Brazzil

Despite growing populism and political tensions, Latin America is becoming more globalized, according to the 2006 Latin American Globalization Index from Latin Business Chronicle. But Brazil, Latin America's largest economy, managed to become the least-globalized economy in the region.

The index of 19 countries looks at six factors that measure a country's links with the outside world:

 * Exports of goods and services as a percent of GDP.
 * Imports of goods and services as a percent of GDP.
 * Foreign direct investment as a percent of GDP.
 * Tourism receipts as a percent of GDP.
 * Remittances as a percent of GDP.
 * Internet penetration.

Panama cemented its position as the most globalized country, while Brazil replaced Argentina as the least globalized country in Latin America. The countries in the CAFTA trade pact uniting Central America and the United States lead the way, followed by the Andean Community members. Mercosur is making the least progress.

Of the 19 countries included in the 2006 index, 14 improved their score, while only three saw declines. The average score for the region is now 9.14, up from the 8.76 in the 2005 index. The 2006 index includes two new countries, Haiti and Bolivia, the poorest countries in Latin America and South America, respectively. Cuba was not included due to insufficient data.

CAFTA

The Central America-Dominican Republic Free Trade Agreement (CAFTA-DR, or more popularly known as CAFTA) is the big winner in the 2006 globalization index. Five of its members captured the top seven spots, including the number two position. All but one of the six CAFTA members improved their score from last year.

Costa Rica and Nicaragua made most progress, but also El Salvador, Guatemala and Honduras became more globalized. Costa Rica jumped from third place overall to second place, while Nicaragua jumped from sixth to third place on the index.

Costa Rica ranked second in the categories exports, tourism receipts and Internet penetration, while it ranked third in imports and fifth in FDI. Nicaragua ranked second in imports and FDI, third in remittances and fifth in tourism receipts.

Those scores helped offset its low Internet penetration, the lowest in Latin America in 2005 (excluding Cuba). Honduras also did well. It came in second in remittances, third in tourism receipts as a percent of GDP and fourth in imports.

The Dominican Republic, which was second last year, fell to sixth place as a result of a significant decline in its score. Its trade, tourism receipts and remittances as a percent of GDP in 2005 fell compared to 2004. But it boosted its Internet penetration slightly. The declines in scores are largely due to GDP growing faster than trade, tourism receipts and remittances.

The Dominican economy last year expanded by 9.3%, the highest growth rate in Latin America along with Venezuela. And despite the decline in tourism receipts as a percent of GDP, the Dominican Republic is still the leader in Latin America in that category.

While Costa Rica is the most globalized economy in CAFTA, the least-globalized economy in the pact is Guatemala. Its score improved, but its ranking fell. Guatemala had Latin America's second-lowest exports as a percent of GDP and the sixth-lowest Internet penetration. These low scores offset good results such as having Latin America's fifth-largest remittances and eight-highest tourism receipts as a a percent of GDP.

All in all, CAFTA managed to reach an average score of 11.05, which was better than the Andean Community (8.17) and Mercosur (7.12).

Andean Community

Four of the Andean Community's members improved their score, led by new member Chile, which jumped up one place on the overall ranking. But also Peru saw a significant increase in its score, followed by Ecuador and Colombia. The fifth member, Bolivia, was not included in last year's index.

While Chile is the most globalized country in the Andean Community, Colombia is the least globalized nation. Its low score also qualified it to become the second-least globalized country in Latin America.

Chile is the leader in Latin America in the categories FDI as a percent of GDP and Internet penetration and came in fourth in terms of exports as a percent of GDP. Its tourism receipts as a percent of GDP, however, were among the lowest in Latin America and remittances were practically zero.

Colombia's low rank is due to low scores in categories like third-lowest exports and tourism receipts as a percent of GDP and fifth-lowest imports. These came on top of average results in categories like FDI and remittances as a percent of GDP and Internet penetration.

The Andean Community overall is more globalized than Mercosur, but less than the CAFTA countries.

Mercosur

Mercosur is the big loser. Brazil has fallen to the last place in the index. Uruguay's score also fell, while Venezuela, Argentina and Paraguay improved their score. Overall the total score became the worst of the three leading trade groups in Central and South America.

Brazil had the lowest imports as a percent of GDP in Latin America, and the fourth-lowest in exports. It had the second-lowest tourism receipts as a percent of GDP and the fifth-lowest remittances as a percent of GDP. And in categories where it should do well, like FDI and Internet penetration, it only came in sixth and seventh, respectively.

Argentina fared better than Brazil, but has little to brag about when it comes to globalization. Its exports, imports, FDI and remittances as a percent of GDP are among the five lowest in Latin America. Argentina did well in only one category - Internet penetration - where it came in fourth overall.

While Brazil is the least-globalized within the group, Paraguay is the most globalized. Its exports as a percent of GDP were among the top seven countries in Latin America, while its imports and remittances as a percent of GDP were higher than the other Mercosur countries. That helped offset relatively low scores in categories like FDI, tourism receipts and Internet penetration.

Panama

Panama improved its score from last year and solidified its status as the most globalized economy in Latin America. The country ranked first in categories like exports and imports as a percent of GDP, and fourth in FDI and tourism receipts as a percent of GDP. It scored lower in remittances and Internet penetration, but not enough to take way its top spot.

The high score in trade is largely due to the commercial activity at the Colon Free Zone, the second-largest free zone in the world (after Hong Kong). Panama's high trade volumes have resulted in the country being the home of Latin America's second-largest container port (Colon).

Panama's high score in FDI is due to growing investments in sectors such as real estate, shipping and finance. The US$ 500 million acquisition of BAC International Bank de Panama by GE Consumer Finance last year was the 22nd largest M&A deal in Latin America in 2005, according to Thomson Financial and Latin Business Chronicle's Top 100 M&As in Latin America.

Panama hosts the largest international banking center in Latin America, a major reinsurance center, the region's largest company registry, the world's largest shipping registry and a growing maritime sector taking advantage of the Panama Canal.

Mexico

Mexico, the second-largest economy in Latin America, came in ninth place on the 2006 index - the same rank as in 2005. It thus fared much better than Brazil and Argentina (the other two big economies in Latin America) but lagged smaller economies like Haiti (the smallest in Latin America), Panama and most of Central America.

Despite being the undisputed trade leader in Latin America, as a percent of GDP its trade is at best average. Its exports reached 29.9% of GDP, while imports reached 31.5% of GDP in 2005. The same result is repeated in FDI, tourism receipts and remittances, where Mexico is the top Latin American country in real terms, but average when measured as a percentage of GDP. Mexico did do well in Internet penetration, coming in at fifth place (ahead of Brazil, but behind Argentina).

Outlook

Panama is expected to continue being the most globalized country in Latin America, getting a a significant boost from a US$ 5.2 billion expansion plan for the canal. "Beyond the expanded capacity, another direct beneficiary of the enlarged Canal will be the Colon Free Zone,"

Robert McMillan, former chairman of the Panama Canal Commission argues in his new book, Global Passage. "The Panamanian facility will see increased traffic as large container ships are offloaded to distribute cargo to Eastern ports in North and South America."

Panama and the Central American CAFTA members are also expected to boost globalization further as they reach a free trade agreements with the European Union, possibly as soon as 2008. That will make it the only region in Latin America outside of Mexico with free trade agreements with both the United States and Europe.

Globalization in Colombia, Ecuador and Peru will likely get a boost from a free trade agreement with the European Union. The EU announced during the EU-Latin American summit in Vienna in May that it would start negotiations this year with the Andean Community for a free trade agreement.

In reality that means Colombia, Ecuador and Peru as Bolivia is not participating and Chile already has a hugely successful free trade agreement with the EU. A further boost would come if Colombia and Peru were able to implement a free trade agreement with the United States.

