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Brazil: The South American Tiger Is No Black Sheep Anymore PDF Print E-mail
Written by Clara Angelica Porto   
Wednesday, 23 July 2008 04:10

Brazil's Morumbi Shopping mall On Tuesday, May 13, The Wall Street Journal published an article stating that after decades pursuing a convincing economic growth, Brazil has finally reached the other great emerging economies of the world. Until recently Brazil had been kind of looked down as the black sheep of the BRIC group (Brazil, Russia, India and China), to the point that some even suggested that the B should be dropped and the group should be named RIC.

Not any more. Now it is being finally recognized that Brazil has made it to the front line of the new economic powers of the planet. WSJ said so and all those who write about the economy seem to agree: B is effectively in BRIC, and it's as simple as that.

All freedom is something live
and bright and limpid,
just like a fire or like a river,
and thereby man's heart shall forever
provide it with a dwelling.
 Thiago de Mello (poet from the Amazon)

Gone seems to be the time when the South American giant came by struggling slowly, showing signs of instability all over. The truth is that the Brazilian economy, slowly, true, but steadily, reached a turning point, with a valued and stable money, the real, and credibility.

In the last years foreign investment in Brazil has grown enough to help push this kind of stability. Even if Brazil is not growing as much as China, the picture is significant, when not too long ago, in 2002, the country was drowning in debt. Brazil does not have as much money and investment as China and India, but on the other hand it has reached a more mature level in its trail of development, more so than the Asian giants, with a bigger urban population and better standard of living.

Let's see what's happening in some areas. Food, for instance. One of the world's present major concerns is the shortage in food supply. Brazil is doing very well in the area and it can do better if it plans the use of all the land and the capacity to plant and harvest the entire year responsibly, in a sustainable way. In few years Brazil became the number six biggest producer of meat in the world.

In 1991, Brazil was producing 56 million tons of grains; in 2007, the number grew to 133 million tons, taking Brazil to the group of the largest grain producers in the world. Brazil is also the most competitive producer of biofuels; sugar cane, the most important element for the making of alcohol/fuel, takes small planted areas, and it is not one of the basic foods, unlike the corn used in the US, crushed to produce energy when it could be used as food.

This is reality, and it is good reality. However, it is also reality that this great fortune might turn against Brazil, if this is done through the use of illegal and/or excessive deforestation. The government has to work out its laws, policies and regulations, and it has to keep an open dialogue with institutions that protect the environment and the associations gathering producers to make sure the privileges of the combination of a climate that favors the agribusiness and the extension of territory will be used to benefit the economy   and the people of Brazil and the world, without causing irreversible damage to  the environment, with no irresponsible deforestation.

The best and only acceptable scenario is to grow while preserving the environment. And there are many ways for the government to keep control and to stop more damage than what has already been done.

There is a popular say in Brazil that the best way to reach people, to make them listen, is to reach in their pockets. The Brazilian government recently said that they will start denying money to finance those who are caught causing damage to the environment. This is a good way, as it also would be to change the rules for money loans.

In 2007, from one program alone cattle breeders got over 1 billion dollars in subsidized loans. While the interest rates for companies in general were between 26% and 34%, cattle breeders in the Amazon only paid between 5% and 9%. Another program took only between 1% and 4% from them. Such major difference seems to feed the greed that blindly destroys the forest: more and more land to make more and more money.

The money making wheel will not stop on its own, but it can and it must be controlled. Numbers do not lie and they indicate that as prices go up, so does the greed and deforestation. Either the government has to establish ways to control this by reaching in the pockets of greed, or the government will be accused of financing such greed and deforestation.

Presently, when deforestation happens, the producer pays a big fine and goes on using the land. So the government gets paid for the crime and then it's OK? Well, now the government is saying that there will be a fine and the land will not be used. And they are planning to catch the other ends too, like if the meat dealers buy from producers who have committed the crime of deforestation, they may be accused of dealing with criminal product. There is even talk of suspending all deforestation, even what is legal. As good as it sounds, reality is sad when one considers that 99% of deforestation in the state of Pará today, as just one for instance, is done illegally.

The truth is Brazil wants progress and a better life for its citizens; Brazil wants to be a true giant, it is growing and showing that this is not just a dream that may happen, this is already happening.

But we must keep in mind that there is a price for everything in life. And the price of the agribusiness cannot and should not be so high; progress does not have to come at the expense of life for future generations, in Brazil and in the rest of the planet.

