- Presentation
- Background
- Sustainable Development and Growth
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Presentation
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Background
Federative Republic of Brazil (República Federativa do Brasil)
Brazil is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people. Bounded by the Atlantic Ocean on the east, Brazil has a coastline of 7,491 km (4,655 mi).
Following more than three centuries under Portuguese rule, Brazil gained its independence in 1822, maintaining a monarchical system of government until the abolition of slavery in 1888 and the subsequent proclamation of a republic by the military in 1889. Brazilian coffee exporters politically dominated the country until populist leader Getulio VARGAS rose to power in 1930. By far the largest and most populous country in South America, Brazil underwent more than half a century of populist and military government until 1985, when the military regime peacefully ceded power to civilian rulers. Brazil continues to pursue industrial and agricultural growth and development of its interior. Exploiting vast natural resources and a large labor pool, it is today South America's leading economic power and a regional leader, one of the first in the area to begin an economic recovery.
Area: slightly smaller than the US
total: 8,514,877 sq km
country comparison to the world: 5
land: 8,459,417 sq km
water: 55,460 sq km
Coastline: 7,491 km
Population:
203,429,773 (July 2011 est.)
country comparison to the world: 5
Median age:
total: 29.3 years
Age structure:
0-14 years: 26.2% (male 27,219,651/female 26,180,040)
15-64 years: 67% (male 67,524,642/female 68,809,357)
65 years and over: 6.7% (male 5,796,433/female 7,899,650) (2011 est.)
Government: federal republic
Capital: Brasilia
head of government: President Dilma ROUSSEFF (since 1 January 2011)
GDP (purchasing power parity): $2.172 trillion (2010 est.)
GDP - real growth rate: 7.5% (2010 est.)
GDP - per capita (PPP): $10,800 (2010 est.)
Labor force: 102.2 million (2010 est.)
country comparison to the world: 6
Labor force - by occupation:
agriculture: 20%
industry: 14%
services: 66% (2003 est.)
Unemployment rate: 6.7% (2010 est.)
Industrial production growth rate: 10.5% (2010 est.)
Source: www.cia.gov
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Sustainable Development and Growth
Brazil demonstrates that it is possible to combine economic growth with social inclusion and sustainability. The country stands out for its environmental performance, holding 12% of world’s surface water and 30% of the remaining tropical forests, besides maintaining about 70% of its area with natural vegetation.
In parallel, Brazil increased agricultural production based on productivity gains, with expansion of protected areas, declining rates of deforestation in the Amazon and advance of investments in sustainable activities. The country remains a world leader in renewable energy sources and almost all new cars are flex fuel. These actions show the Brazilian commitment to promote sustainability as a central element of its development strategy.
Also essential to the country’s development strategy is the focus on investments as a way of enhancing its competitiveness. The main objective is to increase Brazil´s investment rate steadily until it reaches about 24% of GDP in the coming years. In order to do so, Brazil counts on investments coming from the public and private sectors.
The Brazilian Government is also paying close attention to the consequences of increasing financial liquidity, as a result of the expansionary monetary policies conducted by advanced economies. The “monetary tsunami” is aimed at improving the economic conditions in the U.S., Euro Zone and Japan. In fact, since 2008, about US$ 9 trillion have been spread to the world economy.
In the second stage of the Growth Acceleration Program (PAC 2), about R$ 1 trillion is planned to be invested in several sectors, with emphasis in energy projects and in the My House My Life housing program. Private funds to finance important projects are also encouraged. It is important once the country needs to invest in massive infrastructure projects in sectors such as: telecommunications, energy, transportation. One important measure is related to tax benefits given for debentures issued to finance infrastructure projects.
The Administration has launched new measures related to industrial policy, called “Brasil Maior” Plan, such as:
i) payroll and industrial products tax benefits; ii) government procurement policy giving priority to domestic goods, especially machinery equipment and pharmaceuticals; iii) foreign trade financing; iv) trade defense: operations to avoid fraud and circumventions; v) funding for production, investment and innovation; vi) new automotive regime, providing incentives for research, development and innovation.
All in all, the guiding principle in the Brazilian economy is sustainable development with social inclusion,
along with controlled inflation and fiscal balance.
Source: Ministry of Finance
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