The agreements have been reached, but are pending US Congressional approval, which likely will be delayed as a result of the Democrat victory in US elections recently. Although Colombia and Peru will benefit from an extension of current duty free access to the United States, only a free trade pact will provide significant increases in two-way trade and foreign direct investments, three key factors in the globalization index.

The Mercosur countries are expected to continue to be laggards in globalization in Latin America. They are the only ones without any prospects for free trade agreements with the United States or Europe.

Uruguay may boost U.S. trade and investment thanks to an Investment Framework Agreement (TIFA) with the United States, with is being negotiated and may be signed either by the end of the year or during the first months of 2007. In the short term, both Brazil and Argentina are benefiting from increased exports to China.

"Short term, Asia is the option for Brazil and Mercosur," says Riordan Roett, director of the Latin America studies program at Johns Hopkins University. But that may be a double-edged sword, he warns. There's great demand short term, but no control over pricing, he points out.

If "Brazil succumbs to the China card and places all of its trade cards in the export basket [that] dooms it to resource-dependent growth, which is a loser-policy," Roett says.

This article appeared originally in the Latin Business Chronicle. For further details visit www.latinbusinesschronicle.com/app/article.aspx?id=536

Comments (94)

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written by Robbie, November 22, 2006

Anyone remember how several years ago people were writing Panama off? And now, in spite of the image that "the Colon Free Zone" conjures up, they are big success.........

Yeahhhhh... Yet Another Gold Medal For Brazil....
written by ch.c., November 22, 2006

....if you invert the ranking !!!! Laugh Laugh Laugh !

This is what I been telling for 2 years.....already : how bad is Brazil and whatever Brazilians or Lula think or tell, afterall, only stats and the comparative rankings......are worth something and nothing else !

No doubt that many forum members who will still be in disagreement! Not recognizing facts and numbers, rankings and ratings, is quite usual from Brazilians and their Government leaders !
More bad faiths there are none !

Looks like even that Lula and his gang of inept Ministers disagree ! Smiiiillle.......

Stop hiding and lying, at the end, comparative rankings will reveal the truth anyway !

But hiding, cheating and lying has been the daily life of Lula and his gang of corrupted to the roots crooks !

Ch.c is a cancer
written by A brazilian, November 22, 2006

You never have anything to add to anything posted in this website, good or bad. You have no idea what you are talking about, what a f**king retard.

This site is for Brazil bashing, for the sole purpose of putting this country in a bad light, only for showing the bad side of anything and propagate US propaganda.

sorry for you !
written by ch.c., November 22, 2006

I am no the author of the ranking(s) !
If you have a complaint, send it to those who do the rankings, not to me !

it is not my fault if you are ranked so badly in the various comparative rankings....but
YOURS...by definition.......in my view !

What can be said of positive about Brazil, when you are continually at or near the bottom of rankings ??????
That your performances are great ???? Ot that your failures to perform are generalized ?

Anyway....enjoy you ranking here and there ! Laugh !!!!!!!

To A brazilian !
written by ch.c., November 22, 2006

I am not so sure, contrary to what you pretend, that this site is "reserved" for bashing by Brazilians only !

Otherwise Nooooo people from foreign countries would or should have access to it !

Or would you allow foreigners ONLY when they have compliments for the Brazilians and their country BAD performances ??????

Therefore why do you even allow negative articles or rankings on Brazil to be published in this site ????? Just read them all...there are literally thousands of them !

Smile....!!!!!

"ch.c." IS RIGHT!
written by Costinha, November 22, 2006

But hiding, cheating and lying has been the daily life of George Bush and his Nazi gang of corrupted to the roots crooks ! Agreed.

Now then, your gene pool could use a little chlorine, dogs**t american.

The American Moral Bankruptcy
written by CarioCAO, November 22, 2006

The capitalist wars of conquest waged by the United States under the false pretense of spreading freedom and liberty.

In any city or town in America one encounters the surreal landscape of temples serving capitalism and consumerism. Wal-Mart, McDonald’s and hundreds of others US corporations continue their rapid growth of self-worship. For appallingly meager wages and benefits, cashiers tending these sacred churches of blind greediness gather the offerings that enable their fellow faithful to reap the fruits of practicing their devotion.

However, those mixed “blessings” include working in jobs amounting to plain servitude, obesity, insurmountable debt, insulation from the rest of the world, unwitting support of a merciless militaristic regime evolved into fascism, pointless worship of celebrities and money, severe desecration of our environment, reinforced by an obscene concentration of wealth into the hands of a very few. In short, a spiritual wasteland

The myth that the United States is a germinating seed of freedom, equality and human rights is just that, a myth. A republic forged primarily by wealthy land-owners freeing themselves from the tyranny of King George, hence creating a powerful federal government that excludes the working class other then the occasional elections of representatives, purposely limited by the impact of the selected Electoral College. For long, it barred women from participation, ignored Native Americans, and maintained the legality of slavery, some still lingers.

In recent years, this character showed its true intentions to the world by engaging in numerous imperialistic endeavors, exercising its iron fist of economic rules of the Rich, by the Rich, for the Rich

America’s schools indoctrinate the notion that capitalism is the superlative socioeconomic system in the history of humankind. A Propaganda intended to keep its people pacified, working and consuming. The dark side of the American way is not for the common good but rather, for the naked brutality that enables a privileged few to mercilessly pursue their personal interests, amass private fortunes, and hoard the lion’s share to itself.

Relentlessly, the United States pursues an avenue of social Darwinists, allowing the upper stratum of the society free reign. Consider that most US presidents came from families ranking amongst the wealthiest 3%, in 2005, 143 of 435 US Representatives and one in three Senators were millionaires.

Wake up American people!

The Article Is A Joke
written by e harmony, November 22, 2006

The article is a joke. Brazil is doing smart by protecting itself with tariffs and importing less than it could. The United States did the same thing against England and Europe when it tried to build up its industrial base a century ago and Japan did the same thing decades ago.

Chile and Argentina are ranked as members of the 50 or so nations in the world listed as "high income nations" by per capita income. Brazil is ranked as a "middle income nation" but with its recent rise in average wages it is not far from becoming ranked amongst the "high income nations." Brazil is also ranked along with North America, Western Europe, Japan, Australia, and South Africa as a nation with 60% and over of its labor force in the tertiary sector which signifies its advancing economy.

Sao Paulo is the so called "Chicago of Latin America" for a reason I don't think any city in Panama has taken that title from here. Brazil is like a Heavy Weight contender building herself up - not to fast and not to slow - if "globalization" means accepting free trade agreement that may allow foreign corporations to establish themselves as corrupt promoters setting you up for a knock down and beat down by the United States... then Brazil is on the right track.

Ohhhh Nooooo !
written by ch.c., November 23, 2006

A century ago, developing countries were in no way able to be competitive in the Industrial sector - You had none !
Even today, please name a known Brazilian Car Manufacturer !!!!!! They are all foreigners !

And as to your iron ore, you sell them mostly to China, who produces added value goods, far cheaper than Brazil can !
Because despite the transportation costs, they are still more competitive than brazilians ! Sorry for you....guys !
You even export cotton to them, which is then resold all over the world ion shirts, T shirts, etc etc, including in Brazil, because you are no longer competitive worlwide. Your textile industry is losing jobs as fast as in developed countries ! For your info in the EU, for example, 60 % of shoes sold are produced either in China or Vietnam, while you are chilled when China export 1 % of your Textile industry in your country !
Buying cheaply make goods more affordable...in our view....not yours !
If you agree with the way to import the least possible, why bother us at the WTO that we buy the most....from you ? smile

As to the member talking of Nazis, please review the Brazilian and LATAM history : most Nazis were welcomed, arms wide open, IN YOUR COUNTRIES ! Against cash....of course...so that they could hide in your countries...to avoid justice !
Sad reality !