Clara Angelica Porto is a Brazilian bilingual journalist living in New York. She went to school in Brazil and at the University of Wisconsin in Madison. Clara is presently working as the English writer for The Brasilians, a monthly newspaper in Manhattan. Comments welcome at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Comments (28)Add Comment
AGAIN IT ALL GOES BACK TO THE GOVERNMENT DOING THE RIGHT THING
written by Forrest Allen Brown, July 23, 2008
AND HOW SMALL ARE THIES AREAS
takes small planted areas, and it is not one of the basic foods, unlike the corn used in the US, crushed to produce energy when it could be used as food.
AND WHAT ARE THE WORKERS CONDITIONS THEIES PEOPLE WORK UNDER .
AND THE MILLIONS OF TONS OF POLUTION THEY PRODUCE

TOO LATE
it is also reality that this great fortune might turn against Brazil, if this is done through the use of illegal and/or excessive deforestation

AND THEY COMPLAIN ABOUT US FARM SUBSIDIZED PLAN
In 2007, from one program alone cattle breeders got over 1 billion dollars in subsidized loans. While the interest rates for companies in general were between 26% and 34%, cattle breeders in the Amazon only paid between 5% and 9%. Another program took only between 1% and 4% from them. Such major difference seems to feed the greed that blindly destroys the forest: more and more land to make more and more money
GREAT ARTICLE
written by Hank, July 23, 2008
Again, another clarifying analysis, a very good article. There is a lot to be done in Brazil, that's for sure, but it is also amazing the changes and the progress of the country. When the government decides to do more for infra-structure and education, I think no one will be able to stop Latin America's giant. And this new reality is happening during the administration of the metal worker, it's quite something, is it not?
I wonder who said .....
written by ch.c., July 23, 2008
"some even suggested that the B should be dropped and the group should be named RIC." ????

Me....for sure !
smilies/wink.gif smilies/cheesy.gif smilies/grin.gif

I also wonder if sugarcane is NOT...."one of the basic foods such as corn"
To my knowledge SUGAR is a BASIC FOOD....both for humans and bagasse for animals.

And the residues from corn transformed into ethanol is called
DGPS...a highly nutritive food for animals.....if the junkie reporter did not know !!!!

Funny that there is not a word that Brazil is the second largest IMPORTER of wheat....coming from a "knowledgable" reporter !!!!

Brazil is UNABLE...to build sugarcane mechanical harvesters when they are in existence for....DECADES.....ELSEWHERE !!!!
Meaning they prefer manual harvesting with workers in a slave alike working condition !!!! Be proud Brazil !!

No doubt it is better to produce fuel from corn using mechanical harvesters rather than from sugarcane using slaves alike workers !!!
Be proud Brazil !!!

And to Hank "When the government decides to do more for infra-structure and education"
You said it all...WHEN.... ?????
Promises made thousand of times by Bin the Crook and his 4000 thieves, and also by their predecessors in the last 30 years.
BR 163 a major "road" for Mato Grosso soyabeans for which hundreds of promises were made in the last 30 years to pave it and is still NOT paved...TODAY !!!!
Enjoy your viewing of their main transportation road :
http://mariri.net/rainforest-blog/?p=7
smilies/cheesy.gif smilies/grin.gif smilies/cheesy.gif smilies/grin.gif smilies/cheesy.gif smilies/grin.gif smilies/cheesy.gif smilies/grin.gif smilies/cheesy.gif smilies/grin.gif

And for education, just remember the rating Brazilians applied to themselves : 46th out of 50 in one test and 34th out of 34th from Jornal Hodje (Brazilian and owned by TV Globo) test !!!!!

Yessssss WITH WHEN OR IF......one could transform rocks to gold !

But when a country budget is mostly used for the well being of administrative bureaucrats, further used by giving very high salaries and perks to politicians, and finally some money stolen from the corrupted officials......NO DOUBT MUCH LESS REMAINS FOR THE BENEFIT OF THE WHOLE SOCIETY !!!!
Furthermore to Forrest Allen Brown...on Brazilian cattles :
written by ch.c., July 23, 2008
You are so right.
But while Brazilians junkieSSSSS will answer as to HOW HIGH the cattles and meats prices are.....they view it only from their UNcommon sense, reality being quite DARKER : COSTS OF PRODUCTION ZOOMED AND PROFITS MARGIN COLLAPSED !!!

