Tuesday, November 27, 2012

Can Brazil Become More Than A Regional Economic Superpower?

In an article on the US News website, Scheherazade S. Rehman, professor of international finance/business and international affairs at The George Washington University, discusses the future of Brazil as an economic superpower. She writes that without a "miracle," Brazil will likely not be able to become more than a regional economic superpower.  

She lists the following familiar issues as obstacles to Brazil's continued growth:

• Underdeveloped infrastructure (with a particular emphasis on lack of adequate transportation)

• Lack of access to healthcare leading to a high infant mortality rate

• Widespread poverty (about 20 percent of the population)

• High crime rate (24 homicides per 100,000 residents)

• Housing

• Corruption

• Insufficient domestic savings to maintain growth rates without foreign investment

She concludes with this assessment:

"Critical reforms and lots of hard work and difficult decisions must be made during the next decade if Brazil is seeking a seat at the 'big boys table.' This continent-sized country has the world's attention; the question is whether it can keep it beyond a Latin American audience in the days to come. Back to my original assessment—Brazil will stay a regional economic superpower unless a true miracle occurs."

Update, December 7, 2012: In an interview with BBC Brasil, Dr. Rehman answers questions about her article and adds details to her original statements.

Source: Brazil Portal

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