Brazil Sees China and India as Model and Threat

The challenges posed to Brazil by the development of China and India will be debated starting today till May 12 at the XVII National Forum, sponsored by the National Institute of Superior Studies (Inae), at the headquarters of the National Bank of Economic and Social Development (BNDES), in Rio de Janeiro.

The central theme of the event, which will be opened by the Minister of Finance, Antônio Palocci, representing President Luiz Inácio Lula da Silva, will be “China and India as Challenge and Example and Brazil’s Positive Reaction.” The inaugural session will deal with the basic conditions for sustained growth.


According to the former Minister of Planning, João Paulo dos Reis Velloso, Brazil faces the risk of losing ground to China and India in the global arena. In Velloso’s view, the two countries are increasingly becoming Brazil’s biggest competitors among the emerging countries.


According to data from the Foreign Trade Studies Center Foundation (Funcex), whereas China’s exports grew fivefold between 1993 and 2003, from US$ 92 billion to US$ 428 billion, and India’s tripled, from US$ 21.6 billion to US$ 57.1 billion, Brazil’s sales abroad during this period only doubled, from US$ 39 billion to US$ 73 billion.


Reis Velloso explains that the dynamism of the two rivals represents, at the same time, an example and a challenge for Brazil.


In his assessment, the two countries “became strong competitors in sectors in which Brazil also wants to compete on the international market.” Steelmaking is one of these sectors, the ex-minister points out.


A study conducted by the Inae, where Reis Velloso occupies the position of General Superintendent, reveals that China and India have also become very competitive in key areas, such as Information Technology, including the area of information services (especially software), in which Brazil is still taking its first steps. Lower labor costs are one of the reasons for this, the Inae study found.


The way for Brazil to react successfully to its competitors’ performance, according to Reis Velloso, hinges on the consolidation of sustained growth, for the Gross Domestic Product to attain an average annual growth rate of “at least” 4 or 5%.


Reis Velloso affirmed that this growth should be based on technological innovation, applied to both industry and agribusiness.


Agência Brasil

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Brazil: Lula Should Know He’s Not a Czar

The government of Brazil erred in speaking against the report in The New York ...

Brazilian Gasoline Gets Back Its 25% Alcohol Addition

Brazil has two kinds of sugarcane-based ethanol. There is a pure ethanol. And there ...

Coca-Cola’s Dirty Little War in Brazil

Says Laerte Codonho, president of Dolly Soda, a Coke competitor in Brazil: "All I ...

Brazil Giant Carbocloro to Run on Pilot Software

Carbocloro Indústrias QuÀ­micas from Brazil has selected American-based Pilot Software for controlling its operations. ...

Amnesty Urges Coroner Probe on 2005 Killing of Brazilian in London’s Subway

The coroner's probe into the death of Brazilian electrician Jean Charles de Menezes, who ...

19 Countries in Brazil to Buy Her Shrimp

Entrepreneurs from 19 countries, including Spain, France, Italy, and England, are participating in the ...

In Brazil, Basic Education Gets Only the Crumbs of Public Money

Objective measures of the cognitive ability of students in the Brazilian education system have ...

French Carmakers Grow Above Average in the Brazilian Market

Carmaker Renault Brazil has just announced that it sold 79,273 vehicles between January and ...

FTAA: Brazil’s Poison Pill – Final Part

The successful policy against AIDS implemented in Brazil will be put in jeopardy if ...

While Death Toll Rises to Over 180, in Rio, Forecast is for Continued Rain

Rio’s rains now have killed at least 180 people and over 14,000 were left ...