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2006 -
April 2006
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Written by Antônio Barros and Claudio Aragón
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Tuesday, 11 April 2006 11:00 |
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Much has been written about the world's emerging powers, from India and China to Indonesia and Brazil, but these analyses often fail to recognize the importance of key values and thought patterns in appraising the overall strength of an emerging world power. Distinguished thinkers have laid emphasis on the importance of undertaking a values analysis in order to adequately assess the vitality of a given community.
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"a record increase in the minimum wage, which the Lula government has taken from US$ 70 to US$ 150 in 3 years"
Well now, why didn't you put that value in REAIS??? Why the dollar? Because 3 years ago the dollar was anwhere from a 3-1 up to 4-1 exchange rate. Today it is down to 2.15 to 1. So, this increase certainly didn't double the minimum wage. But, with one of the WORLDS lowest minimum wages, one doesn't have to make much of an increase for it to be perceived as significant. 3 years ago the minimum wage in brazil was 240 reais per month, today it is 300 reais per month and supposedly increasing to 350 reais per month shortly. But our authors found it more advantageous to put it in dollar terms, since it looks better given the devaluation of the dollar.
"massive investments in infrastructure, from roads to airports"
And let me tell you, Brazil NEEDS MORE MASSIVE investments in infrastructure, in particular highways. They are dreadful and must account for a large percentage of auto deaths in brazil every year, which is a world leader in this category.
"and the Brazilian government's actions to break patents on several medications in a bid to stem the ravages of illnesses such as AIDS, hypertension and diabetes."
That was putting it very NICELY. "Break patents", what you meant to say is brazil STOLE the formulas, and basically gave the finger to the big drug manufacturers, and hey, I'm not crazy about those guys either, BUT, they do spend BILLIONS every year in research and development, and it is because of this we have cures for many of the diseases we have today. Not mentioning the fact that it is ILLEGAL, Brazil broke international law when they did this. So, basically, the brunt of the monies that these drug co's. make for R&D is on the shoulders of people in the U.S. Have you ever seen the prices for prescription drugs there??? If you don't have PRESCRIPTION insurance and you're seriously sick.....you're in serious trouble.
"Among the most sophisticated technology for uranium processing was developed in Brazil. While fully compliant with international non-proliferation treaties, Brazil has been known to have a uranium-processing program for years."
This is yet another, "100% brasieiro" project that it's principle components were stolen from French and German technology, and this is well known, and also claimed by the CIA.
"On the international stage, this new America in the Tropics is making a bid to take on a lasting leadership role. In 2005, Brazil announced its intention to seek, along with India, China, Germany and Japan, a permanent seat on the UN Security Council. "
First of all, China IS a permanent member of the security council, they don't need to seek it. There are 5 members, permanent members, the U.S., U.K., France, Russia, and China.
ANYONE can SEEK a permanent chair on the security council, obtaining one is another story. I wouldn't put too much stock on this if I were anyone, I believe Vegas currently has the odds at around 10 million to 1, so it might be worth a couple bucks if you're taking a vacation there.
"This centralization, essential for the decisive program of action set forth in the developmentalist Lula Doctrine, was bolstered by 20 years of military dictatorship from the mid-1960s to the mid-1980s. The period of the dictatorship did much to implant an acceptance of a strong central government in the Brazilian collective unconscious."
EXACTLY, and it's this "unconscious" behavior that prevents brazilian society from taking great strides, it prevents those with the ability to "speak out" and take "action" against this "cancer of corruption".
"Anecdotally, it is hard to find a Brazilian who, even now, 20 years after the demise of the military dictatorship, is willing to go out into the street without his national ID card, for fear of being arrested."
I would say that's a little dramatic, but I get your point, and the fact that it directly effects MOST in truly deciding to do something against the blatently corrupt. They still remember the "days of the dictator" and those that are in comfortable situations wouldn't risk them for all the tea in China.
"The Brazilian financial system is still victim to stark imbalances: the country's banks, among the world's most profitable financial institutions, charge among the highest interest rates in the world and the cost of capital is still prohibitive for most small- and mid-sized companies."
Just to set the record straight, Brazil has THE HIGHEST INTEREST RATES IN THE WORLD!
"Brazilian Internet use is growing exponentially. Orkut, a Google-owned virtual community, has over 7 million users in Brazil alone. The Brazilian government has also made the Internet an increasingly important avenue of communication with the country's 180-million strong population. More advanced in many ways than even First World countries like the US and Canada, in Brazil virtually all dealings with the government can be undertaken over the Internet."
This is definitely looking through rose-colored glasses. You absolutely cannot compare the technology in brazil, in quality nor price, with the U.S. and in most other first world countries. Firstly technology here is at least DOUBLE the price as it is in the states, and for SOME products as much as TEN times the price...and the average brazilian makes around 1/6 of the average american. So, you have inferior products, and technology that are MUCH more expensive. In the greater part of brazil, with possible exceptions in Sao Paulo and Rio de Janeiro, you cannot even get a CONSISTANT broad band connection. They are "problem laden", matter of fact, my very own connection in the last 3 weeks has went down, not only for me, but my entire city, THREE days within the last 3 weeks and EVERY DAY since monday of last week, for the last 9 days, throughout the day I'm receiving less than 100k/s and I'm paying for 1 MEG! But this is "normal" here, I've been living off and on here for 10 years, and it is a non-stop battle. Nearly all electronics, and matter of fact, it may be all, are imported, the prices on electronics are ridiculous. A plasma tv that you can buy in the states for $1,300 and a top of the line brand, you will pay 10,000 reais or more in brazil, and it will be a "no name" brand, or one of inferior quality.
"Although the real Brazilian GDP may be less than the US GDP in dollar terms, in terms of what that Brazilian GDP can buy within Brazil as opposed to what the US GDP can buy within the US, the difference may be much smaller than previously imagined."
Well, broad statement, need to be more specific, but first of all, the quoted brazilian GNP is around 600 Billion dollars, and that's taking into accont the weak dollar, the U.S. GNP is 12 TRILLION, 1/3 of the worlds GNP, and approximately 20 times that of brazil. Not to mention the fact, as I previously stated in respect to electronics, there are MANY items here in brazil that are MUCH more expensive than in the U.S. Take cars for example. If one has a honda civic here he's considered upper-middle class, if one has a honda civic in the states it's normally your son's or daughter's.A honda civic here in brazil today is right around 45,000 reais, you can buy them up to 52,000 reais, which is around 21-25 thousand dollars. You can pick up a honda civic in the states for 14K US, and then there's the situation with financing....should we even get into that?? In the states you have deals where you pay 0% interest for 60 months, and don't make your first payment until the 13th month!!
In brazil you're lucky to get a car loan for under 4% per MONTH.
"Socially, the Brazilian government is working overtime to spawn a well-educated, computer-literate middle class that can compete with the world and to lessen the disparities of wealth with massive social programs aimed at the redistribution of wealth."
Well, a hurculean effort will be required, no doubt. The problem is, brazil has MANY "programs", many "laws", and you ALWAYS here the same rhetoric, "well, we have a program in place", or, "we have a law about that, the problem is implementation!"
"It is true that the 2005 growth of the Brazilian GNP (2.3%) was disappointing"
Yes, it certainly was, considering the fact that the rest of the world grew on the average of 4%, so the entire world grew, and so did brazil, but it certainly didn't take advantage of the favorable economic atmosphere, didn't even make "par". But everyone knows, that when the "bust" comes, NO ONE misses that, you can reduce it, or it won't be as bad, but no one misses the "busts", brazil unfortunately missed the "boom".