For further clarification :
22 July 2008 - Tuesday
Cattle Costs Hit Historical Levels

Data released this Tuesday, 15, from the Center for Advanced Studies and Applied Economics (Cepea) show that the cost of production of cattle has reached a level never before seen. Considering a starting point back in March 2003, the index which measures the costs of production has risen more than 60% as of March this year. In March 2008, the cost of production of cattle - The Total Operating Cost (TOC) - rose 4.04% from February to March and 10.6% for the year.

From March 2003 through 2008 cattle prices have increased 27.22% while operational cost have risen 63.19%. In these past five years, mineral supplements, fertilizers, and labor the largest increases, rising 48.25%, 11.97% and 8.58% respectively. Only in the month of March this year, the same items rose 18.42%, 7.57% and 21.89%.
source: CEPEA/ESALQ "

Anyone can ask a Brazilian cattle farmer...if HE is happy...these days !!!!!

No doubt most will ask for MORE subsidizes and get some.
Something Bin the Crook would have been furious....is MORE subsidizes
were provided BY developed nations.

LAUGH...LAUGH...LAUGH....!!!!




Brazil: The South American Tiger Is No Black Sheep Anymore
written by .., July 23, 2008
I respectfully request the editors to change the title of this article to:

The Roaring South American Lion is No Sleeping Tiger Anymore.

Thank you
Or.......
written by ch.c., July 23, 2008
The Tiger is still trying to bite his tail !
What else could he do ???

Ohhhh yesssssss....barking....to give the impression he is strong and not backing away ! But impression...it remains !!!!
...
written by .., July 23, 2008
The Tiger is still trying to bite his tail !
What else could he do ???


You are a very smart feller smilies/grin.gif
A dissenting opinon
written by Joseph, July 23, 2008
Nice article, full of fluff....

Let us look at some other inconvenient facts:
1) For those of us who work in the inbound travel industry, the dollar has lost 65% of its value, adjusted for inflation, we are making do with just 20% of what we had 4 years ago.
2) People have more things, or rather, they have more debt as the salaries are not keeping up with real inflation. Brazilians are owned by banks (mostly foreign) with interest rate of almost 13% a MONTH for most purchases.
3) Things are super expensive in Brazil, from cars, to clothes, and to basic electronics. This has not gotten a lot better during the years, only the credit given to consumers is more robust so that we are all being made slaves to financial interests.
4) Violence is spiraling out of control in Rio, Sao Paulo and REcife with no improvements in site....the "richer" Brazil gets, the higher the crime soars as the have nots, still have not and they are not as content to receive the free govt. hand outs that we read in the foreign press.
5) The Middle Clas has actuall shrunk under Lula, and in Rio de Janeiro, significatly so....throwing a lot of lower middle class into poverty....
6) Inflation stats say there is only 6.3% right not....yet all of my basic bills have gone up over 10% from last year and food over 300% in some cases...


Please show me the Brazil that is doing so well...as most of yet living in reality have yet to find it!
...
written by .., July 23, 2008
A dissenting opinon
written by Joseph, July 23, 2008
Nice article, full of fluff....


You must be a Brit or spent some quality time in U.K to make such a diplomatic remark!!

Regardless, your comments are full of substance and truth. Congrats.

It is easy for the writer in NYC and try to convince the educated Brazilians who live here that "all is blau" in the "patria"!!

...
written by .., July 23, 2008
It is easy for the writer in NYC and try to convince


Sorry, a typing error: Should read "It is easy for the writer to SIT in NYC and try to convince.......
Joseph
written by Shelly1, July 23, 2008
The violence in Rio has escalated to a such point, that I refuse to visit my city. Read about Joao Roberto, 3 years old "executed" by the police in Rio:

http://gritodanacao.wordpress.com/2008/07/08/menino-joao-roberto-de-03-anos-que-foi-executado-por-policiais-no-rio-foi-enterrado-hoje/

Enough! Brazil is a backward country, is exploiting its citizens, its environment.
...
written by Shelly1, July 23, 2008
Here everyone for you to see what is like to live in Brazil. PAIS DAS BANANAS!

http://g1.globo.com/Noticias/Rio/0,,MUL640078-5606,00-MENINO JOAO ROBERTO E ENTERRADO AOS GRITOS DE JUSTICA.html
Clara Angelica
written by Shelly1, July 23, 2008
Why don't you go back to Brazil, if the country is doing so good? Please, if you do go back, make sure to go to Rio or Sao Paulo! Your article is full of frill. Why don't you write about the everyday reality of what is like to live in the big cities, go and speak to citizens and use your pen to inform, not to deceive.
Is Shelly bending out of shape again?
written by ..., July 23, 2008
Shelly is having a “John Wayne” moment… and you better shut your mouth! Quit complaining and moaning from your home in Virginia or whatever the hell you live.