As to the wealth of the US senators, if one third are millionnaires, please tell the audience, how many Brazilian senators are NOT millionnaires ! Far less than one third !
Just read the article on this site early this year : Brazilian senators have higher salaries and perks than their peers in UK, Spain and some other EU countries ! Funny to have so much poverty.....and so much wealth ! Afterall it is not me who ranks Brazil as one of the World Most Wealth Inequal Country....but an International Agency...!!!!!!! You could as well complain to the BraziIian reporter that wrote the salaries and perks of Brazilian Senators, if you disagree with these latest comments and rankings ! And Not to Me.....because from my side I just remind you where your rankings are, but I dont make the rankings !

I know, I know, reality is hard to swallow !

And is Brazil really a heavyweight contender ? With the worst growth rate of all developing countries, with the highest interests rate in the world after inflation and with a GDP per capita of around US$ 4000.- ?????? Stop caressing your navel.
My own country, with a population 26 times less than Brazil has twice your tourism revenue, and we dont even have a sea access ! Believe it or not but in 2005 we exported more than Brazil did....yessssss ! And we have no oil, no natural gas, no ferrous or non ferrous metals in our ground and not 1 local or foreign car manufacturer ! And we export almost no agricultural product either !

And to the one against globalization and free trade....why do you then insist at the WTO too...but only in agricultural products....not in Industrial and financial services !!!! Because you are competitive only in agricultural products and nowhere else...! Quite simple !

Therefore yessss you are a heavy contender due to the nature of your population size ....and also to what God has given you......land, sun, rains but you are competitive only in BASIC commodities not in added value Industrial and Financial products ! But you are not even a contender on a per capita basis !

Stupid questiona to all of you : if you are not growing far in excess than developed nations, how and when will you effectively fill the wealth and development gap ? And if all developing nations are growing at twice your growth rate or more, wont they fill the gap....against Brazil....in 2 or 3 decades at most ? Smiiiile -)))

furthermore....continued !
written by ch.c., November 23, 2006

Please re-read the above article. Your ranking has been rated by the report and published....but not by me !
Therefore, once more, it is not with me that you could/should be in disagreement !

Ch.c you are an idiot
written by A brazilian, November 23, 2006

Whenever an intelligent person sees "numbers" published anywhere he should ask how that was retrieved and what that really means. You blindly believe in and anti-brazil propaganda, or prenteds to, just for the sake of making some stupid comment.

Especially numbers published by american or europeans agencies, that has a long history of propaganda against latin american countries, always sensationalistically portraying these lands as some sort of "evil place" for a variety of reasons.

Besides the stupidity of the article, your ramblings "..this is X times greater than that..." have absolutely no grounds in reality, no scope defined, no variables described, no context, no exact goals to be achieved except maybe to make hateful people like yourself, that happen to come to this site, to have "evidence" of what they want to believe.

Your succession of "facts" are nothing but a sequence of idiotic statements, and just make yourself look like some loser without a life, and not very intelligent.

Todays is Thanksgiving in the US.
written by Costinha, November 23, 2006

It should be renamed as Tankskilling instead!

Re: Todays is Thanksgiving in the US.
written by Brazilian expat, November 23, 2006

Nah. Thankskilling is what we have in Brazil. Did you see the last news?

http://www.jpjornal.com.br/news.php?news_id=39119

Quite simply, Brazil are miserable and not safe. Before talking about others we should first look at what's going on in the kitchen. As simple as that.

Re: The Article Is A Joke
written by Brazilian expat, November 23, 2006

The article is a joke. Brazil is doing smart by protecting itself with tariffs and importing less than it could. The United States did the same thing against England and Europe when it tried to build up its industrial base a century ago and Japan did the same thing decades ago.

The author of this statement is the joke here. The US are so open that they don't even have a trade surplus since 1975! (http://economics.about.com/od/...icit_h.htm). Quite interesting that in 1975 the american economy was doing really bad, hit hard by the oil crisis and now they are booming for more than 10 years eh? How could that be? Simple, economic growth caused by the fact that they use the cheapest products and technologies available, what makes them use the resources better than others and puts them all the time ahead of the competition. Trade surplus is not the answer. Free market is the answer.

They are not rich because of trade barriers, they are rich despite the trade barriers. Read Thomas Sowell on the job loss in industry caused by agriculture tariffs:

Their tenth element is crucial. We shouldn't ignore the secondary and long-term effects of an action. For example, trade restrictions on foreign sugar that result in higher prices for domestically produced sugar save jobs in our sugar industry. Because of those higher prices, major candy manufacturers such as Wrigley and Brach's moved to Canada and Mexico to take advantage of lower sugar prices. That resulted in more U.S. jobs lost than were saved by the sugar trade restrictions.

http://www.capmag.com/article.asp?ID=4841

"Brazilian expat" Is a definate proof
written by Costinha, November 24, 2006

... that evolution does go in reverse. An experiment in Artificial Stupidity!


hehehe

Re: "Brazilian expat" Is a definate proof
written by Brazilian expat, November 24, 2006

Just bold words. Show me your data then, let's see it.

To Brazilian expat
written by A brazilian, November 24, 2006

Quite simply, Brazil are miserable and not safe. Before talking about others we should first look at what's going on in the kitchen. As simple as that.

So I guess there aren't any murderers in the US? The prisons are all empty because there's nobody to be arrested right? Ah, I didn't hear, No?

What an idiot! What does it proof except that you are a moron?

Re: To Brazilian expat
written by Brazilian expat, November 24, 2006

Look who is talking: a guy who defends a system used in a country where 50 thousand people are murdered every year. He simply can't stand the fact that our country is overrun by unbearable problems and shrugs. 'Problems exist everywhere' he says, and that's enough for him to consider everyone equal. The 50 thousand murders per year don't mean anything. If a hypothetical remote island had 1 murder per year in a population of 10 million, then it's just like Brazil, as murders happen everywhere. That simply reveals the kind of mentality that's taken my fellow countrymen. A shame really.

It doesn't mean there aren't any murders in the US, as well as it doesn't mean there aren't murders in more peaceful countries like Japan, Austria or Germany. But they aren't even nearly as violent as Brazil, despite the fact that US they do have a population 1/3 bigger. Yes, they are a violent country with more than 10 thousand murders per year and certainly need some changes, but pretending they are as violent as Brazil is simply nonsense. And the brazilian population inside the overcrowded prisons is very large as well, and there aren't more only because there are not enough prisons and the justice is very kind to professional criminals, releasing crooks with several cases of crimes registered with the police while convicting mercilessly mothers who steal some milk to give to her hungry kids. Am I wrong?

Brazilian expat has a lesson to learn from an ancient time philosopher
written by A brazilian, November 24, 2006

Am I wrong?

Yes, you are. First of all are these few lines a "profound study of the violence in several countries in the world and its impact in the how people live"? So you basically put all your great knowledge, your omniscience, about all things in the world to work and reached this conclusion?? You took those numbers out of your ass, right?

Let's assume for a second that you are correct, HOW THAT SOLVE THE PROBLEM? I am sick of hearing international media and international morons vomitting propaganda about "how they are good" and "how Brazil sucks", if you like the place you live then fine, but BE HUMBLE JUST FOR SECOND AND DO LIKE SOCRATES, "ALL I KNOW IS THAT I KNOW NOTHING".

The problem is that this forum is attended by losers with nothing else to do.

Correcting... Re: The Article Is A Joke
written by Brazilian expat, November 24, 2006

They are not rich because of trade barriers, they are rich despite the trade barriers. Read Thomas Sowell on the job loss in industry caused by agriculture tariffs:

Just correcting my statement: the article cited is by Walter Williams, not Thomas Sowell...

RE: Brazilian Expat
written by e harmony, November 24, 2006

The article is a joke. Brazil is doing smart by protecting itself with tariffs and importing less than it could. The United States did the same thing against England and Europe when it tried to build up its industrial base a century ago and Japan did the same thing decades ago.



