Jeffrey Sachs, director of the United Nation’s Project of the Millenium, affirmed yesterday that Brazil has paid a high price for years of economic instability, but he pointed out that the country is capable of growing 5% per year.
The American economist said that, overall, Brazil paid a price for its unstable past. “And we witnessed this when there was a panic on the international market in consequence of Brazil’s country risk premium during the presidential elections.”
According to Sachs, the reason that this occurred was the country’s long history of instability.
“I think that Brazil acted correctly in that context. Containing the panic was what mattered most. If you compare the situation several years ago with the present, there has been significant development, since the government has demonstrated calm instead of panic,” he emphasized.
Although he believes that Brazil could grow at an annual rate of 5%, Sachs underscored that economic growth alone will not resolve the problem of poverty.
“Poverty also demands government investment. Growth is not enough. It has necessary to have growth together with government investment,” he said.