered the creation of a growing, sufficient and strong economy – capable of withstanding tremors in global finance – is indicative of how good governance is possible.
The US' Central Intelligence Agency (CIA) explains how since 2003, substantial changes in Brazil have transformed the country beyond recognition. At a macroeconomic level, there's reassuring stability – foreign reserves have built up and debt has been massively reduced.
"In 2008, Brazil became a net external creditor and two ratings agencies awarded investment grade status to its debt," the CIA states on its website.
"After record growth in 2007 and 2008, the onset of the global financial crisis hit Brazil in September 2008. Brazil experienced two quarters of recession, as global demand for Brazil's commodity-based exports dwindled and external credit dried up. However, Brazil was one of the first emerging markets to begin a recovery."
Which meant that by 2010, with confidence restored, the South American country's GDP returned to positive. It is now, even in the face of ambiguity in the eurozone, in good spirits. Investment opportunities, especially for foreigners, is generous, with real estate one of the leading sectors. Sun, sea and success might well be a fitting tagline for 2012.
In an interview with the BBC, Francisco Itzaina, Rolls-Royce's chief executive for Latin America, waxes lyrically about the potential in Brazil, not just for his company, but for anyone looking to make something of themselves in the foreseeable future.
"God blessed Brazil with huge amounts of natural resources," he says."It is blessed with minerals and fresh water, and now we have just found huge reserves of oil and gas. Brazil is very well placed for the future."
Why is this so? Well, the obvious reason is that as an emerging economy, growth is almost implied. To modernise – as a generalisation, this equates to deeper urbanisation and mass industrialisation – nations begin investing in major infrastructure developments, financed by domestic and foreign investment, which in turn creates jobs, takes large number out of poverty, establishes an emergent middle class, who then in turn invest back into the economy.