The author of this statement is the joke here. The US are so open that they don't even have a trade surplus since 1975! (http://economics.about.com/od/...icit_h.htm). Quite interesting that in 1975 the american economy was doing really bad, hit hard by the oil crisis and now they are booming for more than 10 years eh? How could that be? Simple, economic growth caused by the fact that they use the cheapest products and technologies available, what makes them use the resources better than others and puts them all the time ahead of the competition. Trade surplus is not the answer. Free market is the answer.

They are not rich because of trade barriers, they are rich despite the trade barriers. Read Thomas Sowell on the job loss in industry caused by agriculture tariffs:

Their tenth element is crucial. We shouldn't ignore the secondary and long-term effects of an action. For example, trade restrictions on foreign sugar that result in higher prices for domestically produced sugar save jobs in our sugar industry. Because of those higher prices, major candy manufacturers such as Wrigley and Brach's moved to Canada and Mexico to take advantage of lower sugar prices. That resulted in more U.S. jobs lost than were saved by the sugar trade restrictions.



http://www.capmag.com/article.asp?ID=4841

You say: "They are not rich because of trade barriers, they are rich despite the trade barriers. Read Thomas Sowell on the job loss in industry caused by agriculture tariffs." My response to that is that Brazil is rich also - very rich. Both Brazil and the United States have a very large GDP. The United States has the largest GDP and Brazil has the 9th largest GDP ion the world up from ranked number 10th a year or so ago. What you are measuring in increased wealth in the United States is her GDP but you are not measuring the average Americans quality of life rise of decline since the 1950's. In the 1950's most men in the U.S. could support their entire family off of one job - their job. And in 1975 the U.S. economy was doing, in that it was more effective for the average worker and citizen, then it is today - especially in regional terms. If you were to tell anyone in my Midwestern town that the job market and tax base in their city was worse in 1975 than it is today you would be laughed out the city.

U.S. corporations - helped by the Taft-Hartly Act - have been on an increasing move for decades to stimulate an economic environment wherein wages are negotiate at the principle of decline rather than rise. I mean by that CEO and CFO's offer this to city common councils and workers alike... "for us to stay in this city you must accept a pay reduction and in doing so we will only contract to remain in this city for 5 or 7 years and will renegotiate at the end of that time frame." It's no longer just hourly wage earners either, the college educated professional class is now seeing their jobs shipped over seas be it engineers or Information Technology. GM just announced recently it will enter the Chinese auto market (which in ten years time will take over the United States as the largest car market in the world) and will not hire American engineers but employ tens of thousands of Chinese engineers for much lower the cost than it would cost them to payroll U.S. educated engineers.

Be sure jobs will remain in the U.S. - especially at the low pay end service jobs - and there will always be rich people here and in fact over the next few decades the rich in the U.S. will just get richer. However, the average workers life in the U.S. will decline per material capacity as corporations ensure their rates of profit do not just remain high but keep increasing.

Brazilian protective tariffs are looking for longevity rather than rapid short term fixes. This will have the negative consequence of allowing them smaller but steady economic growth, but it will have the positive effect of allowing their economy to keep stability in global economic crashes. Argentina is ranked as a high income country along with the United States, Canada, Italy and Japan... that the Yakuza in Kobe, Japan with their hands in Japanese industries and Japanese banks could partly cause a global economic crash and be one of the causations of so many Argentinian workers being thrown out of jobs - whilst Brazil a middle income country and nation protecting itself from being over run by imports, shows in my mind the fragile nature of a nation state placing its economic stability on the dependence of the predilections of the Yakuza in Japan.

Re: Brazilian expat
written by Brazilian expat, November 24, 2006

Same doomsaying as ever. In the 80s, it was Japan that would overtake the american industry and reduce your country to a secondary role. Not only that didn't happen as you have grown out way too much more than them. If you read the same article by Walter Williams (not Thomas Sowell) you will notice how he says that higher-paying jobs are actually migrating to other countries because the US are protecting low-paying jobs in inefficient industries, like agriculture. If that observation is not sufficient to you, take a look at the performance history of the nations with the biggest trade barriers: Brazil and Latin America as a whole, the former Soviet Union and other communist countries and so on. Aren't they all poor? Take a look at France during Colbertism. Wasn't it poor? Ah, and next time you claim about taxes (I agree with you, they are too high), please remember that billions of dollars in taxes are being used to keep those low-productivity low-paying jobs in the US, ok? That's something that can take you to the abyss.

And how do you suppose brazilians will be able to make products at the level of the american and european ones when the country does not make nor import high tech computer parts or cars? How are they going to make a computer to compete against the most modern in the world when more than 2/3 of the population don't have access to the very expensive computers here? How do you suppose Brazil will be an IT power if programmers don't have access to computers? How do you suppose we will have the best engineers in the world when they have to pay twice as much for the latest 3D video board or graphical station? As you yourself stated it, Brazil are defending the low-paying low-productivity jobs much more than the US. And just like the US, but in a much larger scale, unemployment among college graduates in Brazil is far too high. Take a look at how many college graduates in Brazil seek jobs for more than one year. Take a look at how many engineers are fired by the age of 35 and take months or years to get a new job. The problem here is far worse. And if China gets those jobs while Brazil doesn't, that's their virtue, not ours.

You cited the fact that one man working alone was able to support a family in the 1950s. Why couldn't he do it now is something that I don't quite understand. Just because he and his wife now buy a new car every two years? Just because he and his wife bought a US$ 750,000 house much bigger than he needed and the payment is eating him alive? Just because he and his wife can't live without a boat or the latest computer or TV set? Well, Robert Kiyosaki has some things to say about all of that; Is the quality of life in a modern SUV, with modern TV sets and freedom to travel around the world smaller than that of the 1950s? Is the quality of life of someone working in an office or even at home smaller than that of a heavy industry worker? I definitely don't think so.

Last but not least, the 9th place that Brazil occupies doesn't mean much. Our GDP per capita is about 4 times as lower as the US under PPP and 10 times as lower under EPP. That's the most important.

Re: Brazilian expat has a lesson to learn from an ancient time philosopher
written by Brazilian expat, November 24, 2006

Let me ask you again. Am I wrong to say that there are lot of convicted criminals who are not in jail in Brazil? Am I wrong to say that justice uses to release thieves just the day after they have commited a crime while convicts to years of imprisonment people who stole food because they or their children were hungry? Am I wrong?

I love this mess
written by Tanaka, November 24, 2006

I returned to Brazil because is a messy country. Here, I can have a maid very gorgeous. I have a descent job and I really do not care about international economy. We have banana, manga, water melon, vatapas.... and a lot mulatas!!!!!!

I love Americans ....................................... and Brazilians
written by I love Americans............................ and Brazilians!, November 24, 2006

It's amazing but my best friend is a Brazlian married to an Americana with a couple children. I love her and her children, therefore her American husband.
Why do we need to be arguing about these stupidities such as globalisation: we all know the truth about it, and the truth is that neither the Americans or Brazlinas will be the beneficiary of this new world order other than the people who is orchestrating it. Find out yourselves.

Stop been foolish you all!!! Open your eyes; whilst we fight each other they are gaining terrain. It's a shame to know how it is evident neither the American system or our system works... go the website: thetruthseeker.co.uk and find out the reality about the world. BE CLEVER!!!

...
written by Nana, November 25, 2006

I don't think brazilian expat is wrong. Although society has to work as the ultimate judge and supervisor of the national state, the state is the institution who defends the society.

No we dont want a Mexican undereconomy with those several underskilled employees, jut to be able to compete in the world economy. We want full development, the society development, and for that matter a solid, independent and growing economy is important. Brazil's already kind of a highjacked country of the multinational companies. Unfortunately. So we need our government to defend its society.

I love Bush......Hitler......Stalin
written by Costinha, November 25, 2006

all the same ideology.