There are 8 million of us living in Rio. I take the subway every day to go to work, Monday thru Friday, never had a problem, neither hundreds of my acquaintances! You don’t live the reality of Rio, I do.

Spare me the image you like portrait as Misses Right, Save the World Citizen Cayne, you really are full of bulls.h.i.t. May your son be drafted to the war in Iraq and fight for freedom and George Bush. Shelly, you are an idiot!

Shall we mentioned your hubby?

Costinha

Claro Angeli
written by Simpleton, July 23, 2008
So why did my angel leave Madison, the home of the rich and aimless? Four lakes, a few trees, rich farm fields and people blameless for their forefather's sins.
So why did my angel not see aforehand that which is my plight?
Pen to paper, paper from pulp, pulp from the trees that once towered together supporting more than just each other.
You say back to Rio my angel must go but not just only to write. This angel did not break my fall from great height nor raise me up from the crumpled heap that there, for a moment, I lain. Wings for change my angel has not. By word and deed forthgoing and forthright amongst the people we few move. Ever foward the seeds are sown for the change which we ourselves will see not.

Shelly, back to your city you say you refuse to visit. Is there someplace else you think what you do / have been contributing is more deserving? Problems of different natures require a different response and every place has different problems. Some people choose to work on much tougher problems than others. Some are like Ch.c, they'll invest of themselves for a select few of such causes, those being the ones they see as potentially providing the highest rate of return on investment. Others will appear to some as banging their heads against rocks repeatedly and tirelessly for prolonged periods. Yet others are naught but the stumps of the trees long since chopped and do nothing to help but perhaps stand in the way of the plow.
Simpleton
written by Shelly1, July 23, 2008
Beautiful poetry, however the reality of the city is something that I am quite aware of. I went there 2 years ago and saw the decline of the city-when I left Rio was a beautiful city, now is dirty, poorer, and how many favelas.

Go and tell the parents of Joao Roberto, a 3 year old child, assassinated by the corrupt police in Brazil, that Rio is a good place to live. Go and tell the citizens of Rio, that a stray bullet is not a reality. Go and tell the factories of armored vehicles that their profits are illicit-sure you know that we sell more armored vehicles in Brazil than anywhere else in the world!

Rio has become a real disgrace, it is hard, as a mother, to say that the parents of Joao will get justice. They will not, and more parents will loose their kids to senseless violence.
Costinha the clown
written by Shelly1, July 23, 2008
Costinha: Perhaps you should stop reading "O Globo" and stop "watching novelas", Cariocas like you are the scum of Rio!

"They have barely reached puberty, but already Rio's teenagers have picked up weapons to fight in the ongoing drug wars. Brazilian gangs prefer using children to do their dirty work -- their prison sentences are shorter.

Ricardo M. was 11 years old when he killed a person for the first time. It was night, and about 20 boys had gathered at the highest point in the favela. With hunting rifles and assault weapons slung over their shoulders and handguns stuck into the waistbands of their Bermuda shorts, it looked as if a war were about to break out in this poverty-stricken neighborhood on the outskirts of Rio de Janeiro. After an evening spent snorting cocaine, the boys were high and completely uninhibited."

http://www.spiegel.de/international/spiegel/0,1518,469510,00.html

To Joseph "the dollar has lost 65% of its value, adjusted for inflation, we are making do with just 20% of what we had 4 years ago. "
written by ch.c., July 23, 2008
Funny your stats. But coming from a junkie.....normal !!!

In reality
1) the US$ LOST 23 % against a basket of foreign currencies
2) The Brazilian currency appreciated so much, not due to your economic prowess, but because Brazil has the World Highest Interests Rates.....After inflation ! Or to quantify it somewhat around
7 to 9 % ABOVE YOUR INFLATION RATE.
Just unheard elsewhere, otherwise you would NOT have the world highest interests rate....by definition.
3) Looking at YOUR difficulties when the US$ is weak is quite fine, BUT....BUT....I just remind you that your currency is still 37 % BELOW
what it was.....from 1995 to 1998....when your currency was pegged !!!! Therefore looking the way you do....after your currency plunged by nearly 70 % first and then rallied.....is typical of junkies. While in reality, your currency first went from 1 to 1 against the US$, to 0,27 to 1, and now 0,63 to 1 !!!!
It still must appreciate by 50 % just to go back to 1 to 1 !!!!!!
Not by tomorrow....wether you like or not.
4) I have been nice to you because I started only in 1995. Had I started earlier, I just remind you that Brazil had the world highest inflation of around 2500 % per year.....yesssssss...per year.....between 1992 and 1994 !!!!


