StudentShare solutions
Triangle menu

Creating and Sustaining Growth In the Transition Economy of Brazil - Essay Example

Nobody downloaded yet

Extract of sample
Creating and Sustaining Growth In the Transition Economy of Brazil

In 2005, for example, the Goldman Sachs consulting group developed the Growth Environment Scores based on an assessment of companies in 170 countries as regards macroeconomic conditions, social and environmental issues, governance, corruption and other issues. The transition BRIC countries (Brazil, Russia, India and China) placed high on the list. China was on top followed by Russia, Brazil and India, in that order (Rybinski, 2006). This means that these previously planned economies are making big strides in their democratic transition to match the growth of the countries that have a developed market in place for a long time.
In other cases, the transition economy of South Africa was caught flat-footed when its rand stumbled in 2005, Hungarian bonds were sold out, and the Turkish stock market crashed 41 percent in dollar terms in seven weeks (IFC, 2006). Their policy makers failed to predict these events so as to create the necessary safety nets. South Africa is moving to a market economy after years of the contentious apartheid, Hungary was once a member of the communist bloc, and Turkey is shaking off monarchial rule.
The progress of any economy is measured by the amount of the foreign direct investment (FDI) that it both receives and places abroad. Of the current transition economies, Brazil comes second only to China as the world's largest holder of foreign direct investment with a stockpile of $30.8 billion as of 2000. This represents an increase of 273.6 percent from the 1996 figures when Brazil was taking the road to market reform. The UNCTAD World Investment Report 2000 thus listed Brazil among 20 countries all over the world that received the highest amounts of FDI then (Seabra & Flach, L, 2004). The report attributed this achievement to the improved macroeconomic environment in Brazil brought about by the structural changes undertaken by the government on the economy, primarily the trade liberalization program, privatization and a more flexible policy on the inflow and outflow of foreign capital.

Such large holdings of FDI, however, may be eroded by any negative performance of the American and European economies. If a prolonged recession occurs in the US and Europe, the FDI in Brazil and other emerging markets will collapse and trigger a worldwide crisis. To avoid this scenario, the emerging economies need to sustain their economic growth by strengthening domestic demand instead of relying on exports. This would stimulate imports and help balance international trade. Aware of this risk, Brazil has positioned its services sector as the largest recipient of FDI, such that 78.6 percent of foreign investment goes to this economic sector, with only 19.4 percent channeled to the industrial sector. The reason is that most of the country's industrial output is intended for export, while services cater to domestic needs.

In 2000 following 9/11, the amount of FDI dropped considerably around the world but the reduction was minimal in BRIC (Rorenstein, 1993). Brazil for its part maintained the level of its FDI ...Show more
Cite this document
  • APA
  • MLA
(“Creating and Sustaining Growth In the Transition Economy of Brazil Essay”, n.d.)
Retrieved from
(Creating and Sustaining Growth In the Transition Economy of Brazil Essay)
“Creating and Sustaining Growth In the Transition Economy of Brazil Essay”, n.d.
  • Cited: 0 times


Once the centrally planned economies embarked on the road to the open market, they logically look up to the western economies of the US, UK and other European citadels of capitalism as models. The problem is that the criteria for predicting growth, as well the factors that create and sustain development, are inherently different in the economies that were held in the grips of socialism and militarism for nearly a lifetime…
Creating and Sustaining Growth In the Transition Economy of Brazil
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Creating and Sustaining Growth In the Transition Economy of Brazil"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

The New Strategic Brand Management: Creating and Sustaining Brand
Brands act as a key attribute to differentiate its products or services from that of its competitors. It constructs a separate individuality for the company in favour of it from others. Brand is considered as the asset for an organisation as it augments the value of the product with the assistance of its outstanding salient features.
17 pages (4250 words) Essay
The economic growth and financial development relating to brazil
The economies of rapidly emerging countries widely known as BRIC (Brazil, Russia, India and China) have recently become the objects of fascination and speculation for international investors, policy makers, economists and academics worldwide.
16 pages (4000 words) Essay
Russian Economy Before And After Vladimir Putin
The country of Russia officially named as the Russian federation is situated in northern Eurasia. The republic of the country consists of 83 federal subjects. The country characterizes that of semi-presidential republic. The federation of the country is structured fundamentally.
9 pages (2250 words) Essay
Chinas Transition to a Market-oriented Economy
This essay highlights major economic issues in China, that impedes the successful transformation of the economy to a market oriented model. The transition continues to feature lack of political liberalization. The present nature of economy is deemed unsustainable as the economic liberalization and unchanged state of politics cannot co-exist.
3 pages (750 words) Essay
Sustaining long-term performance and growth
It impliesthat the best way for upstarts to attack established competitors is to disrupt them" (Christensen and Raynor 32). Figure 1 shows how this disruptive model worksThe focus of this paper is to ascertain the secrets of success in sustaining long-term performance and growth; in essence, how to become an innovator.
9 pages (2250 words) Essay
Creating and Sustaining an Organisational Learning Culture
Companies with a learning culture are more flexible and adaptive to the environment yet more focused on the critical factors that matter in their business (Martin, Puig, Tena, & Llusar, 2008). These companies achieve success through highly competent and effective people.
10 pages (2500 words) Essay
Economy of Brazil and Russia
In fact, governments become primary economic actors which regulates the whole economy by policies geared in attracting more investments, facilitating the inflow and outflow of products and services, determining the value of local currency and others. This paper will focus on the economic performance of Russia and Brazil in the past three years.
8 pages (2000 words) Essay
The government has been at the forefront in offering incentives to the investors in terms of loans or free tax zones to encourage investment (Diniz, 2014). Brazil is one of the leading green energy producers in
2 pages (500 words) Essay
The Comparison of Transition from Dictatorship to Democracy in Brazil (1964) and Argentina (1976)
In Argentina the military taking over was not a new thing as various military coups had been staged in 1930, 1943, 1955, 1962 and 1966. The military coups were therefore considered as a
1 pages (250 words) Essay
Trade balance, Exchange rate policy, Growth rate of economy in Brazil
This was followed by the export of Sugarcane in the 16th and the 17th century. In the 18th century precious metals and other gems was the main export commodity. In the 19th century the commodity that was exported was coffee (Embassy of Brazil in Wellington,
6 pages (1500 words) Essay
Comments (0)
Click to create a comment
Let us find you another Essay on topic Creating and Sustaining Growth In the Transition Economy of Brazil for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us