...
written by e harmony, November 25, 2006

I don't think brazilian expat is wrong. Although society has to work as the ultimate judge and supervisor of the national state, the state is the institution who defends the society.

No we dont want a Mexican undereconomy with those several underskilled employees, jut to be able to compete in the world economy. We want full development, the society development, and for that matter a solid, independent and growing economy is important. Brazil's already kind of a highjacked country of the multinational companies. Unfortunately. So we need our government to defend its society.

Brazilian Expat has a narrow view that does not reflect the reality of a world with over 190 something countries. His view point is a zero-sum game wherein one judges a nation state and people by the culture and economy of the United States.

I point out the large decline in tax base through out my city and most Midwestern cities since the 1970's and he responds back with he agrees "taxes are to high." That is not what "tax base" refers to. The tax base of any city is one indicator of its economic prosperity because the tax base corresponds to the average and total earnings of the citizens in a city. The more people earning high wages the more tax dollars a city collect and can upkeep its water works, parks, roads, police department, public school system, and et cetera.

Brazilian Expat points out corporate welfare in the U.S. for the agricultural sector (in certain states like Wisconsin even small family owned farms must be incorporated by law. Incorporation is a legal classification and should not be confused with the social ideas of large corporations such as Walmart or G.E.) as draining the U.S. economy and by implications hurting the average U.S. worker. While it is true the agricultural sector does receive billions a year from the U.S. Federal Government, it is disingenuous to imply a sector that only employs roughly 2% of the U.S. workforce is some how destroying jobs for the total U.S. employment sector, especially when the U.S. economy is switching more toward a literacy based economy (be that in verbal, written, or computer language).

So my post won't be to long I'll continue it in a post below this one.

...
written by e harmony, November 25, 2006

I don't think brazilian expat is wrong. Although society has to work as the ultimate judge and supervisor of the national state, the state is the institution who defends the society.

No we dont want a Mexican undereconomy with those several underskilled employees, jut to be able to compete in the world economy. We want full development, the society development, and for that matter a solid, independent and growing economy is important. Brazil's already kind of a highjacked country of the multinational companies. Unfortunately. So we need our government to defend its society.

Post continued...

This comment by Brazilian Expat, "You cited the fact that one man working alone was able to support a family in the 1950s. Why couldn't he do it now is something that I don't quite understand. Just because he and his wife now buy a new car every two years? Just because he and his wife bought a US$ 750,000 house much bigger than he needed and the payment is eating him alive? Just because he and his wife can't live without a boat or the latest computer or TV set?," reflects in my mind a person that has never stepped foot in any Eastern or Midwestern metropolitan in the United States. It reflects a personal experience of someone who visited the Phoenix, Arizona suburb of Scottsdale rather than central city Phoenix... or perhaps someone who visited downtown San Diego and believes that reflects life in Cleveland, Ohio or Newark, New Jersey. It's about one of the most ignoramus comments I ever read. My own city is a "second tier" city (meaning less than a million people but at least having as many as 500,000 people) and I only know one or two people that have homes worth that much - both cases they are people that married millionaires. High end condos in my town go for about $750,000 to a million and over. Many central city homes run from generally around $20,000 to $60,000 - the new builds in gentrification areas generally run about $100,000 to $150,000.

This bring up the point of decline in tax base and reflections of wages ans salaries in terms of categories of people. I use the word category to refer to people sharing common social life e.g. racial, gender, sexual orientation, regional, social class et cetera. How one derives at "mean income" and "median income" require different mathematical operation(s). Either way neither reflect accurately the truth of economical situations even as helpful as they may be to create a picture and identify certain problems. If the "mean income" or what is also called the "average income" (used in per capita figures as well) is derived from major gaps in income levels such as $75,000 annually and $12,000 annually predominating, then the "average will reflect neither of the those two predominating income groups" but the quotient derived from the sets and sum will come out to be something midway between those two extremes.

Service jobs are many but the ones most commonly created in traditional metros of the United States are service industry jobs like commercial cleaning (e.g. cleaning bathrooms). The United States Government is not "protecting" these jobs from going overseas because they are the kind of low end paying jobs that helps make the life of the professional class in the U.S. have an easier life as well commercial building upkeep requires constant cleaning and maintenance. A significant part of my cities population earns roughly $12,000 to $14,000 a year, there are many earning $60,000 or more in wages or salaries annually but the pool of those earning between $60,000 ans $12,000 a year is rapidly decreasing. $12,000 a year might be a lot in Brazil but it has little purchasing power (annually) in the United States. And purchasing power is what really matters.

Brazil has to be judged not just against the United States or even Western Europe but against the entire world composed of over 190 nation states. I mean though today's United States has more material pleasures than the "Roaring Twenties" of the United States had (e.g. we have micro waves, tv's, air-conditioning) the Roaring Twenties in the U.S. was not inhumane because it lacked some of our pleasures. Brazil is not inhumane because it's country - large sections of it - lack certain material pleasures more common in the U.S.. Is a car more important than loyal girlfriend that loves you? Some of this is a matter of perception and or modern values as to what constitutes "good" or "happiness."

...
written by e harmony, November 25, 2006

I don't think brazilian expat is wrong. Although society has to work as the ultimate judge and supervisor of the national state, the state is the institution who defends the society.

No we dont want a Mexican undereconomy with those several underskilled employees, jut to be able to compete in the world economy. We want full development, the society development, and for that matter a solid, independent and growing economy is important. Brazil's already kind of a highjacked country of the multinational companies. Unfortunately. So we need our government to defend its society.

Post continued...


Brazilian Expat's commentary on the auto industry reflects more early and mid 20th century capitalism than it does 21st century globalization. In a global economy, with modern technology reducing the obstacle of time (time traditionally has = cost for business) Ford no longer needs to have all elements of it's company (meaning physical buildings also) located in Detroit. Through the use of cell-phones and email time (which also = distance) is no longer the obstacle it once was. So corporations to escape prevailing U.S. wages, environmental laws, and labor laws in the U.S., can increase rates of profits by relocating segments of their companies to Mexico, Brazil, China, Vietnam or else where. Consequently Sao Paulo has won more in the automotive producing industry over the past couple or few decades than Detroit; Detroit has lost more than Sao Paulo.

Brazilian Expat is correct however that Brazil has to invest more in educating her people - and not just at a grade school level. In my own city 27% of the adult population of the city is "functionally illiterate" according to info I received from my college. "Functionally illiterate" basically means a person has some education (even at just the grade school level) but has trouble reading the daily newspaper, bus routes, and can not function productively on jobs requiring some level of literacy skills. This kind of situation will ultimately hurt any city in the 21st century (though in the 1950's a person could make decent wages in factories by just having a strong back - didn't matter usually if they were high school drop outs or couldn't read), be it a Brazilian city or a U.S. city.

Argentina is ranked as one of the world 50 or so nations that are "high income nations." That means Argentina shares this ranking with the United States and South Africa. Brazil is ranked as a "middle income nation" which means she shares this ranking with Mexico and Iraq.

Both Brazil and Iraq are listed as "middle income nations" yet some of Brazil's southern metropolitans look more advanced than my former gritty Midwestern industrial city in the U.S. Baghdad in comparison in no way gives off any impression in aesthetics, infastructure, or professional class as being even half-way as advanced as my former gritty Midwestern industrial city. So is Brazil closer toward the "high income nation" end of the spectrum or closer toward the "low income nation" spectrum within her place in the "middle income nations"?

