Brazil, which is blessed with an impressive amount of natural resources and workforce, is fast developing as a global player in the world economic circle. However, its spectacular rise in the past few years as an emerging economic superpower is not sudden. It is the results of continuous reformations. Just few years ago, Brazil was considered to be a country of soccer, samba and rainforest. But after the international financial crisis, there came a sudden change in this popular perception. Global community begins to treat it at par with India and China, who are ushering a tectonic shift in the current global economic system.
Few could have dared to envisage that Brazil would play a leading role in world economy, as it is always plagued by political instability, corruptions and other socio-economical problems. Despite these disconcerting issues, Brazil’s economy has managed to grow modestly at 5% per year and if everything goes fine in coming years, its economy might grow faster than what is expected. But a resurgent Brazil economy does not come as a surprise to many economic analytics since it has a number of advantages over other emerging economies like India, China and Russia. It neither has to face any hostile neighbor, ethnic conflicts nor any insurgency and this is what has helped it to seize the attention of investors, who are always in search for a friendly environment.
The transitional stage of Brazil economy started in the first half of 1990s, when it opted for a sensible yet ambitious economy policy. In order to put a rein on the ever-increasing pressure of debt, it took a number of stern measures for curbing expenditure in various government institutions. Autonomy was granted to the Central Bank, encouragement was given to foreign investment, a number of states owned industries were privatized and inflation was brought under control in this period of economic reformation. In fact, these reformative steps are now paying their dividends now.
However, all is not fine for Brazil economy. As its economy is getting stronger and larger day-by-day, there is a greater chance of being affected by the economic turmoil than ever. Brazil should not satisfy with what it has achieved so far, instead it should try to harness market possibilities to their fullest extent, which is vital for achieving sustainable growth in the long run.