describe how Brazil's wealth has changed since 1993,suggest some reasons for this change?

Question

if you could help with this quesion that would be great.it is geography question on GDP per capita"gross domestic product".it is a revision question so if you could help that would be gret.thankyou!

Answer 1

Brazil is a nation roughly the size of the United States , geographically speaking. Yet, from an economic standpoint, the two giant nations bare little to no resemblance. Brazil is still considered a "third world" nation and although it may seem a bit rigid and unwelcoming from an exterior view, there is nothing "third world" about this breathtakingly beautiful country and people.

The term "third world" refers to economic standing, and although Brazil has not yet found a remedy to its economic imperfections, it is a nation with unlimited potential. It has a huge territorial extent, with limitless natural resources, some entirely unexploited to date. Despite the preservation of these natural resources, few economies have seen the growth in recent years that Brazil has. The consolidation of currency and a series of structural changes, such as the Brazilian privatization program, monopoly suppression and a wide set of deregulations has allowed the Brazilian economy to recover its dynamics and begin to grow at an incredible pace. Brazil 's economy outweighs that of all other South American countries and is expanding its presence in world markets. Although Brazil is relative in size with the U.S. , its economy is only a fraction the size. Brazil 's gross domestic product (GDP) is only about 1.34 trillion U.S. dollars while the while the U.S. has a GDP upwards of 10 trillion. When comparing the two, the statistics seem staggering but one has to realize several factors when comparing the two nations. Brazil is a much younger country than the U.S. The U.S. did not just rise to become an economic superpower overnight, it takes lots of time, devotion, and proper leadership to reach this status and many experts think that Brazil is finally getting on the right track to becoming the world's next economic superpower.




Brazil has well-developed agricultural, mining, manufacturing, and service sectors but it will take other factors to move to the next level. Tourism is a growing source of revenue in Brazil which carries with it both qualitative and quantitative benefits. Brazils annual tourist arrival is near the three million mark, ranking Brazil 33 rd out of 152 countries worldwide. The rise of ecological tourism, or ecotourism for short, has brought revenues to the more remote sectors of Brazil . The fact that Brazil contains much of the Amazon rain forest, a name that just conjures thoughts of adventure and unspoiled beauty, will prove to be a great economic generator in years to come. It is a country rich in geographical and natural treasures and some time and proper marketing could lead the tourism industry in Brazil to become its leading revenue winner. Its perfect climate, untouched beaches, and vibrant people will Brazil a leading tourist destination in the years to come.

The people of Brazil are known worldwide for their flamboyance and reverence for life. They are a race of people whose physical beauty is only matched by the natural beauty of their country. Brazil 's inhabitants are descendants of a mixture of people. Portuguese colonizers mixed with the native Indians and African slaves. Dutch and French colonization also took place in the Northeast. In the 19th century, waves of German, Italian, Polish and Japanese immigrants added new elements to the mixture. Brazilians are perhaps one of the most racially mixed peoples in the world. Although there is a huge separation of social classes throughout Brazil , the quality of life is not reflected in the financial statistics. From the indescribably beautiful mansions to the shanty towns known as "favelas," Brazilians just seem to be a happy group of people, despite economic well-being 22% of the Brazilian population is considered below the poverty line.

Respectively, this does not seem much more than the U.S. where 13% of the population this below this income level. The majority of that 22% live in favelas. Favelas ( illegal settlements or shanty towns ) are found throughout Brazil and in other developing countries with an fast economic or population increase, which results in an explosive and uncontrolled growth of the cities. Favelas have a reputation among foreigners of being dangerous, lawless places that no one who is not a resident should enter. In some cases this is true, but the favelas have a colorful history and community pride that is unparalleled anywhere else in the world.