Re:...
written by Brazilian expat, November 25, 2006

Ah, then you are worried about the income for the state. As you assumed something about me, then I can assume something about you. You are probably some city administrator, a politician, a public school teacher or some other kind of state worker, right? Well, wouldn't it be easier to make money come if you actually let the economy grow? Look at Florida: taxes are way lower, the economy is booming and well, it doesn't look like money is lacking in public treasuries despite the fact that some democrat administrations claim the contrary. You know, there is a big problem with money going to state. Public workers are generally rewarded by the ammount of money they spend, not the ammount of money they save, as happens in the business world. Quite simply, the public administrator who does not spend all the money available is cursed by all of his peers. Not only that leads to bad investments (that's why the governments are always making one bad investment after another), but that kind of mentality always leads to tax increases. Tax money is easy money. When the government needs money, it's just a matter of rising taxes. It doesn't really need to offer more services to the population, as tax paying is coercive. Everyone has to pay taxes. In the business world, however, when a company needs money, it has much fewer options: it must borrow the money from someone willing to do so, it must use its own savings or it must provide services or products that are better than the competition to other individuals. They simply can't force anyone to give them money, as the state can do.

Well, let's get back to your poor workers. I'm quite aware that not everywhere houses cost up to US$ 750,000. The US have an enormous variation of housing price ranges. In Kansas, one could buy a very nice house for US$ 200,000, in Tampa, Fl, for US$ 500,000 and US$ 1 million in CA. That however, doesn't mean that americans don't spend too much in things they don't really need and houses bigger than they really need. Even poor americans spend a lot of money in expensive cars, electronic gadgets and other things that middle class brazilians don't even dream about (http://www.ncpa.org/ba/ba185.html). And you claim also that for those poor people making a living is very difficult. Well, first there is an obvious thing in any economy: poor people lives are always difficult when you compare them to the upper income classes, be them in the US, in Brazil, or in Cuba when you compare the common citizen against some of the crooks who run that island. But when you compare how the poor people live in different countries you see what countries have a better economic system. As such, I cannot say that poor people lives in the US is really difficult when you compare them against Brazil. Nor is it difficult when compared to the poors in 1950, when they didn't have gyms, comfortable and safe cars among other things for their consumption to the extent they have today.

You also defend the trade barriers and subsidies. Well, for the first, don't trade barriers protect local workers and industries? Don't they protect exactly those who produce products that cannot compete in price and/or quality against the imported products? As such, don't they have an effect of keeping prices higher than they would be if those barriers didn't exist? And who suffers more when prices get higher? The wealthy or the poor? For the second, don't subsidies require taxes to be paid? Don't they eat a percentage of the income of companies and individuals to keep the prices artificially lower? Doesn't that cause, as a chain effect, higher prices (because of the taxes) in the non-subsidized products? And who pays those subsidies? The companies that decide to produce in China or the local workers and industrials?

You also placed Argentina as a high-income nation. Please, could you explain to me how a high income nation has half of the population living below the poverty line? (http://news.bbc.co.uk/1/hi/business/1981054.stm)

continuing...
written by Brazilian expat, November 25, 2006

... just forgot to add that the stats of the 1st link (http://www.ncpa.org/ba/ba185.html) are of 1994. There is another from 2002 here: http://www.heritage.org/Resear...bg1713.cfm

This is a report about a poor neighborhood in Baltimore: http://www.baltimoresun.com/bu...eadlines-1

Pictures are also good to ilustrate things. In this case, they are really worthy one thousand words. Take a look at the pics of the poor people in that neighborhood: http://www.baltimoresun.com/bu...eadlines-1

That's supposed to shock americans about the poverty in that forgotten neighborhood in Baltimore, but when I showed it to my brazilian friends they were shocked on how wealthy those poor people are. Quite simply, the cars, cell phones, house interiors and such would make them upper middle class citizens in Brazil, with the difference that upper middle class brazilians don't drive even used Cadillacs.

And well, again, if those poor people don't have problem to buy cars or gadgets but can hardly buy food because it's expensive, remember that brazilian food is much cheaper and is not exported to the US because of trade barriers and subsidies, ok? It's simple: in order to save a couple of jobs in the agriculture you are condemning all the americans to pay more for their food, what creates problems mainly for the poor.

correcting...
written by Brazilian expat, November 26, 2006

remember that brazilian food is much cheaper and is not exported to the US because of trade barriers and subsidies, ok?

I mean, it's exported to the US, but less than it could be.

Baltimore likes any place
written by Tanaka, November 26, 2006

I saw the pictures in Baltimore. Good pictures. I lived in North America for almost 12 Years. I saw a lot poverty in USA and also in Canada. Believe me, it is not so different from Brazil. In a slum in Rio de Janeiro you can have even a R-15 to protect yourself. Cable television, air condicionated, electricity, etc... and perhaps you do not need to pay one cent. Do you know what is the meaning of the word gato? a way to steal electricity from the state.
We are living the globalization, there are poverty to all places in the world. Education today is relative, you can give a good education to your daughter, send her to ballet class since she was toddle, she can go to a rep**able College and she may end working in a bar as table dancer. It is hard to get a job and keep it. I came back to Brazil and since that I am teaching in the Brazilian Universities. It is a difficult job, since I have pos secundary education from North America, it is very hard to adjust the system here but I am doing well. My wife that is not brazilian help me to prepare my classes. And I am struggling to pass in a public contest in a federal university. Once federal jobs are to the best friends and I can see from the editals that everything is a big game and in general when they open the public contest, the departament has the candidate that will get the open. I used to taught using power point because the student get a lot material in a short time and they also think that you do not know the subject. So, I decided to teach using the black board with a charcoal, this way I can show that I really know and they therefore get less material to study to the tests. I wanted to make some handouts and charge 10 Reals for the material, no way the department boss said to me. We can not make handouts and charge the students this in a federal university as substitute professor.
When, people talk that Brazil needs education, I laugh, people here need diploma, they do not want to learn, they do not care with new technology or development. Girls go to class to find boy friend and perhaps a husband. If they have an affair with the professor they can go to graduated program. So, they can get "As" if they have a gorgeous ass. And when they end the program, they may get in as Professor if they were warm with the former advisor. So, do not dare talk about real education, education for life, improvements etc... Let's play the game. I came here because I can live better in such messy country.

THE USA SUCKS!
written by CARL bARBOSA, November 26, 2006

America's Corrupt Legal System
Rigged courts, bribed judges, phony trials, extortion by lawyers, and over 2 million prisoners in the USA gulag


by Les Sachs

Global Research, August 30, 2005
Banned in America Blogspot


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The recent pattern of American violations of international law are ultimately based in the corruption of the USA domestic legal system. Phony USA courts are very dangerous even for travellers and visitors to America, who can easily wind up among the USA's more than 2 million prisoners, or lose all their family's possessions to corrupt American lawyers.

All world citizens should know how the corrupt USA legal system, is a danger to every traveller, visitor, and guest worker from overseas, and to every individual who takes the risky step of entering upon American territory. Just ask the overseas families of prisoners who were put to death inside the USA, with their embassies never even being informed that they were arrested - or the many foreign people serving hugely long prison terms in America, after they were jailed on flimsy tainted "evidence" from criminal snitches.

The reality is that the United States of America, which proclaims itself the "land of freedom", has the most dishonest, dangerous and crooked legal system of any developed nation. Legal corruption is covering America like a blanket.

The corruption of the USA legal system is well-known, but also well-hidden, by the news services of America's corporate-owned media. The US media companies are afraid both of reprisal, and of the social revolution that would come from exposing the truth. Here is what the US media companies know, but are afraid to tell you about American "justice".

Concentration camps with concrete walls

America has the largest prison gulag in the entire world - yes, right there in the USA, the self-proclaimed "land of freedom". The starting point for understanding anything about the USA, is to digest the fact that just this one country, the United States of America, has twenty-five percent of ALL of the prisoners in the entire world.

More than 2 million prisoners - more than 1 out of every 150 people in America - are behind bars in the American gulag. This is now the world's biggest system of what are effectively concentration camps, though most of these prisoners are behind masonry walls and inside prison buildings.

For minorities, the statistics are even more brutal. For example, the USA is now imprisoning about 1 out of every 36 people in its black population. American "justice" is especially focused on jailing young black males.

