The Brazilian economy has long been defined by its enormous potential. Over the past 30 years, some of this has at last been realised. Latin America’s largest economy has rapidly risen in global importance while poverty at home has declined. Yet, despite periods of progress, Brazil remains prone to economic crisis. It is also beset with stubborn inefficiencies and income disparities. This book considers the structural challenges which will need to be overcome if Brazil is to break with the past and finally embark on a path of sustained, inclusive growth. This book aims to give the reader a clear knowledge of the nature of these structural challenges, why they exist and the effectiveness of attempts to overcome them. Through this, readers will gain a deep understanding of the contemporary Brazilian economy. The challenges discussed fall into three areas: those centring on competitiveness and the supply side, those arising from critical macroeconomic issues and those connected with environmental sustainability and social inclusion. This volume systematically examines each of these domains, highlighting such vital topics as export competitiveness, human capital formation, environmental policy and the role of financial market reform. Where appropriate, this book sets Brazil’s experience in an international comparative context. It points out that many of the challenges faced by Brazil are shared by other emerging economies. In this sense, the policy lessons which stem from this volume have broader international relevance. This book will be vital reading for all those seeking in-depth understanding of one of the world’s most important, yet troubled, economies. This readership is likely to include undergraduate and postgraduate students on development economics and Latin American area studies programmes, policymakers wanting an up-to-date and coherent analysis of Latin America’s largest economy, and financial professionals.

The Brazilian economy has long been defined by its enormous potential. Over the past 30 years, some of this has at last been realised. Latin America’s largest economy has rapidly risen in global importance while poverty at home has declined. Yet, despite periods of progress, Brazil remains prone to economic crisis. It is also beset with stubborn inefficiencies and income disparities. This book considers the structural challenges which will need to be overcome if Brazil is to break with the past and finally embark on a path of sustained, inclusive growth. This book aims to give the reader a clear knowledge of the nature of these structural challenges, why they exist and the effectiveness of attempts to overcome them. Through this, readers will gain a deep understanding of the contemporary Brazilian economy. The challenges discussed fall into three areas: those centring on competitiveness and the supply side, those arising from critical macroeconomic issues and those connected with environmental sustainability and social inclusion. This volume systematically examines each of these domains, highlighting such vital topics as export competitiveness, human capital formation, environmental policy and the role of financial market reform. Where appropriate, this book sets Brazil’s experience in an international comparative context. It points out that many of the challenges faced by Brazil are shared by other emerging economies. In this sense, the policy lessons which stem from this volume have broader international relevance. This book will be vital reading for all those seeking in-depth understanding of one of the world’s most important, yet troubled, economies. This readership is likely to include undergraduate and postgraduate students on development economics and Latin American area studies programmes, policymakers wanting an up-to-date and coherent analysis of Latin America’s largest economy, and financial professionals.

In the 1990s Brazil launched a comprehensive economic liberalization program. It lifted its trade barriers, adopted new market-oriented regulations, opened up its capital market and abandoned earlier efforts to internalize production and to build vertically integrated systems across several sectors of the economy. In spite of the visible gap that separated the top global giants from the large local enterprises, Brazilian companies seemed to be willing to join in an economic liberalization process that was bound to expose them to unprecedented levels of competition, bring about a high degree of uncertainty and, in many cases, ultimately put their own businesses at risk. Big Business and Brazil’s Economic Reforms examines the most emblematic aspect of the Brazilian economic reforms, the support from parts of the local entrepreneurial class for the opening up of the economy. It investigates the reasons why Brazil carried out these economic reforms in the 1990s, the transition process and the impact of the opening up of the economy on some of its most important sectors, such as the aerospace, auto and auto parts, food processing, oil and petrochemicals, ethanol, steel, telecoms and telecom equipment industries. This book offers an in-depth analysis of Brazil’s distinctive development paths, from the Latin American economic thinking of the early stages of its industrialization to the neo-liberal stance of the present day. It sheds new light on one of the main challenges facing all the large developing economies in their move to become more integrated into the world economy, the fostering of large enterprises, and is a great resource for students and researchers interested in global business, development economics, and Latin American economic history.

Brazil faces important issues as to whether and how socio-economic and political reforms will be pursued with urgency and staying power. This book presents a strong agenda and action plan to achieve for Brazil both economic growth and improved welfare for its citizens.

Will Brazil always be the land of the future, or can true prosperity be found for this nation? This work discusses major obstacles to economic reform: a complex political system, weak institutions, a cumbersome constitution, a chaotic budgetary process, and uncontrolled revenue sharing.