This is an alarming statistic, considering that nearly a quarter of the country is currently living in poverty. Despite some grim economic statistics, Brazil is a nation on the rise. No one can debate that. Brazil is expanding into the world market, income distribution is evening out, and the overall economic well-being of the country is looking up. People are beginning to realize the potential of this great nation. The single most amazing thing about this country is its great quality of life despite financial limitations. Life is pure, superficiality is limited and people just seem to be happy with what god gave them. A gorgeous country and a colorful culture that's full of life and happiness. It is such an amazing culture that is filled with music, dancing, and community pride. It is not just the beaches and the natural treasures that make the Brazil experience so incredible. It is the people and the culture that make Brazil such an amazing place to visit.

the early 1980's, however, a sudden, substantial increase in interest rates in the world economy precipitated Latin America's debt crisis. Brazil was forced into strict economic adjustments which brought about negative growth rates. The unexpected suspension of capital inflows reduced Brazil's capacity to invest. The burden of its debt affected public finances and contributed to an acceleration of inflation. In the second half of the 1980's, a series of stringent measures was adopted aimed at monetary stabilization. These included ending indexation (a policy of adjusting wages and contracts according to inflation), and the freezing of all prices. In 1987, the government suspended interest payments on foreign commercial debt until a debt rescheduling agreement with creditors could be reached. Although such measures failed to bring about the desired results, Brazil's overall economic output by the end of the 1980's continued to grow, providing enough surpluses in the trade balance to cover servicing of the debt.

The 1980's crisis signalled the exhaustion of Brazil's "import substitution" model (a policy that nurtured Brazilian industry by prohibiting the purchase of certain manufactures abroad) and it contributed to the opening up of the country's economy. In the early l990's Brazil was engaged in a series of far-reaching economic reforms. They encompassed a strict fiscal policy, tax reform, trade liberalization, deregulation, privatization, and the establishment of a legal and structural framework to attract and increase foreign investment. A wholly new economic agenda began to lead governmental action. Privatization accelerated, especially in two important sectors - steel and fertilisers. The country's revenue, as of 1993, is largely directed to debt reduction. As a result of trade reforms, Brazil has become one of the most open economies in the world with no quantitative restrictions to imports. The average tariff came down from 32 percent in 1990 to 14 percent as of July, 1993. Since 1991, foreign capital has again started to flow into the country. Foreign direct investment in 1992 reached US $3.2 billion, the highest since the early 1980's. Deregulation is evidenced by the liberalization of financial policies, by the abolishment of a programme that reserved the Brazilian market for Brazilian electronics and software, and by the privatization of many ports.

With a GDP of US $508.6 billion in 1993, the Brazilian economy is dynamic and diversified. In 1994, industry was responsible for 38.1 percent of economic output, agriculture for 10.0 percent, and services accounted for 51.9 percent. The dynamism of the country's economy is reflected in, among other areas, foreign trade and in the performance of exports. From 1988 to 1992 Brazilian exports have earned, on average, in excess of US $33 billion. Over 60 percent of these exports are manufactured goods. The trade surplus reached US $13 billion in 1993. The European Community absorbs almost 26 percent of Brazilian exports, North America around 22 percent (the U.S. is the largest individual trading partner), Asia absorbs 16 percent, MERCOSUL 14 percent, rest of ALADI 10 percent, Middle East 4 percent, and the remaining exports are distributed over a variety of smaller markets.


Natural Resources
Brazil is one of the richest countries in the world, as far as natural resources are concerned. Except for coal and oil, Brazil practically has it all. Mineraland precious metal deposits are extensive, with gold and coal under heavy production; the country is the world's second-largest producer of iron ore. Other important products include tin, quartz crystal, gems, wood and industrial-grade diamonds. Brazil produces significant amounts of petroleum, mostly from offshore wells, but imports more than half of its oil.

BASIC STATISTICS:
GDP purchasing power parity-$1.04 trillion (1997 est.)
GDP real growth rate: 3% (1997)
GDP per capita: purchasing power parity-$6,300 (1997 est.)
GDP composition by sector: agriculture: 13%, industry: 38%, services: 49% (1995)
Inflation rate-consumer price index: 4.8% (1997)
Total Labor force: total: 57 million (1989 est.) by occupation: services 42%, agriculture 31%, industry 27%
Unemployment rate: 7% (1997 est.)
Federal Budget: revenues: $87.5 billion , expenditures: $96 billion, oops!

Answer 2

Since 1985, Brazil has been regarded as a presidential democracy, a status affirmed by a plebiscite in 1993 which asked voters to indicate a preference