Quite amazingly, Americans and the American government, continually criticize the legal systems and so-called "political" legal proceedings in other countries such as China, Russia, and even Belgium among many other places. Yet, for example, the proportion of prisoners is 30 times higher in the USA than in China, even though China is a country regularly criticized and denounced by the USA government.

RE: Brazilian Expat
written by e harmony, November 26, 2006

Brazilian Expat,

In general the Brazilian poor have a much more austere life than the poor in the U.S. In fact some rural poor in Brazil may even starve to death. No one really starves to death in the U.S. minus a minority of children abused by cruel parents who will refuse to feed them or find food for them. However, recently for the first time in human history there are now more overweight people on earth than there are skinny people. The United States still ranks as the most overweight nation on earth but this medical problem is now being found all over including in Brazil.

You'll note this guy in the bottom of this article http://www.sfgate.com/cgi-bin/...APRVQ1.DTL that stands 5 foot 7 and more than likely has no more than a high school education - if that - weighs 231 pounds and also has a daughter that is overweight. Given his occupation it is reasonable to guess he lives in a Rio favela. Now I'm 5 foot 7 and weight far less than this guy and cannot imagine how one can consume so much to be overweight. My own college educated brother who has a masters degree, a wife that works full time plus goes to school, and they have three children, can only afford to eat once a day to feed his children twice a day (they also receive lunch at there public school). Neither one of us weighs 231 pounds. And let me inform us as you run your mouth about going to gyms, the only gym I attend is a boxing gym. I know three things: run, push-ups, and sit-ups. I run outside when it was 10 below zero with the wind chill. I've run in the hot summer across the street from police officers sealing off house and zone where a man is held up inside with a rifle threatening to shoot people, while his old lady is outside cursing everyone out for watching. I do not know this yuppie, cuddly, America you depict.

As for home prices years back I worked on a "new build" home that cost a quarter million dollars - that roughly $250,000. It was located in a upper class, predominately white suburb. This house was massive (by my standards at least) and had a master bedroom and a master bathroom with a round tub. It was being built by a doctor that was originally from India (I think he was a brain or heart surgeon or something). My boss informed me that if the guy told him he did not want black people working on his house he would have to pull me off the job. Now... I don't know what world you live in but people that earn $6.00 an hour vacuuming office floors don't buy or build quarter million dollar homes let alone three-quarter million dollar homes as you originally alluded to.

The 1950's? Please I can't even imagine honest conservative people in the U.S. espousing non-college educated Americans could sustain a better living today then those in the 1950's minus perhaps some of those conservative pricks at the Heritage Foundation think-tank that have propaganda to promote. Just the mere strength of organized labor in the U.S. in the 1950's compared to today ought to shed some light on that. The 1950's are considered the glory days of the "middle class" in my region. That's back when a young kid could drop out of high school and work in factory earning enough money to buy a home, new car, and raise a family of four kids *while his wife stays home.* You're sadly mistaken if you think that is a reality in todays United States - I don't care how large the GDP is or grows or any of Ronald Reagan's "trickle down" theory.



Continued below...

RE: Brazilian Expat
written by e harmony, November 26, 2006

Post continued...


Yes, protective tariffs protect the working class and the nations industries. Price might be higher but consequently people remain employed. It's related to the "circular flow of the economy" theory. If a person is employed they can spend money at the local store, which means the local store can buy more products and keep people employed, which consequently means the industries the store purchases products from remains in business and keeps others employed under her et cetera.

My college sociology book has a colored map off all the worlds nations ranking them as either "high income," "middle income," or "low income." It is a classification system accepted and used by the highly educated sociologist of the United States and Western Europe. South Africa is listed as a "high income nation" and South African shanty towns are far worse than Rio's favelas. Rio's favelas like Cleveland, Ohio's ghettos are "relative poverty" for the most part compared to South Africa's shanty towns that are often conditions of "absolute poverty" e.g. no running water, shacks use buckets for toilets, no electricity. The United States is ranked as a "high income nation" also even though Los Colonias in Texas, rivals poor conditions in Mexico, with generally no running water or electricity, 85% of them are legal residents and more than half U.S. citizens, it is home to approximately 700,000 people (to be expected 1 million by 2010) and did not even get a system to pump out water to them (which often doesn't even work now) till 1995.

So if you are mad because Rio de Janeiro's favelas can have a minority of dwellers that stand 5 foot 7 and weigh 231 lbs, probably helped by Lula's program for the poor, and protective tariffs can keep industry booming in Sao Paulo to give that city an economy twice as large as the entire national economy of Chile... instead of having thousands hundreds of poor people lining up to use one outdoor water tap to get water from as many of the poor do in the shanty towns of South Africa and India... by all means be angry about it.

RE: Brazilian Expat
written by Brazilian expat, November 28, 2006

You'll note this guy in the bottom of this article http://www.sfgate.com/cgi-bin/...APRVQ1.DTL that stands 5 foot 7 and more than likely has no more than a high school education - if that - weighs 231 pounds and also has a daughter that is overweight.

There are some fat people in brazilian slums, specially in the richest cities, like Rio. Food is cheap in Brazil, and unnecessarily more expensive in the US. In Brazil, specially among those who earn a little bit more than their peers and are able to buy cookies and other ultra caloric food. However, if you see any pics or any movies, you'll see that most slum people are small and skinny. Make no mistake, their consumption standards are far below those of the poor americans (perhaps only street vagabonds or the very few people living in shacks in a city like LA consume less than them) . In addition, percentage does matter. I don't know any study about this, but I bet the US has less than 1% of its population that consumes as little as the 50% poorer brazilians.

That's back when a young kid could drop out of high school and work in factory earning enough money to buy a home, new car, and raise a family of four kids *while his wife stays home.

That's interesting. Well, I'm aware that Midwest did not follow the growth of other regions, but I know one guy in Florida who did exactly that which you cited, except for the fact that he was a dropout of a brazilian high school, he didn't work in a factory but in basic cleaning and construction services and supported a family that includes his father, his mother and his sister with two kids. He spent two years in US until he got the green card and he managed to bring all of his family to live in the US under his expenses by the end of the 3rd year. He just did not buy his quarter-million house before because his credit was bad. And make no mistake, he worked a lot (10-14 hour a day, a little bit more than your factory workers by the 1950s) until he could start his own business. It's interesting, but he simply doesn't understand how american-born people are so lazy nowadays and don't get well off in a country like this, given the fact that americans don't have as little rights as he has.

Yes, protective tariffs protect the working class and the nations industries. Price might be higher but consequently people remain employed.

Tell me one country where that has worked fine. Tell me why there is so much unemployment in Brazil despite the huge trade barriers, specially among well-educated workers. If trade barriers are the solution, then why did Hong Kong, the most open economy to date (until it joined China again), sustained an unemployment level below 2% from the early 1970s to the late 1990s, despite having passed from a primary economy to an industrial economy and then to a services economy during that time. Tell me why did England grow so much during the early XIX century despite the fact that most of the food consumed was imported.

My college sociology book has a colored map off all the worlds nations ranking them as either "high income," "middle income," or "low income." It is a classification system accepted and used by the highly educated sociologist of the United States and Western Europe.

You mean marxists then? Well, 10 minutes car trip accross Buenos Aires would show you how that book is just plain wrong. Anyway, which book is that? I need an example to show the world how manipulative some "social science men" are nowadays.

protective tariffs can keep industry booming in Sao Paulo

That just show you how misinformed you are. There is no boom in São Paulo. Since long São Paulo has been losing factories to other places in Brazil. And now even poorer semi-industrial states like Paraná are losing the factories, which are opening elsewhere: in China, India, South Korea, etc. If there really was a boom in São Paulo, there would be no need for me to have moved from there in the first place.

do not worry
written by Tanaka, November 28, 2006

Even so, it is nice to live in such messy country. We have banana.

