Among two conversations with 2 taxi drivers in downtown of Sao Paulo, I concluded how much Brazilians love their country while hate politicians´ and economists´ actions to its politics and economy. Looking into Brazilian citizens eyes, asking them and negotiating that the coming days will be harder than what had passed, left me wonder why Brazilian government is not doing enough!
Back to the golden days of 2010 and its high 10.5% GDP growth; Brazilian middle classes had sensed the hope of better future which starts fading in the end of 2011 with raise in unemployment and inflation rates. However, the 5.8% unemployment rate in 2012 is still considerably low with nearly ZERO economic growth -when it compares with European countries- wrote Kenneth Rapoza in Forbe, Brazil Discovers How To Increase Employment With Near-Zero Economic Growth:
How the country managed to do this is unclear.
Brazil has the opportunity to fulfill its demand of (mão de obra) working forces until 2016 where it must meet its commitments to WorldCup 2014 and Olympics games Rio 2016 beside its huge construction program of (Minha casa minha vida) “my house my life” to construct cheap popular houses.
Although, Brazil need a completely makeover operation to its infrastructure, I’m not sure that the next governments are committed to do so. Therefore, Brazil need a new vision beyond Lula’s magical 8 years which can’t be repeated for ever.
Is it a bad sign of their markets or just a proactive step?
In order to protect their economics and minimize risks from another economic crises, the two giant BRICS partners and emerging markets, Brazil and China, have signed a $30 billion currency exchange pact on Friday 22 of June 2012. The deal will commit both Central Banks to set aside money to help one another in case global credit dries up, said Forbes.
“We recognize that developed economies are still in crisis. The BRICS are the most dynamic, and we’ll continue to expand,”
Brazilian Finance Minister Guido Mantega said at a press conference at Rio+20.
The future is promising for the “Country of future” but do its leaders know the path to achieve it?