Brazil gets used to life in the big league
Brazil has absolutely hammered wealthy nations of the world for what it believes are economic policies that deliberately set out to underplay the growth of emerging countries and hamper their productivity, a policy which it sees as non-conducive to the recovery of the global economy.
The country's president, Dilma Rousseff, revealed a ferocious side to her that has yet to be fully seen – given that she has only been in power for 15 months and hasn't yet needed to demonstrate her assertive, no-nonsense character – and attacked leaders of the elite group of rich nations for letting loose a devastating "tsunami" of cheap money, Reuters reported.
"We have a currency war that is based on an expansionary monetary policy that creates unequal conditions for competition," said Rousseff, her rhetoric loud and angry. "We will continue to develop our country by defending its industry and ensuring that the strategy used by the developed countries to exit the crisis does not cannibalise emerging markets."
There is little doubt that Ms Rousseff and her cabinet are at loggerheads with some of the financial policies being used by, for example, the European Central Bank and the Bank of Japan. By bringing in a wave of cash inflows, they manufacture a scenario where their currencies become overvalued, which in turn makes their exports a lot more expensive.
Brazil to be fifth largest economy by 2015
And on it marches, towards prosperity and power, Brazil, the modern-day phenomena. Towards the end of last year, it was revealed that the South American country was on the precipice of overtaking the UK and establishing itself as the world's sixth largest economy. It happened. It is the case. But, not satisfied with that breakthrough, Brazil is now expected to enter the nimbus territory of the top five, the in-circle, where it'll be one of the select crew. Except it won't just be one of the gang, it'll be the "sparky" "little kid whom everyone else realises will one day be somebody.
It's almost a case of blink and you'll miss it kind of an era at present, with Brazil's rapid expansion seemingly occurring at a breakneck speed. In light of the country's strong performance, finance minister Guido Mantega, considered by many to be the architect behind the economic reforms that have allowed the country to gallop ahead over the last few years, revealed that it wasn't just him and his peers who shared this optimism.
What to do about the forest?
A fascinating thing happened over five years ago in Ecuador. Its Yasuni National Park is, as natural beauty goes, one of the most exquisite places on planet earth. It is also one of the most biodiverse regions as well, home to 655 species of trees and some 100,000 types of insects. It is also the home to two native tribes who exist on the frontiers of civilisation, living in isolation. So far, so good, but there's more to what meets the naked eye: beneath the lush land lies nearly 900 million barrels crude oil. It was, near enough, a catch-22 situation, until the government made a startling and monumental proposal to the international world – pay us half of its value to leave it untouched.
And surprisingly, against a backdrop of conflicting, inconsistent and muddled environment policies and strategies aimed at reducing energy emissions, the world responded and raised enough cash to at least put back any attempt by the Ecuador government to begin drilling for oil that will help the country expand its economy. Although the matter is by no means resolved, it shows one possible solution for preserving the integrity of mother earth.
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."