RE: Brazilian Expat
written by e harmony, November 29, 2006

Brazilian Expat,

In the United States a person can support a family off of a construction job paying approximately $15 and hour and more (depending on city and region), so I have no doubt your friend could support his family off of his construction work in Florida plus with another job. However, what you fail to realize is everyone can not get in employed in those positions. And as far as Americans being lazy workers of the world please do not make me laugh. The United States work culture has never been one of "laziness." Simple fact is most first generation immigrants to the United States have always lived in poverty - and that remains true to this day. So this fantastical tale you wish to evoke that immigrants from Brazil or Mexico come to this country today and most of them within a few years find they are living in streets paved of gold and houses built of marble is just a simple fallacy. In fact more Puerto Ricans return to Puerto Rico annually than come to the United States citing discrimination and lack of opportunity as the number one reason. I can't tell you how many first generation Mexicans toil away in poverty in the U.S. in hopes that their children will have a better future than them. But the Mexican experience - with its triumphs, struggles, and failures - is not unlike the first generation Irish, Italian, German, Slavic, or Eastern European Jews that came to this country. Most of them lived in poverty their entire lives - it took a generation or more for those groups to arise out of U.S. poverty.

As for Sao Paulo... it is a booming industrial giant and cosmpolitan city. It has more helicopter taxis than any city on earth. Discovery Channel Atlas just did a 2006 show on Brazil giving it the pomp and emotional tale of individuals transformations as is usually given to the United States. They show almost moved tears in me at the end. It followed a number of people in Brazil including a young mixed-race woman who is a helicopter taxi pilot that shuttles high paid executives from one sky scraper to the next. I believe the show stated Sao Paulo has either 100 helicopter lift off per hour or per day. Either way Sao Paulo is a city with a huge economy and massive wealth it is in every way a city that epitomizes capitalism. Discovery channel also followed a mixed-race cowboy in Brazil, and according to the show Brazil has more cowboys than any nation on earth. -- Listen Brazilians have every right to be proud of Brazil and even reckon pride in the fast pace business city of Sao Paulo.

As for the tariff issues I already told you it worked for nations like the Japan and the United States when they were trying to improve their industries. England is a nation that colonized numerous lands and made it law that those nations had to sell their raw goods to them (at the price England set) and England would turn around and sell those products turned into finished products for very high prices back to her colonized lands - it was not a "free market" she operated.

As for the sociology book it is authored by John J. Macionis and no he is not a Marxist - at least not by the impression he gives from some of his commentary of communism. The book states "Middle income countries have a per capita income of between $2,500 and $10,000, roughly the median for the worlds nations. Two-thirds of the people in middle-income countries live in cities, and industrial jobs are common. The remaining one-third of people live in rural areas, where most are poor and lack access to schools, medical care, adequate housing, and even safe drinking water." Basically nations that have per capita incomes of $10,000 and over are considered "high income nations."

Do I place much stock in the current rankings of "high income nations" to middle and "low income nations"? No not really. I suppose their are some objectives truths one can find in the variables but I tend to believe the whole thing is most subjective than purely objective and 100% truth. The reason I first pointed out to you that the United States and Argentina and Chile share the rank of "high income nation" and that Brazil and Iraq share the rank of "middle income nations" is to illustrate to you how these classifications (and even the more outdated, archaic, and more inaccurate terms "first world" vs second and "third world) do not give accurate impressions of close to 200 something nations on the earth. You are quick to point out the differences between Argentina and the United States, but slow and or silent to point out the difference between Brazil and Iraq. Reason being is because you have biased agenda that would prefer to give the impression Baghdad as a city is more cosmopolitan, advanced, and owner of more booming industrial and professional life than Sao Paulo city. Just as you would prefer an image of Brazil looking as sophisticated or less sophisticated than Iraq as a nation and people.

...
written by hmm, November 29, 2006

"I saw a lot poverty in USA and also in CANANA (?). Believe me, it is not so different from Brazil."

Canada, not so dif. than Brazil? There are more people living in favelas in Brasil, than there are Canadenses. Mas sim, temos bananas.

Re:
written by Brazilian Expat, November 30, 2006

And as far as Americans being lazy workers of the world please do not make me laugh

but he simply doesn't understand how 'some' american-born people are so lazy nowadays and don't get well off in a country like this

Indeed. I was in a hurry and, among some other spelling errors, I forgot to write the word 'some', which changed the sense of the sentence. My bad. As a matter of fact, I'm a great admirer of the american culture. Most americans are hard-working people and that's why the country is so rich. What he pointed out, and I have noticed myself, is that most poor americans don't have good values towards work, with some exceptions. From my own experience, poor americans tend to be terribly lazy and uneducated. They are hard to work with. This guy who I cited shares the same vision. And there are plenty of opportunities, not only in the construction industry, paying more than US$ 6/hour for anyone who has a little bit of enthusiasm in learning and working hard.

As for the rest of the first paragraph, it's not a fantasy tale. Interview the brazilian commnity in the US and you'll see it. I'm not saying they are rich, but their life standards are much above those in their home countries. Most of them advance at least to lower middle class and some even get rich in a way they couldn't in their home countries. Even those mexicans, with whom you are so worried about. They should simply compare to the life standards back in Mexico, not in the US.

Please, don't make it general because some puerto ricans get back to their country and some mexicans are stuck in poverty. Those people are exceptions.

As for Sao Paulo... it is a booming industrial giant and cosmpolitan city. It has more helicopter taxis than any city on earth. Discovery Channel Atlas just did a 2006 show on Brazil giving it the pomp and emotional tale of individuals transformations as is usually given to the United States. They show almost moved tears in me at the end. It followed a number of people in Brazil including a young mixed-race woman who is a helicopter taxi pilot that shuttles high paid executives from one sky scraper to the next. I believe the show stated Sao Paulo has either 100 helicopter lift off per hour or per day. Either way Sao Paulo is a city with a huge economy and massive wealth it is in every way a city that epitomizes capitalism. Discovery channel also followed a mixed-race cowboy in Brazil, and according to the show Brazil has more cowboys than any nation on earth. -- Listen Brazilians have every right to be proud of Brazil and even reckon pride in the fast pace business city of Sao Paulo.

We need to define things here: there is no boom in São Paulo anymore. The economy of the city is growing too slow, if not shrinking. As to the latter, you are right, there is a lot of wealth there yet, though not to the extent that existed in the past. And as for the helicopters, that doesn't mean São Paulo is richer than, or as rich as New York, Chicago or Los Angeles. You should visit the city to notice how it's today a sea of poverty with a few islands of wealth within. And this particularity of the city is why there are so many helicopters in São Paulo. First, the main company offices for Brazil and even the whole South America are concentrated in São Paulo, in a way hardly seen anywhere else in the world; second, the traffic in the city is a mess and it's not rare to take 2 hours to make some less than 10 mile trips. It's even worse when there is rain; third, the city is too violent and being in the traffic increases the risk of one suffering violence. As such, big companies, that have more money to spend, invest in helicopters in order to make their executives go from one place to the other in a much faster and safer way. American companies usually don't invest so much in that kind of things because the traffic problems and violence in the cities are much smaller than in São Paulo, despite the fact that their incomes and profits are usually much higher.

continuing...
written by Brazilian Expat, November 30, 2006

As for the tariff issues I already told you it worked for nations like the Japan and the United States when they were trying to improve their industries. England is a nation that colonized numerous lands and made it law that those nations had to sell their raw goods to them (at the price England set) and England would turn around and sell those products turned into finished products for very high prices back to her colonized lands - it was not a "free market" she operated.

No. Read back to the Toyotist times: Japan was trying to enter the american market for cars, however having high tariffs to protect the country from the american cars imports. The american government decided that they would impose the same tariffs on japanese cars as the japanese