Funny how junkies have NO memory....OR NO.....knowledge on what they are talking about !!!!

To refresh more your memory I just remind you that Brazil had cut 4 times 3 zeroes out of their currency. Or said otherwise 12 zeroes and then Brazilians junkies pretend the US$ HAS BEEN WEAK !!!!!
Yesss...you would need ONE THOUSAND BILLION (no typing error) of your 1930 currency to make ONE BRL in 2008 !!!!!

Hmmmm.......yesterday idiots...remain today idiots ! That is in your genes......and you prove it....DAILY !!!!!!


smilies/cheesy.gif smilies/grin.gif smilies/cheesy.gif smilies/grin.gif smilies/cheesy.gif smilies/grin.gif smilies/cheesy.gif smilies/grin.gif smilies/cheesy.gif smilies/grin.gif smilies/cheesy.gif smilies/grin.gif
Furthermore to Joseph......!!!!!
written by ch.c., July 23, 2008
I dont know how good or bad you are in basic maths.

- Let me just say that what went down first by 73 % (the BRL).....
this currency needs to NEARLY...QUADRUPLE....TO BE BACK WHERE IT STARTED !!!!
As said above...YOU are not back there....for years to come !!!!!
And you still need an appreciation of 50 %....wether you like or not !!!!


OF COURSE.....IF YOU FORGET FIRST YOUR OWN DEVALUATION....YOUR CURRENCY IS STRONG. AND THIS IS WHAT JUNKIES CAN ONLY DO......AS YOUUUU DO....JOSEPH !!!!!!!
Shelly: The Pretentious “B..i..t..c..h..”
written by ..., July 24, 2008
Meet the lowest of the low: Michelle (aka Shelly), the bitter old witch that can't get laid, because her english gay husband suffers from erectile dysfunction.

Brasil may be right or wrong, but good conscience calls for protesting in the ballot box, not spewing your venom and slandering Brasil before all, on this board, rationalizing your act of treason as somehow an obligation to something higher than country.

Shelly… You are a fraud, a con artist, a hustler, a predictable opportunistic swindler appeasing your gringo hosts… When you raise a hand against your own, you remind me of Judas, selling out your own mother for the right price!

Your conjectures are inconceivable, malicious, you rape us and yet, you offer no solution. You deserve every ounce of shame and punishment that one can muster. Thank God you are inconsequential.

Costinha

...
written by OBSERVER, July 24, 2008
COSTA,

THEY GOT YOU AGAIN, SORRY smilies/grin.gif smilies/grin.gif
Who is there?
written by ..., July 24, 2008
Uhhhh.... Jon Boy???

J.O.N. - The Jacking Off Nerd

Happy tossing off canadian monkey!

Costa
...
written by jon, July 24, 2008
Sorry Costa Rica, twas not me!!

Looks like you got another fan
ch c = poor moderating
written by Joseph, July 25, 2008
This ch c guy does not add anything to an honest discussion. When one cant discuss w/o calling names or acting juvenile, they are really missing the point of these issues and make themselves valueless.

PS When the real and dollar were 1 to 1, Brazil went into a tail spin for 2 years in the export sector and the receptive tourism industry was wiped out as it was an artificial barrier. We are having the same issues now as exports are slowing rapidly and inbound travel is down up to 40% in Rio....looks like we are going backwards here in Rio
Speaking of losers . . .
written by JR, July 27, 2008
Costinha,

Why not do the world a favor and drown yourself? Really, I doubt anyone would mind if your body turned up floating in the ocean - purple and bloated.

Just a thought,

Have a nice day! smilies/wink.gif
...
written by observer, July 27, 2008
Costinha,

Maybe you should find another line of work.. smilies/grin.gif smilies/grin.gif
Uhmm… JR huh?
written by ..., July 28, 2008
Must be Shelly’s homosexual husband… The english dude with rotten teeth. JR, the Judas’ Reserve. Two peas in the pot, ain’t it?

Observer JON (Jacking Off Nerd)… I think I found your twin, now you guys can fond each other!

JON & JR, referred to as Frocio & Finocchio, in Italian.

Hehehe


Costinha
...
written by jon, July 28, 2008
Costa Rica,

Tu es malade?? Non??

Twas not me, you are just seem to getting more admirers everyday! smilies/grin.gif smilies/grin.gif

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