Brazil is lost between its internal economic, social, industrial problems and global survival trends towards economy. The problem in Brazil is that The government has limited tools to adapt to this kind of foreign war, corruption and financial turmoils. As resident in Brazil I can see hopes in Brazilians eyes, but in the same time, the fear of been taken to anonymous future. Brazil must do a lot of work internally to get the confidence of its people before fighting the external powers.
An article by Financial Times: Brazil should embrace a freer market By Komal Sri-Kumar is worth to read.
According to Komal, Brazil’s challenges among others are:
- A host of taxes have contributed to manufactured exports declining from about one-half of the total in 2000, to about 30 per cent today.
- Tax revenues equal 35 per cent of GDP, one of the highest in the world, and high taxes and an inefficient tax structure require businesses to spend a lot of resources complying with regulatory requirements.
- The majority of public sector spending goes to salaries and entitlements, with public sector investment a mere 2-3 per cent of GDP.
- Exporters complain about the poor infrastructure that delays sales and adds to costs.
- The World Cup (2014) and the Olympic Games (2016), and their success will depend on infrastructure such as ports and roadways being completed on time.