Posted by: bklunk | December 4, 2006

BRIC-a-Brac

One of these things is not like another.

Developing Gains

BRIC

As a dominant competitor in the future of the global economy, Brazil should be a bit concerned with other major countries that are also on the rise.  The BRIC countries that include Brazil, Russia, India and China have all made an impact on the global economy, as each country is experiencing economic wealth while fighting trade barriers.  However, as dominant as they are when cosidered within the category of trade, economically Brazil is having trouble keeping up with the other three countries.  Statistics show that withint the five years of the formation for BRIC, Inida and Russia have expanded their economy to more than six percent while China leads the pack with a whomping nine percent growth.  Brazil however, is stuck at a mere 2.5 percent and will be likely to struggle in its attempts to keep up with the other nations.  The results have had many economists wonder and what may have caused Brazil to be left behind as it entered as perhaps the most stable economy within the group.  The answer is that Brazil’s economy is driven more so by natural resources rather than being driven by knowledge.  It is understandable to why Brazil is leans more towards the land, but the fact remais that to keep up with other countries, the shift to education must come soon.  Outsourcing by other countries allow them to pick up the few extremely educated amount of people from Brazil for a mere factor of the cost the it would within their home country.  For a proximate solution, economists believe that Brazil must be willing to cut government spending in order to catch up to rival nations within the short run.  Therefore, with a low interest rate, and a lesser tax rate, Brazil will be able to incrase the lust within the investment markets.  For now though, Brazil will have to be contempt by being in 4th place; …out of four participants. 

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Responses

  1. Brazil seems like the odd man out compared to the rest of BRIC in many areas. They are geographically separated while Russia and India both border China; they are now last in line as far as economic growth; and they haven’t as of yet flexed the same political clout that China, Russia, and India seem to enjoy. Is it possible that Russia, India, and China may simply leave Brazil in the dust? Is it only a matter of time before BRIC become RIC?

  2. dc6yEdSvCFnsB


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